Tender Delays: L&T’s Q1 profit misses estimates
The April-June quarter earnings of the engineering major, Larsen and Toubro (L&T) was kind of a mixed bag, mainly due to the slowing down of the tendering activity by the central and state governments due to the second wave of Covid-19. As a result, L&T’s net profit and operating income missed Bloomberg consensus estimates. Revenues, however, came in line with estimates.
The company reported a near four-fold year-on-year rise in its consolidated net profit to Rs 1,174 crore, which was below analyst estimates of Rs 1,503.43 crore. Healthy execution of projects led to a 38% y-o-y increase in the company’s consolidated revenue from operations to Rs 29,335 crore. However, project progress was impacted with regional lockdowns, shortage of industrial oxygen and supply chain disruptions.
