L&T Reports 26% Rise In Q3 Net Profit

Mumbai, Jan 30: | Updated: Jan 31 2004, 05:30am hrs
Engineering major Larsen & Toubro (L&T) has reported a 25.7 per cent increase in net profit for the third quarter ended December 31, 2003 at Rs 101.43 crore as compared to Rs 80.67 crore for the corresponding quarter last fiscal. Net sales for the reporting quarter stood at Rs 2,917.71 crore as against Rs 2,320.72 crore for the same period last year, translating into a 25.7 per cent growth.

Driven by domestic opportunities, the engineering and construction (E&C) segment reported order booking of Rs 3,711 crore for the third quarter, a 98 per cent increase on a quarter-on-quarter basis. With this, the total order booking for the nine-month period aggregates to Rs 8,930 crore, with a growth rate of 75 per cent.

The company said that it secured the largest ever order worth Rs 922 crore from National Hydroelectric Power Corporation for civil and structural worked for the largest hydel project in the country.

Export order booking for the third quarter and the nine-month period aggregated to Rs 482 crore and Rs 1,748 crore, respectively. The E&C segment is expected to show a revenue growth of at least 25 per cent for the year.

The domestic sale quantity of cement and clinker during the third quarter increased by 4 per cent to 2.62 million tonne and export quantity has risen 25 per cent to 1.2 million tonne. Gross revenue for the quarter amounted to Rs 747 crore, showing an improvement of 10 per cent over last year and the average sales realisation sharply declined to Rs 1,142 from Rs 1,214 per metric tonne as prices continued to be weak.

The company hopes that the cement segment is expected to sustain the recent price improvement until onset of monsoon. Accordingly, the profitability should see improvement during the last quarter, the company said.

The electrical and electronics segment achieved a 16 per cent increase in gross sales revenue for the third quarter from Rs 215 crore to Rs 250 crore.