July 22, 2020
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 the Coronavirus black swan event. While most businesses were significantly impacted by the pandemic, the Company 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.
Larsen & Toubro recorded Consolidated Gross Revenue of ₹ 21,260 crore for the quarter ended June 30, 2020, registering y-o-y decline of 28%. Revenue was impacted by nation-wide lockdown, resulting in halting of manufacturing and construction activities, non-availability of labour and disruptions to the supply chain ecosystem. International revenues during the quarter at ₹ 9,497 crore constituted 45% of the total revenue, with increased composition of the non-cyclical IT&TS segment.
The Company earned a total Profit After Tax of ₹ 544 crore of which allocation to Non-controlling interest is ₹ 241 crore. The consolidated PAT attributable to shareholders of the Company, including profits from discontinued business, is ₹ 303 crore reflecting a decline of 79% vis-à-vis PAT of ₹ 1,473 crore for the corresponding quarter of the previous year. The PAT was impacted mainly due to lower revenue, credit provisions in Financial Services business and under recovery of overheads.
The Company bagged orders worth ₹ 23,574 crore at the Group level during the quarter ended June 30, 2020 registering decline of 39%, in a quarter characterised by low interest towards fresh investment and deferment of award decisions. International orders during the quarter at ₹ 8,872 crore constituted 38% of the total order inflow.
The Consolidated Order Book of the Group stood at ₹ 305,083 crore as at June 30, 2020, with international Order Book constituting 24% of the total Order Book.