Strong international business and healthy order inflow helped engineering and construction major Larsen and Toubro (L&T) post 13% year-on-year growth in third quarter net profit at Rs 1,122 crore from Rs 991.66 crore in the corresponding period last year. Order inflow stood at Rs 19,545 crore, a 14% growth.
L&T's revenue grew 11% to Rs 15,429 crore, of which a substantial 21% came from overseas operations. The exports grew 144% during the quarter at Rs 3,700 crore.
The company's key business of engineering and construction contributed 86.8% of the revenue and has become further bigger among its various divisions. L&T's expenses grew 11% to Rs 14,155 crore during the quarter as staff cost went up by 22% at Rs 1048.52 crore.
Shankar Raman, chief financial officer, L&T, said the company is on course to achieve its 15% revenue guidance given at the beginning of the year. However, he said, there is a larger liquidity issue in the market, affecting its growth. "Banks have reduced their exposure and clients are taking more time to pay," he said.
"Considering the environment that is still investment-shy and competition that is intense, the company has done well," he said. "Couple of quarters later uptick will be seen as a result of the recent policy initiatives."
L&T's stock price closed 1.6% up to Rs 1,585.5 on the BSE.