PRESS TRUST OF INDIA
Mumbai, 22 July
Infrastructure conglomerate Larsen and Toubro (L&T) today reported a 12.46 per cent decline in standalone net profit at Rs 756.03 crore for the quarter ended 30 June 2013 on subdued revenue growth and a drop in other income.
The company had posted a net profit of Rs 863.65 crore during the corresponding quarter of the previous financial year.
Net sales grew five per cent to Rs 12,555.06 crore during the quarter from Rs 11,956.35 crore in Q1 of fiscal 2012-13, it said in a filing to the Bombay Stock Exchange.
L&T shares, which opened higher in the morning, fell about seven per cent on the Bombay Stock Exchange immediately after the results were announced.
The stock traded at Rs 903 apiece on the BSE at 1508 hours, down 7.36 per cent from the previous close. Market men said the results were disappointing, particularly the growth in revenue and order book.
The company’s revenue was impacted by a 44 per cent fall in the power business segment at Rs 1,274.94 crore and an almost 18 per cent fall in the metallurgical and material handling business at 1,086.92 crore.
In a separate statement, the company said both businesses had a lower order book due to a slowdown in the sectors.
Other income, primarily interest earned on deposits, fell by over 22 per cent to Rs 472.60 crore compared with Rs 608.12 crore in Q1 of FY’13.
L&T’s other businesses did well. Revenue from the infrastructure business reported a growth of almost 22 per cent at Rs 5,460.81 crore, while in the hydrocarbon business, it was up 24 per cent at Rs 2,776.33 crore.
During the quarter, its order book at Rs 1,65,393 crore went up by eight per cent on a year-on-year basis, the company said.
Giving its outlook, the company said that “persisting macro concerns, currency volatility and attendant uncertainty in the financial markets is impacting the growth and investment sentiment of the Indian economy”.
It added that the recent government measures on FDI, reduction in oil and power subsidy and on facilitating investments are expected to bear fruit in the medium term.