A consortium of construction major Larsen and Toubro and Japanese IHI Infrastructure Systems has bagged the Rs 1,390 crore contract for procurement and fabrication of 28 steel bridges for the Mumbai-Ahmedabad High-Speed Rail Corridor.
A consortium of construction major Larsen and Toubro and Japanese IHI Infrastructure Systems has bagged the Rs 1,390 crore contract for procurement and fabrication of 28 steel bridges for the Mumbai-Ahmedabad High-Speed Rail Corridor. These bridges will be built over railway lines, rivers, highways, roads and other structures.
L&T has reported an operationally stronger than expected quarter with order inflows beating street projections.
The net profit has risen by 12.6 percent to Rs 2,648 crore versus Rs 2,352 crore and against an estimation of Rs 2,110 crore. The revenue for the quarter, however, is down 1.8 percent at Rs 35,596 crore versus Rs 36,424 crore when compared to the same period in the last fiscal (YoY).
Speaking in an interview to CNBC-TV18, SN Subrahmanyan, MD & CEO of the company said, “Rs 73,000 crore of order inflow is a record inflow from our performance point of view. We booked the largest EPC order of Mumbai- Ahmedabad high-speed corridor at about Rs 32,000 crore.”
“On the working capital, though as a percentage of sales is a bit high because for 5 months we didn’t have the sales but the quantum of the amount is more or less the same as last year that means we brought it to where it ought to be from a liquidity point of view. So we have done fairly well on all parameters of work and hope to take it forward with the same momentum,” he said.
On the debt front, he said, “Our overall debt is about Rs 185,000 crore. We paid about Rs 10,000 crore this quarter and it has come down to Rs 175,000 crore. In Rs 175,000 crore, Rs 91,000 crore odd is L&T Finance Holdings’ debt.”
“If you get into the details of our balance sheet, you will find that some of the debt is not utilized; these are cash lying in the books. We, at the beginning of the year (2020) when the pandemic struck, took a conscious decision to keep Rs 35,000-40,000 crore of cash in our books because we were not sure about the uncertainties,” said Subrahmanyan.
Watch the video for the full management interview