Larsen & Toubro (L&T) today reported a 15.56 per cent jump in consolidated net profit at Rs 995.90 crore for the September quarter even as it said the investment climate remained “subdued” during the period.
The company said financial markets remained volatile and it will take time for the business activity to pick up.
The engineering and construction major had reported a net profit (after tax, minority interest and share in profit of associates) of Rs 861.75 crore in the July-September quarter of the last fiscal.
“Financial markets… remained volatile and the overall investment climate stayed subdued during the quarter… The ground level inputs indicate that it may take further time for significant pick up in business opportunities,” L&T said.
Its net sales increased by 10.55 per cent to Rs 23,393.22 crore in the second quarter as against Rs 21,159.35 crore.
“Larsen & Toubro recorded consolidated gross Revenue of Rs 23,605 crore for the quarter ended September 30, 2015, registering a YoY growth of 11 per cent. The international revenue during the quarter at Rs 7,658 crore constituted 32 per cent of the total revenue,” it said.
The company’s total expenses soared to Rs 21,495.13 crore during the quarter under review as against Rs 19,373.65 crore in the corresponding quarter a year-ago.
It said “slowing global economies, depressed commodity prices, weakening currencies and capital outflows are constraining the growth prospects of emerging economies” and added uncertainties in the financial markets and excess capacities have also impacted the investment sentiment.
On the government’s development agenda through reform process and public expenditure the domestic macroeconomic parameters showed some early indications of recovery along with pick up in industrial production indices, and softening inflation and interest rates during the quarter, it said.
The infrastructure major said given its large order book, it is focusing on profitable execution and is optimistic about sustaining the performance in the near-term and also about its potential to gain from the emerging prospects as the economic environment improves.
“The company secured fresh orders worth Rs 28,620 crore at the group level during the quarter ended September 30. The international order inflow during the quarter at Rs 10,973 crore constituted 38 per cent of the total order inflow. Major orders during the quarter were secured by the Infrastructure segment,” it said.
Consolidated order Book of the group stood at Rs 2,44,097 crore as on September 30, higher by 14 per cent on an YoY basis with international order book constituting 28 per cent of the order book.
Infrastructure segment achieved customer revenue of Rs 10,668 crore for the quarter registering a YoY growth of 11 per cent. International sales constituted 30 per cent of the total customer revenue of the segment during the quarter.
During the quarter, infrastructure segment secured new orders aggregating to Rs 16,682 crore.