The Hindu Business Line : L&T Q1 net profit rises 9.8 per cent

Larsen & Toubro has reported a 9.8 per cent increase in net profit for the first quarter ended June 30, 2006. The company reported a net profit of Rs 157 crore, as against Rs 143 crore in the corresponding quarter of the previous fiscal. When extraordinary gains made in that quarter are excluded, the net profit growth shows an increase of 60 per cent when compared with the net profit of Rs 98 crore, said a statement from the company.

Net sales rose by 12.3 per cent to Rs 3,469 crore (Rs 3,088 crore).

Expenditure was contained, rising by only 9 per cent to Rs 3,233 crore (Rs 2,957 crore). Except for expenditure on staff and sales and administrative expenses, costs across other heads were only modestly higher, and in some cases, lower.

Interest costs rose to Rs 15.8 crore (Rs 9.8 crore). Profit before tax at Rs 245 crore, showed a rise of 54 per cent. Provision for current tax amounted to Rs 85 crore (Rs 52 crore).

Engg division

The engineering and construction division recorded a modest 8 per cent increase in revenues at Rs 2,619 crore. But this segment's profit before interest and tax (PBIT) rose 92 per cent, to Rs 199 crore, as many project jobs crossed the threshold levels for margin recognition, said the company statement.

International operations accounted for 19 per cent of this segment's revenues for the quarter.

E & E segment

The electrical and electronics segment recorded a 31 per cent growth in revenues at Rs 424 crore, driven by robust increases in sales witnessed in almost all product categories, said the statement. Improved manufacturing capabilities and higher product realisations ensured a growth in PBIT (at Rs 67 crore) of 68 per cent, for the quarter.

Machinery

The machinery and industrial products segment recorded a revenue growth of 5 per cent and a PBIT growth of 86 per cent due to higher price realisations.

L&T shares slid on the bourses on Friday losing Rs 111.65to Rs 2,022.35, 5.23 per cent lower from Thursday's close.

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