L&T net jumps 17% Rs 4,000-cr capex this year

Larsen and Toubro’s (L&T) standalone net profit for the fourth quarter ended March 31 jumped by 17.25 per cent to Rs 1,686 crore, despite a surge in commodity prices and raw materials.

Net sales in the quarter was Rs 15,078 crore, as against Rs 13,375 crore in the last quarter of the earlier year. The net profit included Rs 227 crore arising out of sale of its associate company in the fourth quarter and also a partial sale of a strategic investment.

Its earning before interest, tax, depreciation and amortisation (Ebitda) grew 14 per cent in the fourth quarter of 2010-11, to Rs 2,341 crore. The company said order inflow in the quarter went up by 27 per cent, to Rs 30,313 crore, as against Rs 23,843 crore in the last quarter of 2009-10. The total order book at the end of 2010-11 was Rs 1,30,217 crore, an increase of 15 per cent over that of 2010-11.

Of the total order inflow, the infrastructure sector contributed to 38 per cent, followed by the power and process sector at 32 per cent and 16 per cent, respectively. At seven per cent contribution to the order inflow, L&T said the hydrocarbons sectors ‘disappointed’.

A M Naik, chairman and managing director, said: “We believe that in the current year, the order intake will increase by 15-20 per cent and revenues should go up by 25 per cent.”

He said despite the challenging environment, L&T notched a 15 per cent growth in its order book and would continue with the performance. He said, “While there will be pressure on the margins, we are exercising cost control measures that will help in maintaining these.”

Naik said the company would spend close to Rs 4,000 crore for its capital expenditure this year and not need any additional fund raising for those. Y Deosthalee, Chief Financial Officer, said, “We are not raising any money in 2011-12 and we have enough cash to fund all projects.” The company had Rs 7,600 crore in cash and cash equivalents on March 31. Debt at the consolidated level was Rs 30,000 crore, and Rs 7,000 crore at a standalone level.