Infrastructure major Larsen & Toubro on Tuesday reported an 84% year-on-year rise in Q2FY17 net profit to R1434.63 crore, helped by a divestment gain of its general insurance business, other income and lower finance costs. Adjusting for the one-time gain, profits grew at 41% year-on-year to R1,032 crore.
Total order inflow during the quarter increased 11% y-o-y to R31,119 crore. The order book for the group also increased 4% y-o-y with a total order book of R2.51 lakh crore. The top line for the quarter increased 8.2% y-o-y to R25,010.70 crore, boosted by the company’s infrastructure, power, hydrocarbon and financial services business lines.
A survey of analysts by Bloomberg had expected L&T to report a profit of R783.90 crore on net sales of R24,057.70 crore. EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 7.9% to R2,298 crore.
The bottom line was boosted by an increase in one-time gains to R402.43 crore compared with R45.69 crore a year ago. Other income jumped 49.6% to R481.3 crore y-o-y, while finance costs also declined 19.8% to R351.7 crore.
L&T’s CFO Shankar Raman said the international business had done well while the outlook on the domestic front was still challenging. Nonetheless, L&T stuck to its revenue forecast of 12-15% for the current financial year as well as a 15% order inflow guidance. “We still have another six months to go. We believe we can deliver on our stated guidance. We’ll give it our best shot,” Raman told a gathering of reporters in Mumbai.
While some large orders were deferred in the defence sector, the company said that revenue from its infrastructure segment, it’s largest vertical, grew 6% to R11,332 crore.
SN Subrahmanyan, deputy MD and President, L&T said the company had bagged a majority of its orders in roads, railways, nuclear, power distribution and transmission as well as in the hydrocarbons sectors. On the demonetisation move, he said that it would have an immediate impact on the infrastructure and construction sectors and which could last till the next two quarters.
“However, this is a positive move in the longer term,” he added.