Infrastructure and engineering major Larsen & Toubro (L&T) reported profit growth of 15.15 percent year-on-year (YoY) to Rs 2,352 crore in the quarter ended December 2019, driven by lower tax cost (down 37 percent YoY) and operating income.

Profit for the same quarter last year was Rs 2,041.62 crore. Revenue from operations in Q3FY20 grew 5.90 percent to Rs 36,242.68 crore YoY impacted by execution in the infrastructure business., 

Infrastructure segment recorded revenue of Rs 17,249 crore for the quarter, registering a 5 percent YoY decline. "Challenges faced in projects in Andhra Pradesh and for a short duration in Maharashtra and Delhi, coupled with lower fund allocation in some states adversely impacted the execution progress," company reasoned.

L&T said it won new orders worth Rs 41,579 crore during the quarter amid subdued business environment, taking total consolidated orderbook to Rs 3.06 lakh crore as of December 31, 2019.

"International orders during the quarter at 17,901 crore increased to 43 percent of the total order inflow, on large value order wins in power transmission a distribution and metallurgical and material handling business," it added.

Order inflow in Q3 declined 13.9 percent compared to previous quarter and fell 1.5 percent year-on-year.

On the operating front, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 9.8 percent year-on-year to Rs 4,117.7 crore and margin expanded 40bps YoY to 11.4 percent for the quarter despite lower execution.

Source: MONEY CONTROL