Mumbai: Larsen and Toubro Ltd (L&T), India’s largest engineering and construction company, on Wednesday reported an 18.55% increase in net profit during the March quarter due to higher sales, beating analyst expectations.
Consolidated net profit in the three months ended 31 March stood at Rs.2,453.64 crore from Rs.2,069.64 crore in the year earlier quarter. Net sales rose 18.51% to Rs.32,812.24 crore fromRs.27,687.12 crore in the year ago quarter.
Sixteen analysts polled by Bloomberg expected the company to report fourth quarter consolidated net profit of Rs.1,863.70 crore while 18 analysts expect the company to report consolidated net sales of Rs.30,248.90 crore.
L&T garnered fresh orders worth Rs.1,36,858 crore at the group level during the quarter. The consolidated order book of the group stood at Rs.2,49,949 crore as of 31 March, higher by 7% on a year-on-year basis, with international orders constituting 28% of the total. Order inflows, however, fell 9% during the March quarter compared with the year ago period.
“The domestic market continues to hold promise for revival of growth. Private sector and industrial capex is likely to take time to revive as investment sentiment is weak. Execution conditions remain challenging, mainly due to limitation of the projects/ clients to raise finances and slower clearances for land and environment. Banking system was stretched in corporate lending”, the company said in a release to BSE.
Growth momentum in the infrastructure segment rests mainly on the government initiatives in the core infrastructure such as transportation, power t&d (transmission and distribution), defence, smart cities and water projects. Defence opportunities could materialize if the policy framework for private sector participation is rolled out”, the company added.
The board approved a dividend of Rs.18.25 per share.
On Wednesday, L&T closed at Rs.1,291.30 on BSE, up 4.02% from previous close while India’s benchmark Sensex Index rose 2.28% to close at 25,881.17 points. The earnings were announced after markets closed.