Advertisement

HindustanTimes Tue,23 Sep 2014

L&T Q2 net up 7% on surging order flows

HT Correspondent, Hindustan Times  mumbai, October 18, 2013
First Published: 23:35 IST(18/10/2013) | Last Updated: 23:39 IST(18/10/2013)

India’s biggest construction major, Larsen & Toubro Ltd (L&T), on Friday reported a 7% year-on-year rise in net profit to Rs. 978 crore in July-September due to a surging order book, especially in international operations.

Advertisement

Analysts had estimated a net profit of Rs. 900 crore during the second quarter.

Revenue grew 10% to Rs. 14,648 crore and the company maintained its revenue growth forecast of 15% for 2013-14.

L&T’s order book grew 27% to Rs. 26,500 crore during the quarter as international order inflows more than doubled, accounting for 43% of its total new business,.

The company is looking to boost overseas sales as the domestic economy, where it gets 80% of its revenue, slows down considerably.

Bottlenecks caused by difficulties buying land and high funding costs are also deterring investments. “At the moment, investment momentum in West Asia is pretty strong, so our attention has rightly been focused there,” said R Shankar, chief financial officer.

“We believe L&T is best placed to benefit from the gradual recovery in the capex cycle, given its diverse exposure to sectors, strong balance sheet and cash flow generation as compared to its peers,” said Viral Shah, analyst, Angel Broking.


Advertisement
more from Business

Indian BPOs eye LatAm, West Asia for growth

Expanding into Latin American countries would also help them serve US — their largest client — from closer locations. “West Asia is comparatively a virgin market for the Indian BPM companies.
markets
Advertisement
Most Popular
Advertisement
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved