L&T Q3 net up 19% at Rs 1034.8 cr; investment climate cautious

Engineering and construction giant Larsen & Toubro (L&T) today reported a 19 per cent rise in consolidated net profit at Rs 1,034.8 crore for the quarter ended December 31.
The company had clocked a net profit of Rs 866.5 crore in the year-ago period, it said in a BSE filing.
Total income firm rose by 8 per cent to Rs 25,829.3 crore in the October-December quarter this fiscal from Rs 23,847.9 crore during the same quarter in 2014-15.
The firm's total expenses were, however, higher at Rs 23,799.2 crore from Rs 21,641.2 crore during the reported quarter.
The International revenue during the quarter at Rs 9,066 crore constituted 35 per cent of the total revenue.

On outlook, the company said: "Domestic economy continues to face headwinds to growth despite favourable macroeconomic factors. Tight liquidity and weak global cues have kept the markets tentative."

Steep decline in oil prices, slowing growth in China, falling commodity prices, downturn in global equity markets and significant depreciation of emerging market currencies vis-a-vis the USD have contributed to a volatile economic environment, it added.
While industrial and private sector capex has been muted, and is likely to remain so for some more time, the government is pushing infrastructure build-out through increased budgetary allocations, PSU-led spending and through bi-lateral and multi-lateral funding agencies, L&T said.

"Nevertheless, the overall investment climate remains cautious with the overhang of excess capacities in many sectors," it added.
It however, said that improved fiscal position at Central and State levels, moderated inflation, softer interest rates, increased allocations on plan expenditure, accelerated reforms and business enabling policy initiatives are expected to better the investment climate in India.
"Given its large order book, execution capabilities and proven track record, the firm stays prepared to harness the business prospects as they emerge. The company is focusing on profitable execution and is confident of its growth in the near to medium term," it added.

L&T won orders worth Rs 38,528 crore at the group level during the quarter ended December 31. The International order inflow during the quarter at Rs 11,115 crore constituted 29 per cent of the total order inflow.
Major orders during the quarter were secured by the Infrastructure segment.
Consolidated order book stood at Rs 2,56,458 crore as on December 2015, higher by 14 per cent on a YoY basis with international order book constituting 27 per cent.
Shares of the company today rose by 2.33 per cent to settle at Rs 1102.20 on BSE.