L&T Q1 net up 12% at Rs 746 cr

Engineering conglomerate Larsen & Toubro (L&T) today reported a 12% growth in its standalone net profit at Rs 746.15 crore for the first quarter ended June 30, on better execution and healthy flow of orders.

The company had reported a net profit of Rs 666.17 crore during the same quarter last fiscal.

Net sales of the company stood at Rs 9,482.61 crore, registering growth of 21.08% during the quarter under review as compared to Rs 7,831.19 crore of the year-ago period, the company said in a filing to the Bombay Stock Exchange (BSE).

"In the current scenario of moderating growth momentum in the economy, the company garnered fresh orders of Rs 16,190 crore, taking its order book to Rs 1,36,172 crore as on June 30, 2011," the company said in a separate statement.

It added that most of the orders came from buildings and factories, infrastructure, power, hydrocarbon and metals and mining sectors.

Engineering and construction business of the company registered a growth of 23% during the quarter at Rs 8,018 crore and bagged orders worth Rs 14,416 crore during the quarter, the statement further said.

However, revenues from its electrical and electronics business went down marginally at Rs 695 crore during April-June period due to "steep increase in input price", increased competition which prevented price hike and lower volumes, the statement said.

The revenues from machinery and industrial products business of the company went up by 25% at Rs 666 crore, posting an operating margin of 20.1% during the quarter, it added.

"Speedy implementation of various initiatives by the government for industrial and infrastructure development holds the key to an accelerated growth momentum," the company said in its outlook for the quarter.

It added that it was in a good position to harness the available opportunities with its large order book and was confident of maintaining its growth momentum in the medium term with its proven track record.

Scrips of the company closed today at Rs 1,629.85 on the BSE, down 0.62% amid weaker sentiments in the markets.