L&T Navigates Financial Shifts Amid New Labour Codes

Larsen & Toubro reported a slight decline in quarterly profits due to a one-time charge from new labour codes. Despite this, the company saw a rise in revenue, driven by strong project execution. With a robust order book, L&T is optimistic about exceeding its order inflow guidance.

Larsen & Toubro (L&T) witnessed a 4.2% decline in its consolidated profit after tax for the December quarter, attributing the decrease to a significant one-time provision for employee benefits. This arose from the implementation of new labour codes, impacting the net profit to Rs 3,215 crore.

In contrast, the company's revenue from operations saw an impressive 10% increase over the same period. It rose to Rs 71,450 crore, driven by steady execution across various business sectors. The order book also swelled by 30%, reaching Rs 7,33,161 crore, nearly half of which stems from international orders.

L&T's top brass, including CFO R Shankar Raman, expressed confidence in surpassing the initial order inflow guidance. The company is also progressing in its divestment discussions concerning the Hyderabad Metro Rail project, with expectations to complete them within the year.

(With inputs from agencies.)