Larsen & Toubro Ltd (L&T), for the third quarter ended December 31, 2012, has reported 13 per cent growth in net profit despite sluggishness in the economy and an investment-shy climate. The company reported a net profit of Rs. 1,122 crore as compared to Rs. 991.5 crore in the same period last year.
During the quarter, the company’s gross revenue increased by10 per cent to Rs. 15,581 crore from Rs 14,140 crore in the same period last year. For the nine-month period, the company reported a net profit of Rs. 2,926 crore as against Rs. 2,536 crore in the same period last year, up 15 per cent. Total revenue for the nine months increased by 17 per cent to Rs. 40,987 crore from Rs. 35,092 crore in the year-ago period.
The upward trend in order inflow was sustained during the third quarter, and the company had an order inflow of Rs. 19,545 crore, up 14 per cent as compared to the same period last year. International order inflow contributed 22 per cent of the total order inflow in this quarter and major orders came from building and factories, infrastructure and power transmission and distribution sectors. The order book, as of December 2012, stood at Rs. 162,334 crore — out of which international order book constituted 13 per cent.
“We tried to live up to expectations despite challenging times and we continued the momentum project delivery and order booking. And we stay in course of the guidance for this year,” said K. Venkataramanan, CEO and Managing Director.
“L&T numbers at earnings level were higher than expected but revenue growth was much lower. EBITDA margins were down 20 basis points year on year. Order intake was healthy,” Sanjeev Zarbade, Vice-President- Private Client Group Research, Kotak Securities, said.
On the outlook, L&T chief financial officer R. Shankar Raman said, “Speedy implementation of proposed reforms and follow-through policy measures hold the key for rediscovery of growth momentum. With strong order book, the company expects to sustain its growth in the period ahead.”
After the announcement of the results, the L&T stock witnessed buying momentum and closed with a gain of 1.56 per cent at Rs. 1585.50 on the BSE.