L&T Q4 profit down 7% due to high finance costs | business | Hindustan Times
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L&T Q4 profit down 7% due to high finance costs

business Updated: May 22, 2013 16:23 IST
Larsen and Toubro

Infrastructure conglomerate Larsen & Toubro on Wednesday reported 6.90% decline in standalone net profit at Rs 1,787.94 crore for the fourth quarter ended March, 2013, due to a sharp rise in interest outgo.

The company had reported a net profit of Rs 1,920.41 crore for the corresponding quarter of 2011-12. The Infrastructure major did not publish the consolidated financial results for the quarter. Reacting to numbers, shares of L&T fell by 4.69% to Rs 1,531.30 apiece on BSE at 1405 hrs. Analysts said the results were below their expectations.

L&T in a filing to the BSE also announced to give company shareholders one bonus share of Rs 2 each for every two shares of Rs 2 each they hold to commemorate its platinum jubilee. Net sales of the company were up nearly 10% at Rs 20,293.83 crore during the quarter vis-a-vis Rs 18,460.90 crore of the Q4 of FY'12, it said in a filing to the BSE.

However, it reported 132% rise in finance costs at Rs 280.99 crore during the quarter as against Rs 121.09 crore of Q4 of FY'12, affecting L&T's profitability during the January-March period.

For the financial year ended March 31, 2013, the company reported a standalone net profit of Rs 4,910.65 crore, up 10% from the previous year's level of Rs 4,456.50 crore. Its consolidated net profit in the last fiscal stood at Rs 5,205.67 crore, up 10.91% vis-a-vis Rs 4,693.69 crore of FY'12.

Consolidated net sales of the company rose by 15.84% during the last fiscal at Rs 74,498 crore as against a net sales of Rs 64,313.11 crore.

However, L&T's profitability for the full year ended March 31, 2013, was affected by over 72% increase in its interest outgo (at Rs 2,095.02 crore).

Orderbook of the company stood at Rs 1,53,604 crore as on March 31, 2013, recording an yearly growth of 25%. International orders constitute 13% of its total orderbook.

The company Board has also recommended a dividend of Rs 18.50 per equity share to its shareholders.