Engineering and construction major Larsen and Toubro (L&T) reported a 6% drop in its fourth quarter net profit to ₹3,197 crore (including profit from discontinued operations) even as the company bagged more orders during the quarter amid COVID-19 pandemic
The fall in profit was reported on a marginal 2% increase in revenue to ₹44,245 crore during the quarter due to challenges faced in a period characterised by economic volatility and a work-from-home/lockdown environment in the last fortnight of the financial year.
The company received orders worth ₹57,785 crore, registering a growth of 5% over the year-earlier period, with significant orders received in the infrastructure segment.
The consolidated order book of the group stood at ₹3,03,857 crore as at March 31, 2020, registering a growth of 4% over March, 2019. The company has deferred its order inflow guidance and is banking on State and Central government orders for this fiscal.
L&T’s MD and CEO S.N. Subrahmanyan said, “I don’t see a private sector investment revival in the near term. We expect some major orders from the State governments. Many of them are going through financial shortage and it may not be as it was last year.”
On guidance, he said, “We had a budget, which is not valid now and we need to rework the budget. So, we will defer the guidance till we get some more clarity.”