L&T net declines 27 percent in Q4

Diversified group Larsen & Toubro (L&T) on Saturday posted a decline of 27 percent in its net consolidated profit for the fourth quarter of 2014-15 at Rs.2,070 crore.

Its net profit, during the corresponding period in 2014, was Rs.2,840 crore which included a one time write-back worth Rs.664 crore on account of amortization charge of toll road projects.

Its net revenues during the last quarter of the last fiscal stood at Rs.28,023 crore - a rise of nearly four percent compared to the earning of Rs.27,024 crore in 2013-14.

For the fiscal year ended March 31, 2015, the consolidated net profit declined by nearly three percent at Rs.4,765 crore compared to Rs.4,902 crore in 2013-14.

L&T blamed challenges faced in execution of international projects in the hydrocarbon sector for the declining profitability.

Revenues for the fiscal rose by eight percent at Rs.92,005 crore against Rs.85,128 crore earned in 2013-14.

It said the consolidated order book of the group stood at Rs.232,649 crore as on March 31, 2015 which was higher by 28 percent compared to the previous year.

The infrastructure sector posted a surge by 19 percent in its revenue of Rs.43,426 crore during the fiscal, driven by progress of jobs under execution.

The company's developmental projects segment also earned Rs.5,148 crore backed by the financial services segment recording an earning of Rs.6,393 crore during the year ended March 31, 2015 which is a growth of 24 percent compared to 2013-14.

Sectors comprising of power, metallurgical & material handling, heavy engineering and hydrocarbons were hit during the year.

The company, in a statement, said subdued investment climate during 2014-15 limited opportunities for capital goods and infrastructure sector in India.

"Initiatives which could potentially trigger investment interest in core sectors were time consuming. The government is expected to address the policy hurdles by accelerating decision making and by enhancing the ease of doing business," it said.

It also said that the global recovery has been slow.

"Sharp decline in oil prices and persisting geo-political uncertainties in the Middle East Region have impacted the investment momentum. Several currencies have depreciated against the USD causing changes in the competitive landscape," the company said.