Engineering major Larsen and Toubro Ltd (L&T) has reported a 37 per cent decline in net profit to ₹606 crore for the first quarter ended June 30 against ₹966 crore in the corresponding quarter last year.

The net sales for the quarter increased by 7 per cent to ₹20,460 crore (₹19,123 crore).

Chief Financial Officer of the company R Shankar Raman addressing media persons on Friday said that profits in the year-ago quarter were higher due to an operating gain of ₹1,100 crore on account of stake sale in Dhamra Port.

But the cost overrun in the hydrocarbon business was about ₹700 crore.

In effect, first quarter profits last year had an extra gain of ₹400 crore. “Similar cushion was not available in this quarter,” he said.

“The results also need to be seen in the current environment. A cautious and investment shy environment is pervading, while the macro economic parameters are showing some signs of improvement,” Raman said.

Consolidated order book of the company stood at ₹238,973 crore as on June 30, 2015.

Raman pointed that the domestic orders during the quarter have been consistent with the previous year.

However, the international orders have been affected, last quarter these orders were to the tune of ₹4,800 crore and during the quarter under review they were ₹8,110 crore.

At the closing of the trading hours on the BSE, the stock remained flat at ₹1789.55.

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