L&T falls on Q2

The market is not very excited about the performance of L&T and the stock today fell after nine consecutive days of gains. The stock opened over 3% lower at Rs.953  and went down almost 5% to its intraday low at Rs.935.55.

L&T ended Q2FY21 with a consolidated net profit at Rs.5520 crore, up by a huge 118% (YoY) as it comprises of profits of Electrical Et Automation (EEtA) business till the date of divestment to Schneider Electric (SE) on August 31, 2020 amounting to Rs.45 crore and gain of Rs.8,101 crore (net of tax) on conclusion of divestment of the business.

And if we remove this exceptional item, the profit was at Rs.1410 crore, down 42%. The company said that there has been a sequential improvement of nearly 4 times reflecting pickup in the business momentum but YoY, the net profit slipped due to the impact of pandemic in terms of lower revenue, higher credit provisions in the Financial Services business and disruption of the Metro services.

Consolidated Gross Revenues for the quarter was at Rs.31,035 crore, a 46% sequential growth but 12% YoY decline. International revenue during the quarter at Rs.12,148 crore constituted 39% of the total revenue.

Cash generation from operations was robust, supplemented by proceeds from the divestment of Electrical Et Automation business. The company has declared a special dividend of Rs.18 per equity share to mark the successful completion of the divestment.

The Company bagged orders worth Rs.28,039 crore at the Group level, a 19% QoQ  growth  but 42% decline on YoY  on account of deferment of award decisions largely caused by the pandemic. On a cumulative basis, the order Inflow for the half-year ended September 30, 2020 stood at Rs.51,613 crore, registering a decline of 41% (YoY).

Consolidated Order Book of the Group stood at Rs.298,856 crore as at September 30, 2020, with international Order Book constituting 24% of the total Order Book.