L&T Q3 net up 10.60% at Rs 1,240.70 cr

Infrastructure major Larsen and Toubro today reported 10.60 per cent rise in standalone net profit at Rs 1,240.70 crore for the quarter ended December 31, saying that "persisting inflation" and "policy uncertainties" have impacted investment sentiment.
The company had reported net profit of Rs 1,121.75 crore for the October-December quarter of 2012-13 fiscal.
During Q3, 2013-14 it demerged the hydrocarbon business into a wholly-owned subsidiary, L&T Hydrocarbon Engineering Ltd, after getting the sanction by the Bombay High Court.
Subsequently, it transferred the business to the new company from April 1, 2013 - the effective date of demerger - and has applied to the Registrar of Companies for approval.

L&T has not taken into account the sales and profit figures of the new entity for its standalone results, and has restated figures in its profit and loss account prior to March 31, 2013, the company said in a filing to the BSE.
The company's Q3 net sales rose by 11.80 per cent to Rs 14,387.51 crore after excluding revenues from the Hydrocarbon business, it further said.

Its Q3 expenditure stood at 12,911.85 crore, amounting to 89.74 per cent of the net sales. It made an exceptional gain of Rs 104.39 crore on dilution of part stake in a subsidiary firm.

In a separate statement, L&T said: "Persisting inflation, tight liquidity, elevated interest rates, and macro economic and policy uncertainties have impacted the investment sentiment in the domestic economy.
"Sliding GDP and IIP numbers are indicative of task ahead for achieving economic recovery."
Therefore, the company is strengthening its international presence in select overseas markets, it said, adding that presence in diverse sectors, healthy order book, proven track record and strong balance sheet are the key enablers for L&T to steer through the near to medium term challenges.
During the quarter, order inflow of L&T rose by 21 per cent to Rs 21,722 crore "despite prevailing weak investment climate", the company said.

Its total order book, as on December 31, 2013 stood at Rs 1,71,184 crore, up 13 per cent. Of this, international orders amounted to 15 per cent of total order book.
The company registered a 23 per cent growth in orders from infrastructure sector and secured orders worth Rs 18,390 crore. However, order inflow during the quarter from power and metallurgical & material handling (MMH) business segments declined considerably.
"Multiple unresolved sectoral issues have resulted in near halt in order inflows of the power segment, which could secure fresh orders of Rs 200 crore during the quarter ended December 31, 2013," the company said, adding that the MMH segment secured Rs 329 crore orders in the last quarter.

Ahead of the results, L&T scrip today fell 0.65 per cent to close at Rs 1,004.75 on the BSE.