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.
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.