L&T Net Decline Registered at 68% as Covid Halted the Economy

Larsen & Toubro (L&T) on Wednesday posted 68.37 per cent decline in consolidated net profit to Rs 536.88 crore for the first quarter ended June 30, mainly due to COVID-19 and resultant lockdowns.

The company had clocked a net profit of Rs 1,697.62 crore in the year-ago period, the engineering and construction conglomerate said in a regulatory filing.

Its total income fell 27.19 per cent to Rs 22,037.37 crore in April-June quarter, against Rs 30,270.94 crore in the year-ago period, the filing said.

Total expenses slipped to Rs 21,367.63 crore during the quarter under review, from Rs 27,615.71 crore in the corresponding period previous fiscal.

"The Group's operations and financial results for the quarter have been very adversely impacted by the lockdown imposed to contain the spread of COVID-19. The operations gradually resumed with requisite precautions during the quarter with limited availability of workforce and disrupted supply chain," the company said in a statement.

For most of the quarter, the company focused on safety of its workforce, transition to productive remote working, staying engaged with all its stakeholders, conserving resources and resuming business in a carefully calibrated manner in an economic environment debilitated by coronavirus black swan event, it said.

While most businesses were significantly impacted by the pandemic, the company said it ensured that interests of all concerned - including customers, employees, sub-contracted labour force, partners, associates and vendors - were taken care of in a befitting manner.

"It is during these difficult times that the Company's committed employees, diversified business portfolio, geographical mix of business, robust Balance Sheet, strong Order Book position and execution strengths enabled it to ride out the unprecedented crisis that the world at large is grappling with," L&T said.

It bagged orders worth Rs 23,574 crore at the group level during the quarter ended June 30, 2020 registering decline of 39 per cent, in a period characterised by low interest towards fresh investment and deferment of award decisions, the firm noted.

International orders during the quarter at Rs 8,872 crore constituted 38 per cent of the total order inflow.

The consolidated order book of the group stood at Rs 3,05,083 crore as on June 30, 2020, with international order book constituting 24 per cent of the total, it added.

Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 21 billion in revenue.