L&T net zooms on UltraTech

Construction giant Larsen & Toubro said on Thursday that its net profit in the first quarter ended June zoomed to Rs. 1,598 crore, more than three times the Rs. 502 crore in the same quarter a year ago, aided mainly by a one-time gain of Rs. 1,020 crore from a stake sale in UltraTech Cement.

Construction giant Larsen & Toubro said on Thursday that its net profit in the first quarter ended June zoomed to Rs. 1,598 crore, more than three times the Rs. 502 crore in the same quarter a year ago, aided mainly by a one-time gain of Rs. 1,020 crore from a stake sale in UltraTech Cement.

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Net sales rose to Rs 7,360 crore from Rs 6,900 crore. But the company cautioned on sluggish demand ahead.

“New orders in the three months ending June 2009 fell by more than 22 per cent and demand is likely to remain slow for at least another quarter,” said the company’s executive vice-president, R. Shankar Raman.

But new infrastructure orders are expected to improve prospects. The company now has an order backlog of Rs. 7,165 crore.

L&T’s shares closed 3.65 per cent lower at Rs 1,378, in a market in which the Sensex remained steady, losing just 2.8 points.