L&T posts 15% rise in consolidated net profit at Rs 2,560 cr in Q3

Notwithstanding the challenges in project execution in the domestic market, engineering major Larsen & Toubro (L&T) on Wednesday reported a 15 per cent rise in its consolidated net profit at Rs 2,560.32 crore for quarter to December 2019, helped by higher revenues from international contracts.

The company had reported a consolidated profit after tax of Rs 2,218.68 crore in the same period a year ago.

Its consolidated total income during October-December increased to Rs 36,717.60 crore, against Rs 34,823.08 crore in Q3 FY19.

"The revenues have increased largely on the back of execution of orders bagged in the hydrocarbon segment in the international market. Also, the exports of our goods and services in the IT&TS (information technology and technology services) business have contributed to the rise in revenues. Infrastructure business, on the other hand, faced a lot of challenges, impacting the quarterly revenues," Group chief financial officer R Shankar Raman told reporters.

He further said that the sector has faced challenges due to change in government in Maharashtra and Andhra Pradesh and few PILs regarding major projects have affected the pace of order execution.

"While the order intake in the infrastructure segment have improved significantly, change of governments has led to stoppage of work. Lower fund allocation in some states adversely impacted the execution process."