The Hindu Business Line : L&T Q2 net up 41 pc

Growing segments
Electricals and electronics segment reported 32 per cent hike in PBIT
Machinery and industrial products increase of 49 per cent.
Its "other" segments an increase of over 50 per cent.

Mumbai , Oct. 19

Larsen & Toubro said its net profit rose by 41 per cent for the second quarter ended September 30, as all its business segments led by its engineering and construction segment, reported increased profitability.

Net profit for the quarter amounted to Rs 201 crore, up from Rs 143 crore for the corresponding year-ago quarter.

Excluding non-recurring items, the year-ago quarterly net profit would have been Rs 120 crore, which would mean a net profit growth of 53 per cent for the quarter currently ended, said a statement.

The profit increase was a 12.3 per cent growth in net sales, at Rs 3,736 crore (Rs 3,327 crore).

L&T's engineering and construction segment reported a 9 per cent increase in revenues (Rs 4,631 crore), but a 54 per cent growth in profit before interest and tax (PBIT) at Rs 215 crore. The EBITDA margin of this segment improved by 3 percentage points, to 8.5 per cent and this would be maintained through the fiscal, said the L&T Chief Financial Officer, Mr Y.M. Deosthalee.

The company's electricals and electronics segment reported 32 per cent hike in PBIT, its machinery and industrial products an increase of 49 per cent and its "other" segments an increase of over 50 per cent.

The engineering and construction segment's cumulative order booking during the year till date is Rs 10,955 crore, 59 per cent higher than a year ago. Order bookings during the quarter, at Rs 4631 crore, grew 15 per cent year-on-year.

The prevailing conducive business climate in the domestic market across sectors, and the investment allocations in the hydrocarbons sector in the Gulf region present opportunities for L&T, said a statement.

Revenue growth

As compared to the 12 per cent growth in revenues in the first half, the second half revenue growth will be much higher, so that overall revenue for the year will be 20 per cent, said Mr Deosthalee.

Order book growth for the year will be 30 per cent.

The company's new shipbuilding business has orders of Rs 1,000 crore coming over the next 12 months.

Currently the work is being executed out of the company's Hazira complex, but L&T is still scouting for a location for the business, said officials.

The company's capital expenditure for the fiscal is between Rs. 1300 crore and Rs. 1400 crore, said Mr Deosthalee.

The company's shares ended lower on the stock exchanges, ending the day at Rs 1,276.35 on BSE on Thursday, losing Rs. 27.80 over Wednesday's close.

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