Engineering and construction company Larsen & Toubro (L&T) on Friday posted a net profit of Rs 536.88 crore for the quarter ending June. This was 68% lower when compared to Rs 1697 crore which was registered for the same quarter last year. YoY revenue of L&T also fell by 27% from Rs 30270 crores to Rs 22037 crores.
Figures reported for the June ending quarter is way below what analysts had forecasted. The market believed that the company will report a YoY fall in net profits. But the effect of lockdown due to COVID-19 pandemic has led to reducing the numbers even below what the market estimated.
|Q1 FY21||Q4 FY20||Q1 FY20||QoQ%||YoY%|
Lockdown forced the migrant labours to move to their villages in search of food and shelter. Even when the restrictions were lifted, the company wasn’t able to find labours in suitable numbers to carry their operations further with the speed and intensity they desired. This can be seen as L&T bagged orders worth ₹23,574 only, which was a 39% less than the previous year.
Statement of the company stated “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 also impacted the revenues. International revenues during the quarter at ₹9,497 crore constituted 45% of the total revenue.”
The country is still finding it tough to deal with the pandemic and it is going to be another tough ride for L&T in this quarter. With the threat of lockdown looming over the head, investors will be pessimistic if the company can deliver the projects on time.