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L&T first quarter profit rises 46% to Rs893 crore, but misses estimates

LiveMint logoLiveMint 28-07-2017 Shakti Patra

Mumbai: Larsen and Toubro Ltd (L&T), India’s biggest engineering and construction company, on Friday reported a 46% rise in its consolidated net profit for the quarter ended 30 June 2017, missing Street expectations.

The company, a corporate proxy for the broader economy, reported a consolidated net profit of Rs893 crore for the June quarter from Rs610 crore a year ago. Gross revenue reported in the same quarter was higher by 10% on a year-on-year basis to Rs23,990 crore.

A Bloomberg poll of nine analysts had estimated L&T’s consolidated net profit at Rs928.40 crore and 10 brokers estimated sales at Rs23,850.10 crore.

The consolidated order book for the quarter stood at Rs2.63 trillion, up 2% from a year ago with international orders constituting 26% of the total order book. The company won orders worth Rs26,352 crore during the quarter which included international orders of Rs7,885 crore. The bulk of the orders during the quarter were secured in the infrastructure segment.

On Friday, shares of L&T closed at Rs1,159.10 apiece on the BSE, down 2% from their previous close, while the benchmark Sensex fell 0.23% to 32309.88 points.

In its outlook, the company said global markets continued to witness a low-growth trajectory and lower investment outlay as a natural consequence of fiscal pressures faced by regulatory authorities in different countries. Sustained lower oil prices presage a period of lower infrastructure spending in West Asia and this has reduced the business prospects in that region.

Its focus continues to be on selective order intake, working capital reduction, cost optimization via strengthening execution and operational efficiency and productivity enhancement through digitization and other initiatives. L&T is optimistic of its growth prospects in the medium term as the economic outlook improves, the company added.

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