Engineering and construction major Larsen and Toubro (L&T) has reported a 7.9% rise in its fourth quarter consolidated net profit to ₹3,418 crore on a 10% growth in revenue to ₹44,394 crore.
For FY19, the company’s consolidated profit rose 21% to ₹8,905 crore on an 18% increase in revenue to ₹1,41,007 crore. Revenue from international operations during the year at ₹45,109 crore constituted 32% of the total revenue.
The company kept order inflow guidance for FY20 at 10-12% with most orders expected in the second half of the year due to election results and time for the new government to settle. L&T expects 12-15% growth in its revenue for FY20 and margins at 10.5%, excluding services business.
The order intake for the quarter grew 14% to ₹56,538 crore.
International order inflow during the quarter stood at ₹17,680 crore, constituting 31% of the order inflow.
Commenting on the results, R. Shankar Raman, CFO & board member said, “The order inflow in the fourth quarter was the icing on the cake. Although domestic orders were a bit disappointing, international orders made up for the shortfall and the quarter ended on a happy note. Most of the orders came from the infrastructure, hydrocarbons and heavy engineering business.”
New orders
The company finished FY19 with a 16% increase in new orders worth ₹1,76,834 crore with international orders of ₹46,805 crore, or 26% of the new orders.
L&T’s consolidated order book of the group stood at ₹2,93,427 crore as at March 31, 2019, with international order book constituting 22% of the total order book.
The company’s board had recommended a dividend of ₹18 per equity share.
L&T’s MD and CEO S. N. Subrahmanyan believes that there will not be a major shift in policies after the new government comes to power.
“The current government has launched many schemes and projects and I don’t see any major shift in policies after the new government takes charge.
There should not be major disruption in old policies and we believe that there should be good optimism in the second quarter,” Mr. Subrahmanyam said.
