L&T net up 46 per cent, says investments yet to gather pace

L&T shares on Friday closed down 1.2 per cent at Rs 1,558 each on the BSE, ahead of the earnings announcement.

By: ENS Economic Bureau | Mumbai | Published: July 30, 2016 4:31 am
Larsen & Toubro, L&T, L&T profit, L&T quarter profit report, L&T shares, L&T Q4 report, L&T net profit, business news, india news, latest news Consolidated revenue during the period grew 9.1 per cent to Rs 21,874 crore. Of this, Rs 7,622 (35 per cent of the total revenue) came from overseas projects. (Source: Reuters file photo)

The country’s biggest engineering and construction firm Larsen & Toubro (L&T) on Friday missed analysts’ estimates by posting a consolidated net profit of Rs 610 crore for the April-June quarter, a 46 per cent year-on-year growth.

Underlining the challenging business environment, the company said that a pick-up in investment is crucial to sustain economic growth in the medium and long term. “The investment climate in India is yet to gather pace, particularly in the private sector. High corporate debt levels, balance sheet challenges of banks, weak industrial and rural demand and sluggish exports are posing hurdles to the investment momentum. Both central and state government-led push to capital expenditure holds the key to accelerate the growth engine,” L&T said in its outlook.

Consolidated revenue during the period grew 9.1 per cent to Rs 21,874 crore. Of this, Rs 7,622 (35 per cent of the total revenue) came from overseas projects.

Operating profit (Ebitda) grew by 16 per cent to Rs 1,905 crore and margin expanded by 50 basis points to 8.7 per cent YoY.

The company won fresh orders worth Rs 29,702 crore during the quarter, registering an increase of 14 per cent on a YoY basis. International orders at Rs 13,211 crore constituted 44 per cent of the total order inflow. Major orders during the quarter were secured by infrastructure and hydrocarbon segments. The consolidated order book of the group stood at Rs 2,57,427 crore as on June 30, up 8 per cent YoY. Commenting on the company’s performance, chief financial officer R Shankar Raman said the company expects a 15 per cent growth in fresh orders and a 12-15 per cent growth in revenues.

Watch Video: What’s making news

“Consequently, the growth in order book that we had projected in the beginning could be in double digits,” he said, adding, “The decision on capital spending is getting decentralised. Today, much of the developmental expenditure also revolves around the states. The congestion that centralisation brings, in future, is expected to ease. This should augur well for the whole process of awarding projects, etc.” Revenue from the infrastructure segment grew 9.2 per cent YoY to Rs 9,287 crore while the margins improved.

L&T shares on Friday closed down 1.2 per cent at Rs 1,558 each on the BSE, ahead of the earnings announcement.

For all the latest Business News, download Indian Express App

    Live Cricket Scores & Results