L&T Q3 net up 9% on infra business boost; revenue rises 10%

Engineering and construction major Larsen & Toubro today said its consolidated net profit inched up 8.77 per cent to Rs 866.54 crore in the October-December quarter on improved revenue from infrastructure business.
Revenue for the third quarter increased 9.73 per cent to Rs 23,847.86 crore from Rs 21,732.35 crore in the same period of previous fiscal.
"The improvement in revenue is mainly backed by growth in revenue in infrastructure business where investments are happening, especially in the domestic market.
"Besides, the realty and services businesses have also contributed to higher revenue, which has offset weak sales at the power, minerals and metal handling, heavy engineering and hydrocarbon segments," L&T Group Chief Financial Officer R Shankar Raman told reporters here.

The company bagged fresh orders worth Rs 34,580 crore during the quarter as against Rs 28,990 crore a year-ago, registering a growth of 19 per cent. The international order- books constituted 18 per cent at 6,300 crore.
Consolidated order-book rose 17 per cent to Rs 2,25,788 crore. International orders constituted 25 per cent of the total order-book.

"Despite challenging environment, its heartening to note domestic order placement has improved compared to last year. Order inflow from international market constituted 18 per cent while contribution from the domestic segment is improving. This indicates that the country is slowly but surely going to move in a different mode given the right environment," Raman said.

L&T's infrastructure business reported a revenue growth of 22 per cent at Rs 11,553 crore. The segment secured new orders worth Rs 24,032 crore during the reporting period.
However, the power business witnessed a 30 per cent decline in revenue to Rs 1,133 crore in Q3 due to low opening order-book and delay in receipt of new contracts.
Similarly, the metallurgical and material handling segment saw steeper decline, with sales plunging 56 per cent to Rs 690 crore on account of lower executable order book. Revenue from heavy engineering and hydrocarbon segments declined to Rs 814 crore and Rs 1,778 crore, respectively.

Raman said there are signs of softening inflation and stable commodity prices. Also the recent measures taken by the RBI are expected to ease liquidity position.
"The business sentiment has turned positive on the back of regulatory announcements and the government resolve to create a business-friendly environment in the country.
"The company, with its leadership position in multiple sectors and inherent capabilities, is poised to capitalise on the upcoming business opportunities," he said.