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L&T’s net profit for the second quarter ended September 30 was boosted by a couple of one-time transactions totalling Rs 222 crore.
The company sold its plastics machinery business for Rs 170 crore. It also sold its balance stake in Mahindra Satyam amounting to Rs 52 crore.
Without the one-time transactions, net profit was up 15 per cent at Rs 915 crore.
However, order inflow was up 30 per cent at Rs 20,967 crore. The order book stood 11 per cent higher at Rs 1.5 lakh crore as of September 30. Major orders were from infrastructure and hydrocarbon sectors.
International orders constituted 12 per cent of the total book. During the quarter, export sales totalled Rs 2,700 crore. It was Rs 1,301 crore in the same quarter of last year. “This is more due to execution of orders received last year,” said K. Venkataramanan, Managing Director and Chief Executive Officer.
Shankar Raman, Chief Financial Officer, L&T, said: “The order inflow and order book are good, but we would still maintain our guidance of 15-20 per cent of order inflow above last year’s figure of Rs 70,000 crore. We are lining up for Rs 80,000-84,000 crore for the full year.’’
The company’s engineering and construction segment achieved net revenues of Rs 11,633 crore for the quarter, logging a year-on-year growth of 19 per cent. The segment garnered fresh orders of Rs 19,136 crore, which was 31 per cent higher over last year’s figures. International orders constituted 24 per cent of the order inflow.
OUTLOOK
Raman said the uncertainty prevailing over the revival of growth in the global economies and the slow pace of reforms in the domestic economy had led to deceleration of growth across sectors. The quarter witnessed tight liquidity and volatility in the currency markets.
Inflation continued to remain elevated.
On Monday, the L&T scrip closed 2.17 per cent higher at Rs 1,668.20, on the BSE.
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