The fall in profits of L&T was largely along expected lines. In fact, Larsen & Toubro reported a 79% fall in net profits for the Jun-20 quarter to Rs.303 crore. Total revenues for the Jun-20 quarter was 28% lower at Rs.21,260 crore. The sharp fall in sales and profits was largely on account of the COVID impact, which brought capital investment activity to a standstill.

However, the company has reported that activity has shown a sharp pick up in June after a virtual shutdown in April and May this year. L&T reported fresh orders worth Rs.23,574 crore in the June quarter, albeit 39% lower on a YOY basis. Most of the government investments have already started while private outlays may still take some more time.