Better performance of its infrastructure and financial services businesses helped Larsen & Toubro Ltd (L&T) report 46% growth in consolidated net profit for the first quarter ending June 30, 2017.
The engineering and construction major’s consolidated net profit stood at ₹893 crore for the first quarter as compared with ₹610 crore in the year earlier period.
During the period, gross revenue rose 10% to ₹23,990 crore. International revenue at ₹8,233 crore constituted 34% of the total revenue, the company said.
New orders
On a consolidated basis, the company won new orders worth ₹26,352 crore despite a challenging business environment. International orders at ₹7,885 crore constituted 30% of the total order inflow. Major orders during the quarter were secured by infrastructure segment, the firm said.
Consolidated order book of the group stood at ₹2,62,860 crore as on June 30, 2017, higher by 2% as compared with the year earlier period. International order book constituted 26% of the total order book.
Infrastructure segment achieved revenue of ₹10,539 crore, up 16% driven by better project execution in transportation infrastructure, smart world communication and water and effluent treatment businesses.
International revenue constituted 32% of the total customer revenue of the segment during the quarter.
The infrastructure segment secured orders worth ₹14,961 crore during the quarter ended June 30, 2017. International orders contributed to 30% of the total order inflow of the segment during the quarter.
The power segment reported revenue growth of 2%, heavy engineering business reported 5% drop in revenue.
Revenue from electrical and automation segment rose 21% while hydrocarbon segment grew 19%. IT and Technology services segment reported revenue growth of 8%, while the financial services segment grew 10% in revenue.
In the coming quarters, the company said, its focus will be on selective order intake, working capital reduction, cost optimisation and productivity enhancement through digitalization.
“The company is optimistic of its growth aspirations in the medium term as the economic outlook improves,” L&T said in a statement.
