L&T drops after weak Q1 results

L&T fell 3.26% to Rs 1,731.15 at 9:16 IST on BSE after consolidated net profit fell 37.3% to Rs 606.19 crore on 6.53% increase in total income to Rs 20509.53 crore in Q1 June 2015 over Q1 June 2014.

The Q1 result was announced after market hours on Friday, 31 July 2015.

Meanwhile, the S&P BSE Sensex was up 57.58 points or 0.2% at 28,172.14.

On BSE, so far 15,000 shares were traded in the counter as against average daily volume of 1.75 lakh shares in the past one quarter.

The stock hit a high of Rs 1,731.60 and a low of Rs 1,710.20 so far during the day. The stock had hit a record high of Rs 1,892.95 on 4 March 2015. The stock had hit a 52-week low of Rs 1,400 on 8 October 2014.

The stock had underperformed the market over the past one month till 31 July 2015, advancing 0.38% compared with Sensex's 1.2% rise. The scrip had, however, outperformed the market in past one quarter, surging 9.62% as against Sensex's 4.08% rise.

The large-cap company has equity capital of Rs 186.06 crore. Face value per share is Rs 2.

L&T said that its net profit for the corresponding quarter of the previous year included divestment gains of Rs 1383 crore.

L&T's gross revenue rose 7% to Rs 20460 crore in Q1 June 2015 over Q1 June 2014. International revenue during the quarter at Rs 6609 crore constituted 32% of the total revenue. The company successfully won new orders worth Rs 26376 crore at the group level during the quarter ended 30 June 2015. International orders during the quarter at Rs 8110 crore constituted 31% of the total order inflow. Major orders during the quarter were secured by infrastructure and hydrocarbon segments. The consolidated order book of the group stood at Rs 2.38 lakh crore as on 30 June 2015, higher by 22% on a year-on-year basis. International order book constituted 26% of the total order book.

L&T said in a statement that the business environment stays challenging in the short term while the prospects in urban infra, transportation infra, power transmission, water, renewable energy and defence manufacturing remain promising in the medium term. The management is hopeful of the company benefitting from the growth opportunities as they emerge. The domestic infrastructure sector awaits the translation of various policy and budgetary initiatives into a definitive capital expenditure programme. While visibility of outlay by public sector/government undertakings has improved, private sector investment in the industrial sector is constrained by weak demand, low commodity prices and under utilisation of the existing capacities, L&T said.

L&T after trading hours on Friday, 31 July 2015, announced that the company intends to participate in the offer for sale of equity shares of its subsidiary L&T Infotech. L&T proposes to sell up to 15% of the equity shares held in L&T Infotech through the offer for sale. L&T Infotech is a global IT services and solutions provider.

L&T is a major Indian multinational engaged in technology, engineering, construction, manufacturing and financial services, with global operations. Its products and systems are marketed in over 30 countries worldwide.

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