The Hindu Business Line : 50% rise in L&T fourth quarter net profit

Net profit amounted to Rs 700.8 crore, against Rs 467 crore in the same year-ago quarter. Gross revenues, at Rs 6,366 crore (Rs 4,695 crore), were up 36 per cent.

The performance can be attributed to the generally buoyant market and the growing capital goods sector as well as to L&T's own strategy of "carefully choosing business opportunities," said Mr. A M Naik, Chairman & Managing Director, at a news conference here on Tuesday.

L&T's net profit (including exceptional gains), for fiscal 2006-2007 rose 39 per cent to Rs 1,403 crore (Rs 1,012 crore). Gross revenues rose 20 per cent to Rs 17,901 crore. L&T's consolidated profit after tax grew 70 per cent, rising to Rs 2,240 crore (Rs 1,317). Total income at Rs 21,342 crore, was up 25 per cent.

Its profitability was led by its largest business segment Engineering & Construction, which reported a revenue increase of 16 per cent at Rs 1,3425 crore and an operating margin of 11.1 per cent (8.1 per cent).

Revenues from international operations remained at 18 per cent of gross revenues, while margins from domestic and international operations were more or less on a par.

The company's operating profit for the year, at Rs 2,209 crore, was 47 per cent higher.

Other income at Rs 994 crore, nearly doubled. It included a one-time gain of Rs 339 crore recognised on partial dilution of stake in two subsidiaries arising on issue of additional share capital to third parties at a premium. "L&T's share of the premium at which the private equity entities subscribed to the equity, was routed to the profit and loss account," said Mr Y.M. Deosthalee, Chief Financial Officer of the company.

The board announced a final dividend of Rs 2 per equity share, taking the total dividend to Rs 13 per share, or 650 per cent.

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L&T Q4 net profit jumps 40%

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