Engineering major Larsen & Toubro (L&T) today reported a 46.41 per cent increase in net profit at Rs 892.54 crore for the quarter ended June 30 mainly on the back of improved order execution.
The company had posted net profit of Rs 609.6 crore in the corresponding period a year ago.
Its total income in the quarter under review increased 9.67 per cent to Rs 23,989.79 crore, as against Rs 21,873.8 crore in the year-ago period.
"Though the investment cycle is still lacklusture and banks continue to face NPAs, we have been able to perform well this quarter. Transition to GST, implementation of RERA and the insolvency and bankruptcy code demonstrate the government's will to carry out structural reforms to boost growth and bring in financial prudency and propriety," company's Group Chief Financial Officer R Shankar Raman told reporters here.
During the quarter, the company won new orders worth Rs 26,352 crore at consolidated level, which was nearly 11 per cent lower as compared to Q1 FY 2016-17.
"The April-June quarter shows an 11 per cent decline as compared to corresponding period last fiscal mainly because Q1 FY17 recorded a lumpy order in our hydrocarbon business. Nonetheless, the order inflow this quarter is almost 10 per cent higher as per our internal expectations," he said.
L&T's consolidated order book stood at Rs 262,860 crore as on June 30, 2017, marginally higher by two per cent on a y-o-y basis. International order book constituted 26 per cent of the total order book.
"Infrastructure sector was a largest contributor to the orders we bagged this quarter at Rs 14,961 crore. We continue to see this segment growing considering the initiatives taken by the public sector, especially, to give a push to the projects," company's CEO and Managing Director SN Subrahmanyan said.
When asked whether the company was confident about achieving the revenue and order inflow guidance of 12 per cent and 12-14 per cent, respectively, Subrahmanyan said, "going by the momentum where we are cautiously optimistic, we will maitain our guidance for the year."
Its power segment recorded customer revenue of Rs 1,763 crore during the quarter, while heavy engineering business achieved revenue of Rs 625 crore registering a decline of five per cent over the corresponding quarter of the previous year.
The company's electrical and automation business recorded a revenue of Rs 1,206 crore during the quarter, while its hydrocarbon segment's revenue stood at Rs 2,546 crore registering a growth of 19 per cent and IT and technology services Segment achieved revenue of Rs 2,536 crore during the quarter ended June 30, 2017.
L&T's financial services segment's revenue stood at Rs 2,294 crore driven by growth in loan assets and disbursements in the focused business, while the the dvelopmental projects business registered an income of Rs 827 crore.
Its business segment comprising metallurgical and material handling, realty, shipbuilding, construction and mining equipment and industrial machinery and product businesses registered a revenue of Rs 1,653 crore.
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