Friday, July 17, 2009

Larsen & Toubro (L&T) Net Profit Up 13 Pct in Q1

. Friday, July 17, 2009

By stockOzone team

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.

Disclosure: Author does not own any of the stocks discussed here.

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