L&T Q2 net profit falls 45% to Rs 1,410 crore

L&T Q2 net profit falls 45% to Rs 1,410 crore

Representative image/Credit: Pixabay Image

Engineering and construction giant Larsen & Toubro (L&T) on Wednesday posted a 45 per cent decline in consolidated net profit to Rs 1,410.29 crore for the quarter ended September, hit by the Covid-19 pandemic.

The company had clocked a net profit of Rs 2,551.67 crore in the year-ago period, it said in a regulatory filing.

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"Net Profit After Tax (PAT) and share in profit / (loss) of joint ventures / associates from continuing operations before exceptional items for the quarter is at Rs 1,410 crore, registering a sequential improvement of nearly 4 times reflecting pickup in the business momentum.

"However, the impact of pandemic in terms of lower revenue, higher credit provisions in the Financial Services business and disruption of the Metro services, led to decline of 45 per cent vis-a-vis reported PAT of corresponding quarter of the previous year at Rs 2,552 crore," the company said.

Total consolidated income fell to Rs 31,593.77 crore in the July-September quarter, against Rs 35,924.89 crore in the year-ago period.

Total expenses slipped to Rs 29,455.57 crore from Rs 32,622.14 crore earlier.

"During the quarter, with the labour at various project sites reaching near pre-COVID levels, the businesses saw a pickup in execution momentum compared to Q1 FY 2020-21 and achieved a sequential growth of 46 per cent.

"However, the revenue declined by 12 per cent y-o-y due to the lingering impact of the pandemic during the quarter under review," the company said.

International revenue during the quarter at Rs 12,148 crore constituted 39 per cent of the total revenue, it added.