Engineering giant, Larsen & Toubro has reported a 27 per cent drop in net profits for the quarter ending March 31, due to slower sales and pressure on the margins.
The company for the quarter notched a profit of Rs 2,069 crore, which in comparable quarter of the previous year was Rs 2,840 crore. The net sales for the quarter grow by 3.6 per cent to Rs 28,022 crore (Rs 27,024 crore).
The order book position for the quarter stood at Rs 47,580 crore, which in comparable quarter of the previous year was Rs 34,220 crore. International order inflow during the quarter was at Rs 11,364 crore and it constitutes 24 per cent of the total orders.
The marginal increase in profit was supported by reduction in the finance cost, which stood at Rs 473 crore (Rs 787 crore).
Chairman of the company, A M Naik, addressing the media person after the board meeting, said that the company now sees more prospects in the Indian market. Out of the total order book, the company would be capping its international order book to 30 per cent due to higher risks in overseas markets, he said.
Commenting on the developments in the economy, Naik said that orders have started coming in from the roads sector, which offers a tremendous opportunity for the company. Last month eight tenders for roads were opened and the company has won all the tenders. The government has a target of making 100 km of roads everyday. Even if 50 km target achieved then it will offer tremendous amount of opportunities for construction companies, he said.