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Business

Labour code provision takes L&T net down 4% to Rs 3,215 cr

This was also due to muted domestic infrastructure inflows that weighed on order intake despite stronger overseas contract wins.

ENS Economic Bureau

MUMBAI: The engineering giant L&T has reported a 4% slip in net income at Rs 3,215 crore due to one-time hit of Rs 1,191 crore towards employee benefits provisions arising from the new labour codes, for the December quarter, and also because of muted domestic infrastructure inflows that weighed on order intake despite stronger overseas contract wins.

The company reported a 10% jump in revenue for the quarter to Rs 71,450 crore, and its order book crossed Rs 7 trillion-mark, reflecting a 30% growth from year-ago period, of which as much as 49% of orders were international, the company said in a statement.

It said the revenue growth of 10% was, "driven by steady execution progress across the various businesses within the projects & manufacturing portfolio," which crossed the Rs 1 trillion mark.

The consolidated order book stood at Rs 7,33,161 crore, reflecting a 30% growth over December 2024. International orders constituted 49% of the overall order book.

SN Subrahmanyan, chairman and managing director, said, “the quarter saw the highest ever quarterly order inflow in Q3. For the first time, the quarterly order inflow in projects & manufacturing (P&M) portfolio has exceeded the Rs 1 trillion mark - a reflection of our capabilities and the inherent strength of our business model. Consequently, the order book has surpassed the Rs 7 trillion-mark."

The infrastructure projects segment recorded an order inflow of Rs 61,876 crore, registering a growth of 26%. International orders accounted for 55% of the total order inflow for the quarter aided by receipt of high-value orders in the power transmission & distribution and renewables businesses, he said.

The energy projects segment secured order inflows of Rs 46,049 crore for the quarter, up 19% with receipt of ultra mega orders in the hydrocarbon- offshore wind and carbonlite solutions businesses. International order inflows constituted 43% of the total order inflow during the quarter.

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