L&T Q3 net up 39% at Rs 972 cr

L&T Q3 net up 39% at Rs 972 cr

Cuts revenue, order guidance to 10%

L&T Q3 net up 39% at Rs 972 cr

Engineering and construction major Larsen & Toubro has reported a 38.8% increase in net profit for the quarter ended December 31, 2016 at Rs 972.47 crore compared with Rs 700.34 crore in the same quarter last year.

 Total income for the company during the quarter grew 1.38% to Rs 26,286.98 crore against Rs 25,928.07 crore in the comparable period last year, the company said.

 The company garnered fresh orders worth Rs 34,885 crore at the group level during the quarter ended December 31, 2016, amid subdued business environment. The international orders at Rs 11,865 crore constituted 34% of the total order inflow. On a cumulative basis, the order inflow for the nine months period ended December 31, 2016 stood at Rs 95,706 crore. Major orders were secured by infrastructure and hydrocarbon segments, L&T said.

“During the beginning of the financial year we had given a guidance of 12-15% growth in both order inflow as well as revenue. But looking at the current situation and considering the several headwinds the sector is facing, we have lowered the targets to 10%,” group chief financial officer R Shankar Raman said. But he was quick to add that given the execution challenges on the ground, the company does not expect substantial improvement in the next couple of months.

Domestic growth appears to take longer time as investment momentum remains weak and the banking system is burdened by debt overhang. “The government’s initiatives to curb the parallel economy and make a transition to cashless economy has caused disruption whose impact on the business sentiment is yet to be conclusively assessed,” L&T said.

 “The challenging business conditions are expected to continue in the next few quarters until the government moves to lift growth through infrastructure spend and tax reforms take effect,” L&T added.