L&T Q2 reports 84% jump in net profit

Infrastructure giant Larsen and Toubro (L&T) on Monday reported a 84 per cent jump in its consolidated net profit at Rs 1,434.63 crore for the quarterended September 30, 2016. The firm had clocked a net profit of Rs 778.37 crore in the year-ago period.     

Total consolidated income of the company rose by 8 percent to Rs 25,010.70 crore in July-September quarter this fiscal from Rs 23,123.48 crore during the same quarter in 2015-16, the company said in a BSE filing.     

Its total expenses rose to Rs 23,173.16 crore, from Rs 21,521.06 crore. International revenue during the September quarter at Rs8930 crore constituted 36 per cent of the total revenue, L&Tsaid in a statement.     

"As a part of implementation of its Strategic Plan, thecompany has divested the General Insurance business. Inclusive of the gain on divestment, the company recorded overall PAT for the quarter ended September 30, at Rs 1,435 crore vis-a-vis PAT of Rs 778 crore for the corresponding quarter of the previous year," it added.   

The firm said it continued the momentum of order intake during the second quarter with consolidated order inflow at Rs 31,119 crore, a growth of 11 per cent. The international orders at Rs 7,386 crore constituted 24 per cent of the total order inflow.     

Major orders were secured by Infrastructure andHydrocarbon Segments. The consolidated order book of the groupstood at Rs 2,51,773 crore as on September 30, 2016, higher by4 per cent from the year-ago level.     

On outlook, L&T said the government has been stressing on its commitment to implement policies and programmes for infrastructure development with special focus on development of transportation corridors, metro rails, smart cities and water resources.     

There has been emphasis on domestic defence manufacturing as well. Significant changes in form of introduction of GST and passage of bankruptcy code are being ushered, it added.     

"Various policy measures to facilitate ease of doing business, expansion of hi-tech manufacturing base and attracting foreign investments need to be implemented well to revive investments and sustain economic growth in the longrun," L&T said.     

On the international front, the company said it continues to strengthen its position and pursue select prospects in the core infrastructure and energy sector. "The company is well placed to benefit from the emerging opportunities and sustain its leadership position across the sectors," it said.