With 6% revenue growth, L&T Q2 profit rises 26%

Infrastructure major Larsen and Toubro Ltd (L&T) has reported 26.2 per cent rise in net profit for the second quarter, beating analysts’ estimates.

Profit rose to ₹1,820 crore in Q2 FY18, against ₹1,435 crore in the same period last year, while the company’s revenue for the quarter rose 6 per cent to ₹26,447 crore.

While L&T said it is committed to its earlier announced revenue growth guidance of 12 per cent, the same might not be true for the order inflow guidance, as expectations of accelerated growth in orders in the domestic market are not playing out yet.

The company secured orders worth ₹28,732 crore at the group level in Q2, which is 8 per cent more than in the previous year period.

The company’s international orders stood at ₹10,420 crore, constituting 36 per cent of the total order inflow.

While international order inflow, according to the company, is stable thanks to new orders secured by the hydrocarbons business, the Middle East, one of the key markets for the company outside India, continues facing headwinds.

The overall order inflow continues to reflect a subdued investment environment, the company said, especially in the domestic market, where the capex is driven by the public sector.

Reliance Infrastructure Ltd (Rinfra), part of the Anil Ambani-led Reliance Group, has reported a 4.6 per cent decline in consolidated net profit to ₹543.8 crore for the second quarter of the current fiscal, compared to ₹571 crore in the same period a year ago.

Its total income stood at ₹7,735 crore (₹7,476 crore).

While the company has registered revenue growth in the roads and metro segments and is bullish on defence business, where it has been eyeing naval and aviation order, it has also moved forward in divesting some of its power assets to the Adani Group.

Earlier this month, Rinfra completed the sale of its Western Region System Strengthening Scheme (WRSSS) transmission undertakings to Adani Transmission Ltd (ATL) for ₹1,000 crore.

In October, RInfra and ATL had also entered the period of exclusivity for RInfra’s flagship Mumbai distribution business valued at ₹10,000-13,000 crore.