Net sales increased marginally to Rs 3,405 crore during the period from Rs 3,317.7 crore last year. The profit before tax at Rs 33.37 crore was drastically lower as compared to Rs 186 crore last year.

The L&T scrip, which opened at Rs 158.50, shed 5.4 per cent on Monday on the NSE to close at Rs 149.90.

"The performance reflects the extremely unfavourable business conditions affecting the engineering and construction (E&C) segment and the cement segment, which together accounted for 86 per cent of the sales, during the period," the company said in a press release.

The E&C segment continues to be a major business segment contributing 56 per cent of the sales of the company during the first half. The segment, however, could not significantly contribute to the profitability as several jobs have not reached the threshold levels for invoicing as well as for accounting the margins, the company said.

The performance of the segment has been affected by lack of investment demand. The capital goods sector has been the worst-hit, with several industries in the sector reporting negative growth during the period, the company said.

The cement sector accounted for 30 per cent of the company sales during the period, with sales of cement/clinker amounting to 5.41 million tonne as against 4.68 million tonne last year, representing a 16 per cent growth as compared to the industry growth of 3 per cent. "Business environment continued to be very unfavourable with sales realisation falling and the input costs, especially power and fuel, rising," the company added.

Giving the outlook, the company said that with the central government seriously concerned about the slowdown in economic growth, faster pace in reforms is expected in the near future.