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Execution gradually regaining ground amid recovery L&T’s adjusted standalone revenues (ex-E&A business) for the quarter degrew 1.3% YoY to | 19619.8 crore vs. our estimate of | 19984.8 crore. On standalone basis, infrastructure segment revenue (contributing ~77%) fell 7.9% to | 15106.8 crore YoY due to job mix and site productivity though execution improved sequentially due to higher work force mobilisation and supply chain normalisation. On a consolidated basis, adjusted revenues from continuing operations fell 1.8% to | 35596.3 crore YoY. During the quarter, standalone EBITDA margins improved 210 bps to 9.5% (vs. our estimates of 8.0%) on a YoY basis led by control on operating expenses, job mix and better performance in others segments. On a consolidated basis, EBITDA margins came in at 10.5% (vs. 11.1% in Q3FY20). Strong order inflows led by mega orders in infra segment For Q3FY21, L&T registered strong order inflows at the group level worth | 73233 crore, with strong growth 76% YoY, led by mega EPC orders won in infrastructure segment (~62% of inflows) including high speed rail (HSR), special bridge project, rural water supply scheme (MP), international order in power T&D etc. While international orders for Q3FY21 came in at | 10253 crore contributing 14% to order inflows. L&T’s order backlog at record high of | 331061 crore up 9% YoY with international orders constituting 20% of order backlog.
