L&T posts 11 percent Q3 net profit growth

Engineering and construction conglomerate Larsen and Toubro (L&T) Wednesday posted a net profit growth of 10.6 percent at Rs.1,241 crore for the third quarter ending December over the same quarter a year ago.

Revenues jumped 11.8 percent year-on-year to Rs.14,387.5 crore in the quarter ended December 2013.

With the exceptional gain on dilution of part stake in a subsidiary company, adjusted profit after tax went up over 22 percent during the quarter. L&T transferred hydrocarbon business to its subsidiary L&T Hydrocarbon Engineering with effect from April 1, 2013.

The company's revenue growth was limited by downslide in the power, and metallurgical and material handling businesses.

Revenues from the power business declined 30 percent over the corresponding quarter of the previous year, to Rs.1,211.6 crore.

Infrastructure business revenues in the quarter rose 21.5 percent to Rs.8,908.46 crore.

"Multiple unresolved sectoral issues" resulted in the near-halt in order inflows to the power segment, the company said.

Order book for the power segment dropped 14 percent to Rs.15,030 crore during December quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 33 percent Rs.1,675 crore and operating profit margin expanded 180 basis points to 11.6 percent compared to the same quarter a year ago.

International orders in the quarter in question more than doubled to Rs.8,237 crore, on the back of big orders from the Middle-East.