L&T's net up 46% at Rs 610 cr

Says it is cautiously optimistic on India's outlook

Engineering and infrastructure major L&T’s net for the quarter ended June was up 46 per cent at Rs 610 crore against Rs 419 crore for the corresponding quarter of the previous year. However, when compared against the Bloomberg estimate of Rs 799 crore, numbers have disappointed estimates.

The gross revenue at Rs 21,874 crore, was up 9.1 per cent year-on-year. But, it was still below the Bloomberg estimate of Rs 22,515 crore. Fresh orders won during the quarter stood at Rs 29,702 crore, up 14 per cent y-o-y. Of the total, international orders accounted for Rs 13,211 crore, an increase of around 44 per cent.

The consolidated order book as on June 30 stood at Rs 2,57,427 crore, up 8 per cent y-o-y. The Ebidta was up 16 per cent, at Rs 1,910 crore.

Infrastructure segment achieved revenue of Rs 9,094 crore, a y-o-y growth of 9 per cent, on the back of jobs under execution in heavy civil infrastructure, transportation infrastructure among others. International revenue constituted 33 per cent of the total customer revenue.

However, the electrical and automation segment recorded revenue of Rs 993 crore, a 3.2 per cent decline on y-o-y basis.

The company in its outlook said the investment climate in India is yet to gather pace, particularly in the private sector. High corporate debt levels, balance sheet challenges of banks weak industrial and rural demand and sluggish exports are posing hurdles to the investment momentum. Both central and state government led push to capital expenditure holds the key to accelerate the growth engine.

Good progress and pay revisions for government employees are expected to spur household demand.

On the international front, the company will continue to target select prospects in the space off core infrastructure and oil and gas sector in the Middle East, Africa and other neighbouring countries.

The company has recently finalised its strategic plan for five years with a focus on profitable growth.