L&T beats forecast, Q1 profit up 12 percent
Larsen & Toubro (L&T) reported a higher-than-expected 12 percent rise in quarterly profit.
Engineering conglomerate Larsen & Toubro (L&T) reported a higher-than-expected 12 percent rise in quarterly profit, helped by a pickup in project execution, sending its shares up more than 2 percent.
L&T said its order inflows rose an annual 4 percent during its fiscal first quarter ended June to Rs 16190 crore ($3.6 billion), taking its order book to Rs 136000 crore.
L&T operates in industries as diverse as engineering, shipbuilding and software and has benefited from a construction boom over the past few years as the rapidly-growing economy revamps airports and roads and expands industrial capacity.
But stubbornly high inflation, an aggressive central bank that has raised interest rates 11 times since March 2010 and soaring commodity prices threaten the pace of growth and have resulted in the deferring of projects in several sectors.
L&T said net profit rose to Rs 746 crore($166 million) from Rs 666 crore a year ago. Net sales rose 21 percent to Rs 9483 crore.
A Reuters poll of 11 brokerages had forecast net profit of Rs 720 crore on net sales of Rs 9500 crore.
Operating margin during the quarter was 11.9 percent, lower than 12.8 percent a year earlier, hurt by higher costs.
Larsen, which is streamlining its organisation to better manage growth, raised $252 million from an initial public offering in its L&T Financial Holdings unit last month.
Shares in the company, valued at more than $22 billion, were up 0.7 percent at Rs 1,650.65 today, reversing earlier losses in a weak Mumbai market. The shares rose as much as 2.2 percent earlier to the day's high of Rs 1,674.10.
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Larsen and Toubro Ltd (L&T) posted a worse-than-expected 6.9 percent fall in quarterly profit as interest costs jumped for India's biggest engineering and construction company.
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