L&T profit up 41% on high margins

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Engineering and construction major Larsen & Toubro Ltd on Wednesday said its net profit increased by 41 per cent in the second quarter of the current financial year at Rs 201.22 crore backed by improved profit margins. Addressing mediapersons here, the company's Chairman and Managing Director A M Naik said L&T envisages higher sales growth on "good order backlog position" in the second half of the current financial year as well as in the medium term.

Naik said profit margins across segments "" engineering and construction, electrical and electronics and machinery and industrial products "" have gone up significantly.

"Profit margins in engineering and construction segment, electrical and electronics and machinery and industrial products segments have gone up to 8.5 per cent from 5.4 per cent, 17.7 per cent from 15.6 per cent and 16.7 per cent from 12.2 per cent respectively in the reporting quarter over the same quarter last year," he said.

Gross sales of the company for the quarter went up to Rs 3,804 crore as against Rs 3,382 crore in the corresponding quarter of the previous year. The engineering and construction segment contributed Rs 2,749 crore to the volume.