Engineering and construction conglomerate Larsen & Toubro (L&T) today registered a 46 per cent jump in consolidated net profit to Rs 893 crore for the first quarter ended June 30, 2017.
The company, which said first quarter of FY18 witnessed lower economic growth in the country in the aftermath of demonetisation, had clocked a consolidated net profit of Rs 610 crore in the corresponding quarter of previous fiscal.
"Consolidated Profit After Tax (PAT) for the quarter ended June 30, 2017 at Rs 893 crore was higher by 46 per cent vis- -vis PAT of Rs 610 crore for the corresponding quarter of the previous year," the company said in a statement.
Larsen & Toubro recorded Consolidated Gross Revenue of Rs 23,990 crore for the quarter under review, registering an increase of 10 per cent on an year-on-year basis. The International revenue during the quarter at Rs 8,233 crore constituted 34 per cent of the total revenue.
"The company won new orders worth Rs 26,352 crore at consolidated level during the quarter ended June 30, 2017 in a challenging business environment. International orders at Rs 7,885 crore constituted 30 per cent of the total order inflow.
Major orders during the quarter were secured by infrastructure segment," it said.
Consolidated Order Book of the group stood at Rs 262,860 crore as on June 30, 2017, marginally higher by 2 per cent on an year-on-year basis. International Order Book constituted 26 per cent of the total Order Book.
The engineering giant said the first quarter of FY18 witnessed lower economic growth in the country in the aftermath of demonetisation.
"Bank credit to industry remained muted and investment momentum was largely driven by public sector spends.
Transition to GST, implementation of RERA and the Insolvency and Bankruptcy Code demonstrate the Government's will to carry out structural reforms to boost growth and bring in financial prudency and propriety," it said.
Prospects of a good monsoon, rural wage growth, pay hike for state government employees, lower lending rates and a modest pick-up in external demand are expected to catalyse GDP growth, the company said.
It said global markets continue to witness a low growth trajectory and lower investment outlay is a natural consequence of fiscal pressures faced by regulatory authorities in different countries.
"The company's focus continues to be on selective order intake, working capital reduction, cost optimisation through strengthening execution & operational efficiencies and productivity enhancement through digitalisation and other initiatives. The company is optimistic of its growth aspirations in the medium term as the economic outlook improves," L&T said.
The company said its infrastructure segment achieved customer revenue of Rs 10,539 crore for the quarter ended June 30, 2017, registering an increase of 16 per cent driven by better project execution.
Power segment recorded customer revenue of Rs 1,763 crore during the quarter ended June 30, 2017, registering a marginal growth of 2 per cent over the corresponding quarter of the previous year.
Heavy Engineering segment achieved customer revenue of Rs 625 crore registering a decline of 5 per cent over the corresponding quarter of the previous year. Electrical & Automation (E&A) segment recorded customer revenue of Rs 1,206 crore during the quarter ended June 30, 2017, registering an year-on-year increase of 21 per cent.
While hydrocarbon segment recorded customer revenue of Rs 2,546 crore, IT & Technology Services Segment achieved customer revenue of Rs 2,536 crore during the quarter and financial services segment recorded customer revenue of Rs 2,294 crore.
Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with USD 17 billion in revenue.