L&T Q3 net surges 216% at Rs 1,520 cr

Written by Corporate Bureau | Mumbai | Updated: Feb 1 2009, 03:40am hrs
Engineering and construction major Larsen & Toubro (L&T) has posted a 216% rise in net profit at Rs 1,520.44 crore for the quarter ended December 31, 2008, as compared to Rs 481.79 crore recorded during the corresponding period of the previous year.

According to a press release, net profit of Rs 1,520 crore included an extraordinary gain of Rs 916 crore (net of tax) from the sale of the companys ready mix concrete business.

Excluding this one-time income, profit after tax stood at Rs 604.11 crore, an incresae of 25%.

L&T has reported a 35% increase in total income from Rs 6,539.41 crore reported during the quarter ended December 31, 2007 to Rs 8,700 crore registered during the quarter ended December 31, 2008. L&T shares were up 4.38% on the BSE on Friday to close at Rs 689.20.

Despite an environment of tight liquidity, cautious investment in the oil and gas and the core sectors, and a general slowdown in domestic infrastructure spending, the company has been able to secure fresh orders totaling to Rs 14,620 crore during the quarter, exceeding the order inflow of Rs 13,019 crore achieved during the same quarter of the previous year when the economic climate was significantly better.

The company is well on its way towards consolidating its overseas presence, as reflected in its share of sales from international business at 18.5% for the quarter, as per the release.

L&Ts engineering and construction segment order inflow at Rs 13,379 crore registered a growth of 17% over the corresponding quarter of the previous year. The segment revenues for the quarter at Rs 7,633 crore grew by 54% year-on-year.

The electrical and electronics segment posted revenue of Rs 647 crore for the quarter, marginally exceeding its revenue for the corresponding quarter of the previous year.

Export efforts were stepped up during the quarter to supplement the sluggish domestic demand, boosting the share of international sales to 18%.

Meanwhile, machinery and industrial products segment reported a drop in revenue at Rs 529 crore for the quarter ended December 31, 2008, severely impacted by a sharp drop in capital expenditure by the Indian industry, especially the construction sector.

The segment also saw a drop in margins primarily due to squeeze on end-product prices and under-recovery of fixed costs. Performance of the segment on the export front was encouraging with exports touching 23% of its total revenue for the quarter.