Larsen & Toubro net profit rises 12% in third quarter

22 Jan 2014

Engineering and construction major Larsen & Toubro Ltd (L&T) has posted a 12-per cent increase in quarterly net profit, as overseas revenue offset the impact of a slowing domestic economy.

The recurring profit after tax (PAT) for the October-December 2013 quarter stood at Rs1,136 crore, an increase of 12 per cent over the Rs1,013 crore net profit in the corresponding quarter of the previous year.

After considering the exceptional gain on dilution of part stake in a subsidiary company, the overall PAT grew by 22 per cent during the quarter.

The results for the quarter and nine months ended 31 December 2013 does not include the performance of the hydrocarbon business segment, which has been transferred with effect from 1 April 2013 to L&T Hydrocarbon Engineering Limited, a wholly owned subsidiary of the company.

Larsen & Toubro also reported a similar 12 per cent increase in gross revenue at Rs14,534 crore for the quarter ended 31 December 2013, with progress on various jobs under execution.

Gross revenue for nine-month period April-December 2013 grew 9 per cent year-on-year to Rs36,934 crore.

L&T said order inflow during the October-December 2013 quarter rose 21 per cent to Rs21,722 crore, sustaining the growth during the first half of the current year, despite prevailing weak investment climate.

Major orders came from the infrastructure segment. International order inflow during the quarter stood at Rs8,237 crore, more than doubled on the back of major orders secured in the Middle East.

The cumulative order inflow for the nine months period April-December 2013 stood at Rs67,371 crore, registering a 23 per cent growth over the nine-month period of the previous year.

Order book for the nine-month period ended 31 December 2013 grew 13 per cent year-on-year to Rs171,184 crore.

International order book constituted 15 per cent of the total order book.

L&T, which lays roads, constructs ships, develops real estate and makes power plant equipment, has been looking to boost overseas sales as the domestic economy grows at its slowest pace in a decade.