L&T net up 15.6%, but margins dip on forex losses

Infrastructure major Larsen & Toubro (L&T)’s net profit rose 15.6 per cent to Rs 863.6 crore for the quarter ended June. The company’s net profit for the corresponding period last year stood at Rs 746 crore.

L&T’s net sales rose 26 per cent to Rs 11,955 crore, compared with Rs 9,482 crore in the year-ago period, while other income stood at Rs 606 crore, aided by dividend income from subsidiary companies and treasury gains. At 11.3 per cent, the company’s overall margin was hit by foreign exchange losses of Rs 267 crore.

L&T’s order inflows for the quarter rose 21 per cent to Rs 19,594 crore. About 25 per cent of these orders were deferred from the previous quarter. “The remaining 75 per cent are new orders. Most of the orders this quarter are accounted for by the transportation, buildings and factories segment, which is dominated by the private sector,” said Chief Financial Officer Shankar Raman.

Chief Executive Officer K Venkataraman said substantial orders were expected this year. “There are trade corridor projects to be finalised, and so are metro line orders. On the non-infrastructure side, a number of contracts are being opened, and we can expect some orders in the future as well,” he said.

L&T has signed a joint venture with government-owned ship building yard Mazagon Dock. “It is a welcome step by the government, and orders would start coming during the course of the year,” said Venkataraman.