L&T Q4 net rises 37 per cent; revenue growth disappoints
26 May 2006
L&T has reported a reasonably healthy rise in bottom line for the fourth quarter and full year 2005-06 but growth in top line is far less than satisfactory, considering the boom in capital goods and construction sectors.
For the quarter ended 31 March 2006, net profits increased 39.91 per cent to Rs466.85 crore from Rs333.68 crore during the previous year quarter. Total income increased 8.13 per cent to Rs4,744.97 crore from Rs4,388.02 crore during the previous year quarter.
Adjusted for extraordinary and one-time income, net profits for the quarter increased 37.32 per cent.
Operating profits for the quarter increased by 33.29 per cent while operating margins improved to 12.48 per cent from 10.1 per cent during the previous year quarter.
For the full year 2005-06, standalone net profits increased 28.75 per cent to Rs1,012.14 crore, or Rs76.05 per share, from Rs983.85 crore, or Rs77.62 per share, for the previous year. Standalone revenues increased 10.08 per cent to Rs15,198.63 crore from Rs13,807.42 crore.
During the previous year the company had realised an amount of Rs353.32 crore on sale of its stake in Ultratech Cement to Grasim Industries. During the current year, the company sold off its dairy equipment and glass containers businesses and realised an after tax profit of Rs69.75 crore.
Adjusted for these extraordinary items, net profits for the year 2005-06 increased 36.94 per cent. Other income, adjusted for extraordinary income, increased 32.62 per cent.
Operating profits increased 31.5 per cent during the year while operating margins as a percentage of net sales improved to 7.23 per cent from 6.16 per cent during the previous year.
Interest costs for the full year increased 40.11 per cent while depreciation charges went up by 21.58 per cent.
Consolidated net profits for the full year 2005-06 increased 25.51 per cent to Rs1,317.21 crore from Rs1,049.57 crore for the previous year. Consolidated revenues increased 13.17 per cent to Rs17,018.55 crore from Rs15,037.59 crore.