L&T, Oct 28

Defence Engineering segment, L&T, received orders worth ₹ 1,341 crore during the quarter ended September 30, 2020 which mainly includes the contract for supply of Pinaka Weapon Launcher Systems, registering substantial growth over the corresponding quarter of the previous year on a low base.

The Order Book of the segment stood at ₹ 9,132 crore as on September 30, 2020, with 16% being international. Defence Engineering segment recorded customer revenue of ₹ 765 crore registering a y-o-y decline of 20% over the corresponding quarter of the previous year due to tapering execution of a key gun order in the current year while the new orders are yet to gather execution momentum.

International Revenue constituted 26% of the total customer revenue of the segment during the quarter. The EBITDA margin of the segment at 24.4% was higher for the quarter ended September 30, 2020 as compared to the corresponding quarter of the previous year at 18.1%, reflecting the phase of jobs under execution coupled with realisation of claims in some domestic jobs and gains from operational efficiencies.

The Military communication business of Defence Engineering Segment has been transferred with effect from April 1, 2020 to Smart World and Communication business and reclassified to “Others Segment”. Accordingly, previous year figures are regrouped wherever necessary.