L&T Q3 net profit falls nearly 50 per cent to Rs759 crore

22 Jan 2010

Engineering and construction major Larsen & Toubro on Thursday reported a nearly 50 per cent fall in its fiscal third quarter profit at Rs758.82 crore compared with Rs1,520.44 crore in the third quarter of the previous financial year.

L&T, the country's top engineering company, also announced its first sales fall in seven years and cut its revenue growth target.

Gross sales revenue during the quarter ended 31 December 2009 was lower by 6.0 per cent at Rs8,139 crore compared with the corresponding period of the previous year, L&T said in a release.

Profit after tax from ordinary activities of the company grew 15 per cent to Rs696 crore during the quarter compared with the figures for the same period of the previous year.

L&T attributed the fall in profit to extraordinary items, which stood at Rs62.55 crore in the December 2009 quarter against Rs916.33 crore in the previous year quarter.

Extrordinary item represents a proportionate reversal of the provision made in the previous year on L&T's investment in the shares of Satyam Computer Services Ltd, pursuant to sale of its holding, L&T's quarterly statement showed.