Engineering and construction firm Larsen & Toubro (L&T) has reported a weaker-than-expected 8.7 per cent rise in consolidated net profit for the third quarter at Rs 867 crore against Rs 797 crore profit in the October-December quarter of last fiscal. The L&T scrip fell by 6.61 per cent to settle at Rs 1,573 on the BSE as the results disappointed the markets.
On a standalone basis, the company reported 15 per cent year-on-year (y-o-y) decline in net profit at Rs 1,060 crore for the third quarter ended December 2014-15 against a profit of Rs 1,241 crore in the year-ago quarter.
Net sales grew 4 per cent at Rs 14,995 crore on a y-o-y basis. Its profits were dented by lower operating income, higher depreciation and interest costs.
The company’s revenue grew 9.6 per cent to Rs 24,033 crore in which international business contributed Rs 6,400 crore. Consolidated order-book of the company stood at Rs 225,788 crore as on December 31, higher by 17 per cent. International orders constituted 25 per cent of the total order-book.
“The company, with its leadership position in multiple sectors and inherent capabilities, is well poised to capitalise on the upcoming business opportunities, particularly in infrastructure, power and defence sectors, which are likely to benefit from the government’s thrust,” it added.
L&T chief financial officer R Shankar Raman said the company was cautious about the rate of growth for this fiscal year despite improving domestic sentiment, since investment momentum was yet to recover strongly. “Roads, power and metallurgy segments will continue to drag down topline while transport, infra, water and renewables will drive topline going ahead,” he said.