L&T Q1 net up 16 pc at Rs 864 crore

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Engineering & construction major Larsen and Toubro (L&T) on Monday reported 15.7 per cent rise in net profit at Rs 863.65 crore for the quarter ended June 30 on higher revenue.

The company had clocked Rs 746.15 crore net profit in the April-June quarter of the last fiscal, it said in a statement.

L&T's net revenue went up by 26 per cent during the reported quarter to Rs 11,956.36 crore over Rs 9,482.11 crore in the year-ago period.

The engineering and construction segment contributed Rs 10,441 crore to the total revenue followed by electrical and electronics division at Rs 723 crore.

Machinery and industrial products segment's contribution to the total revenue was Rs 556 crore. The rest came from 'other' segments, it said.

Shares of the company were trading at Rs 1,370.10 apiece during afternoon on the BSE, down 1.44 per cent over the previous closing.

L&T received Rs 19,594 crore orders during the quarter taking the total to Rs 1,53,095 crore as on June 30, 2012, it said.

"Order inflow at Rs 19,594 crore recorded an impressive year-on-year growth of 21 per cent, despite the weak investment sentiment and prevailing global uncertainties," L&T said.

The major orders came from infrastructure, building and factories, and power transmission and distribution sectors.

On the outlook, L&T said," Delayed policy measures, slowdown in industrial production, elevated interest rates and liquidity concerns have moderated the growth prospects in the domestic economy."

"This together with the uncertainties in the global markets, have impacted the investment sentiment, restricting thereby the business opportunities for capital goods industry," it added.

However, it said, the ensuing months could witness renewed focus on economic reforms for improving the investment momentum and attracting capital inflows.

On the international front, select markets in the Middle East, South East Asia and CIS countries hold promising prospects, it added.

"With its enhanced capacities and presence in the diverse sectors, the company is in a good position to harness the opportunities as they emerge. The superior execution capabilities and growing order book provide visibility to sustained revenue growth in the medium term," L&T said.