Bags orders worth Rs. 9,571 crore
Profit excludes exceptional income of Rs. 1,020 crore
E&C division registers 18 % growth in revenue
MUMBAI: Despite general slowdown which impacted the economy in the recent past, Larsen & Toubro (L&T) has reported a 13 per cent growth at Rs. 851.35 crore in its net profit for the first quarter of 2009-10 against Rs. 755.08 crore in the same period last year. The net profit excludes an exceptional item of Rs. 1,019.88 crore earned by L&T from the sale of 11 per cent stake in UltraTech Cement early this year. However, the profit after tax including exceptional item increased by 218 per cent to Rs. 1,598.20 crore (Rs. 502.44 crore). Net sales were up 7 per cent at Rs. 7,362.71 crore (Rs. 6,901.43 crore).
Even as the capital goods and infrastructure sectors await an acceleration of investments into the core and other growth inducing areas of the economy, the company was able to bag fresh orders totalling to Rs. 9,571 crore during the quarter.
According to the company, the economic buoyancy prevailing in the early part of the previous year transformed into a cautious “wait and watch” approach, resulting in relatively lower order inflows during the quarter as compared to the corresponding quarter of the previous year. The company reported an improved operating margin of 11.3 per cent during the quarter.
The engineering and construction (E&C) division of the company had an order inflow of Rs. 8,373 crore which was lower than the same period last year. This segment’s revenue for the quarter stood at Rs. 6,573 crore, a growth of 18 per cent. The share of export revenues represented 20.6 per cent of the revenues.
Addressing a press conference here company Executive Vice President (Finance) R. Shankar Raman said “there are large orders in the pipeline which might come from ONGC and the government. ONGC is set to refurbish 14 oil wells which are around 15 years old. L&T is re-qualified to bid for these projects.”