Larsen & Toubro (L&T) on Friday reported a 46 per cent jump in consolidated net profit to Rs 893 crore for the first quarter of this financial year as tax expenses fell and its associates/ joint ventures made lower losses. The company had reported a net profit of Rs 683 crore in the year-ago quarter. The company’s total income in the June quarter increased 10 per cent to Rs 24,374.64 crore compared to Rs 22,179.59 crore a year ago. India’s largest engineering and construction conglomerate said it won new orders of
Rs 26,352 crore during the quarter of which international orders comprised or Rs 7,885 crore. Its overall order book stood at Rs 2.62 lakh crore at the end of June, about 2 per cent higher than a year ago. “Q1 FY18 witnessed lower economic growth in the country in the aftermath of demonetisation,” the company said in a statement. However, “prospects of a good monsoon, rural wage growth, pay hike for state government employees, lower lending rates and a modest pick-up in external demand are expected to catalyse GDP growth,” it added.
It further said that the company’s focus would be on “selective order intake, working capital reduction, cost optimization” which makes it “optimistic of its growth aspirations in the medium term.” During a press briefing, L &T’s chief financial officer R Shankar Raman reiterated the company’s guidance of 12-14 per cent order inflow growth in fiscal 2018, and revenue growth in the region of 12 per cent.
The infrastructure segment, L&T’s largest segment, reported a 16 per cent rise in revenues driven by better project execution, the company said. However, the segment reported a smaller operating profit growth of 3.3 per cent because of delayed approvals. Overall, six out of the eight operating segments for the company reported an improvement in earnings.
Its power segment recorded customer revenue of Rs 1,763 crore during the quarter, while heavy engineering business achieved revenue of Rs 625 crore registering a decline of five per cent over the corresponding quarter of the previous year. L&T shares closed 1.96 per cent lower at Rs 1,159.10 on BSE on a day when the Sensex closed 0.23 per cent down. Earnings were announced after the markets shut.