L&T spurts after announcing good Q4 results

L&T jumped 8.46% to Rs 1,400.50 at 9:25 IST on BSE after the company reported 18.55% rise in consolidated net profit to Rs 2453.64 crore on 17.88% rise in total income to Rs 33375.26 crore in Q4 March 2016 over Q4 March 2015.

The announcement was made after market hours yesterday, 25 May 2016.

Meanwhile, the BSE Sensex was up 116.73 points, or 0.45%, to 26,001.09.

On BSE, so far 1.91 lakh shares were traded in the counter, compared with an average volume of 1.99 lakh shares in the past one quarter. The stock hit a high of Rs 1,436.45 and a low of Rs 1,389.75 so far during the day.

L&T said that the order inflow during Q4 March 2016 was Rs 43334 crore of which one third constituted international orders. The order intake of L&T's infrastructure division rose just 3% at Rs 29103 crore in Q4 March 2016 over Q4 March 2015. The order intake of its hydrocarbon divsion rose sharply to Rs 4963 crore in Q4 March 2016 from Rs 699 crore in Q4 March 2015.

L&T's order book stood at Rs 249949 crore as at 31 March 2016, higher by 7% on year-on-year basis. International order book constituted 28% of the total order book.

The company's consolidated net profit rose 6.83% to to Rs 5090.53 crore on 11.53% rise in total income to Rs 103814.72 crore in the year ended 31 March 2016 over the year ended 31 March 2015.

L&T garnered fresh orders worth Rs 136858 crore at consolidated level in the year ended 31 March 2016. The international orders during the year at Rs 43956 crore constitute 32% of the total order inflow, L&T said. 62% of the total order inflow during the year was secured by the infrastructure segment, the company said in a statement.

In its outlook, L&T said that the domestic market continues to hold promise for revival of growth. Private sector and industrial capex is likely to take time to revive as investment sentiment is weak. Execution conditions remain challenging, mainly due to the limitation of the projects/clients to raise finances and slower clearances for land and environment. Banking system was stretched in corporate lending, it added.

Growth momentum in the infrastructure segment rests mainly on the government initiatives in the core infrastructure such as transportation, power T&D, defence, smart cities and water projects.

On the international front, Asia, Middle East and Africa are seeking investment led growth. Global slowdown of under utilized capacities amongst EPC players have created opportunities for project implementation at competitive cost. Priority projects will receive Government sponsorship and multilateral funding.

Meanwhile, the company continues emphasis on operational efficiencies, faster execution of projects on hand and reduced working capital levels. Given track record, diversified portfolio and healthy order book, the company is focusing on profitable execution and is confident of growth in the near to medium term by leveraging presence in both the domestic and international segments.

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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