Larsen & Toubro clocked a mere 4 per cent growth in standalone sales in the recent December quarter, over the year-ago period. Operating and net profits dropped 7 per cent and 14 per cent in the period.

But thanks to strong performance by L&T’s software and non-banking finance businesses, consolidated net sales and net profits grew 10 per cent and 9 per cent, respectively, for the December 2014 quarter over the year ago period.

The other silver lining is that L&T has still kept fresh orders coming in, with order inflow up 19 per cent in the quarter over the year ago. The infrastructure segment and overseas orders kept order inflow ticking.

Most segments falter

The steady execution in L&T’s infrastructure orders saw the sector clock strong sales growth of 22 per cent for the December quarter, more or less in line with the 26 per cent growth in the September 2014 quarter. The strong order pipeline will see this segment keep up its revenue growth.

Revenues from projects taken on a development basis, such as toll roads and ports, more than tripled with a power plant turning operational. This segment also saw profits leap multi-fold, aiding L&T’s consolidated net profit growth.

But L&T’s other segments — power, metallurgy and heavy engineering — saw revenues and operating profits shrink in the December 2014 quarter. Troubles with mining activity and the power sector will see these segments still suppressed in the near term.

The hydrocarbons segment too, saw revenues fall 26 per cent and losses exacerbated. In addition to continued struggles with execution and cost overruns, L&T had to contend with uncertainty over capex by oil & gas companies with the swift drop in crude oil prices.

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