Larsen & Toubro has reported a six per cent drop in its gross sales revenue during the quarter ended December 31, 2009 at Rs. 8,139 crore against Rs. 8,699 crore in the year-ago period. Sales revenue remained subdued as a result of slower progress of certain jobs due to various extraneous factors as well as the effect of delayed financial closure of a few infrastructure projects.
The net profit after tax has from ordinary activities grew by 15 per cent to Rs. 696.27 crore for the quarter against Rs. 604.11 crore in the year-ago period. However, there was a credit of only Rs. 62.55 crore under extraordinary items which represented a proportionate reversal of the provision made in the previous year on the company’s investment in the shares of Satyam Computer Services pursuant to sale of a part of its holding in that company during the quarter. In the same quarter in the previous year, extraordinary items accounted for a larger credit of Rs. 916.33 crore.
After taking into account these factors, the drop in net profit is more than 50 per cent at Rs. 758.82 crore against Rs. 1,520.44 crore. The company garnered a sizable quantum of fresh orders during the quarter under reference registering a growth of 22 per cent in order inflow over the year-ago period.