Infrastructure giant Larsen and Toubro (L&T) Wednesday reported a 28.36 per cent year-on-year rise in consolidated net profit to Rs 2,593.41 crore for the quarter ended September on strong order inflows.
It had posted a profit of Rs 2,020.30 crore in the year-ago quarter.
The company's revenue rose by 21 per cent to Rs 32,081 crore in the quarter under review.
L&T chief financial officer and whole-time director R Shankar Raman told reporters here that the company is hopeful of to get majority orders from the public sector, however, is cautious on private sector investments in view of increased economic volatility.
The company retained its forecast of 12-15 per cent increase in revenue and 10-12 per cent increase in order inflows in the current financial year.
"We're likely to meet our forecast as the government spending on infrastructure will increase ahead of the general elections," Raman said, adding, "We are confident internally and don't see any reason to doubt our ability to meet the guidance."
He said most of the firm's large orders were booked in the first half of FY19, and during the September quarter, its order inflow was up by 46 per cent at Rs 41,921 crore.
Raman further said that sectors like infrastructure, hydrocarbon, heavy engineering and power businesses largely contributed to the growth in order inflows.
He noted that the investment by private sector remains cautious with increased economic volatility in terms of hardening commodity prices, weakening rupee, rising crude oil prices, tight liquidity in the financial markets, coupled with unevenly distributed monsoon.
Infrastructure segment secured orders of Rs 23,406 crore during the September quarter, a 69 per cent rise over the year-ago quarter.
Raman said the power sector is still underperforming sector for the company.
The power segment recorded a customer revenue of Rs 1,059 crore, a fall of 36 per cent over the same quarter last year, mirroring a depleting order book.
Raman pointed out that the 'Make for India' initiative by the government, especially in defence, is yet to create an impact due to various embroils.
Fiscal pressures and increased current account deficit (CAD) are adding to the uncertain economic environment, he added.
However, the company sees opportunities in private sector capex in the Middle East, Asean region and African countries, he added.
The company's stocks ended 2.11 per cent higher at Rs 1298.35
apiece on the BSE Wednesday, against 1.63 per cent rise in the benchmark.
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