Larsen and Tourbo Q1 net profit up over 2-fold on disinvestment gain

Written by PTI | Mumbai | Updated: Jul 28 2014, 23:47pm hrs
LTLarsen and Toubro today reported an over twofold rise in consolidated net profit.(Reuters)
Larsen and Toubro today reported an over two-fold rise in consolidated net profit at Rs 967 crore for the April-June quarter, buoyed by a Rs 1,382-crore gain on disinvestment.

The engineering and construction major had reported Rs 458.59 crore net profit in the first quarter of the last fiscal, it said in a statement.

"During the quarter ended June 30, 2014, the Group divested its stake in a joint venture under its development projects portfolio and in subsidiaries of its realty business.

The other operational income, forming part of the revenue from operations, for the quarter ended June 30, 2014 includes a gain of Rs 1,38,176 lakh pursuant to these divestitures," it said.

Net sales of the company rose to 18,974.75 crore compared to 17,241.14 crore.

The company received Rs 33,408 crore order during the reporting quarter, including Rs 14,574 crore from overseas.

"Major orders during the quarter were secured by infrastructure, hydrocarbon and heavy engineering segments," it said.

Consolidated order book of the group stood at Rs 1,95,392 crore as on June 30. International orders constitute 26 per cent of the total kitty.

"Notwithstanding the improved sentiment, the domestic business environment and investment cycle continued to remain subdued during the quarter ended June 30," it said on the business outlook.

However, it added that the domestic market holds large potential awaiting impetus through policy measures and conducive investment environment.

Shares of the company today closed down by 0.70 per cent at Rs 1,644.75 apiece at the BSE.

L&T sales rise as international orders jump

(Reuters) Indian conglomerate Larsen & Toubro Ltd (L&T) reported a 10 percent rise in first-quarter revenue on Monday, reflecting a big increase in orders from international customers.

Revenue came in at 191.23 billion Indian rupees ($3.2 billion) for the three months ended June 30, 10 percent higher than the same period last year and compared with a 114.99 billion mean estimate by analysts, data from Thomson Reuters showed.

L&T makes transport and military equipment and has been expanding overseas to offset weak demand at home.

International orders doubled and now constitute 44 percent of total new orders, the company said, while the new order book across its business is up 11 percent on the same period last year, helped by major infrastructure, hydrocarbon and heavy engineering orders.

"The company weathered (the) domestic slowdown by strengthening its international presence in the select overseas markets," L&T said in a statement.

Consolidated recurring profit after tax came in at 7.71 billion rupees, up 68 percent from last year, L&T said.

Executive Chairman A.M. Naik said in May he saw improvement in the business outlook after the election of a new government raised the possibility of the authorities approving a backlog of projects that has plagued the infrastructure industry.

But the prospect of a revival in domestic demand is yet to encourage infrastructure companies such as L&T to commit to new capital expenditure - central to any sustained economic recovery - because of spare production capacity, analysts said.

L&T shares have gained around 55 percent this year. They closed down 1 percent before the earnings announcement, compared with a 0.5 percent fall in the benchmark index.

(1 US dollar = 60.1300 Indian rupee)