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.
{{/usCountry}}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.
{{/usCountry}}"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.