Larsen & Toubro net profit rises 53% to Rs 1,490 crore in Q3 FY18        Last Updated: January 31, 2018  | 20:50 IST
Larsen & Toubro net profit rises 53% to Rs 1,490 crore in Q3 FY18

Larsen and Toubro posted 53 per cent increase in its net profit during the quarter that ended on December 31, 2017. Backed by improved project execution and higher domestic order, the profits rose to Rs 1,489.98 crore during the quarter under review. The net profit for corresponding period last fiscal was Rs 972.40 crore, the company said in a stock exchange filing.

"Domestic order intake grew 70 per cent this quarter. These were the orders that were waiting to be awarded and we are happy to bag them that helped bump up our domestic order inflow," L&T Group chief financial officer R Shankar Raman said while addressing reporters today.

The Indian infrastructure firm posted revenue from operations to the tune of Rs 28,747 crore in the third quarter of FY18, in comparison to Rs 26,287 crore in the year ago period. This amounts to 9.4 per cent increase in consolidated gross revenue for the period. This increase goes on to 10 per cent when adjusted for excise duty subsumed in GST, the company said in a statement.

"This quarter was a welcome relief for us as performance was satisfactory on all fronts. Revenue recognition was mainly from our businesses like infrastructure, hydrocarbons, heavy engineering, financial services and developmental projects," said Raman.

"During the past two quarters, we have witnessed a growth of around 8 per cent in revenue and this quarter we touched 10 per cent. At the beginning of the fiscal we had given a guidance of 12-14 per cent topline growth, which we later revised to a flat growth. We would still like to maintain a growth rate which we had last fiscal," he further said.

Consolidated revenue from international markets during the Q3 FY18 amounted to Rs 10,110 crore, which was 35 per cent of the total revenue. Meanwhile, L&T won fresh orders worth Rs 48,130 crore during the December quarter, growing by 38 per cent. The company secured international orders worth Rs 8,835 crore during the period under review, which constituted 18 per cent of the total order inflow.

Raman mentioned that the geo-political development in the Middle East and the changing business climate in the country boosted order flow the domestic market, bumping up domestic orders. "Challenges to growth in global trade continue with protectionist economic policies and geo-political dynamics. Tax reforms in the US, Middle East and elsewhere are resetting the global competitive landscape," he said.

During the quarter, infra revenue grew 11 per cent to Rs 13,801 crore, while heavy engineering business reported a 16 per cent growth at Rs 923 crore and financial services segment grew 25 per cent to Rs 2,634 crore.

Developmental projects business registered a growth to Rs 1,031 crore, while the power segment reported revenue of Rs 1,268 crore. Hydrocarbon segment achieved customer revenue of Rs 3,083 crore, up 29 per cent.

(With PTI inputs)

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