Last Updated : Jan 23, 2014 10:09 AM IST | Source:

L&T Q3 net rises 11% to Rs 1241 cr, revenues up 12%

Revenues dropped 6.75 percent to Rs 14,387 crore in the quarter ended December 2013, impacted by fall in power, and metallurgical and material handling businesses.

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Country's largest engineering and construction company Larsen and Toubro's third quarter (October-December) net profit grew 10.6 percent year-on-year to Rs 1,241 crore compared to a year ago period.

After considering the exceptional gain on dilution of part stake in a subsidiary company (hydrocarbon), (adjusted) profit after tax soared over 22 percent during the quarter.

Post demerger, L&T transferred hydrocarbon business to its subsidiary L&T Hydrocarbon Engineering with effect from April 1, 2013.

Accordingly, the company restated suitably its earnings for the previous quarter ended September 2013 and numbers relating to previous periods, R Shankar Raman, whole-time director and chief financial officer said.

"Competitive value proposition to the clients and disciplined execution have helped the company sustain its profitable growth momentum," the company said.

Revenues jumped 11.8 percent to Rs 14,387.5 crore in the quarter ended December 2013, that was limited due to fall in power, and metallurgical and material handling businesses.

Revenues from its power business declined 30 percent to Rs 1,211.6 crore year-on-year while that of infrastructure business rose 21.5 percent to Rs 8,908.46 crore in the quarter gone by.

"Multiple unresolved sectoral issues have resulted in near halt in the order inflows of the power segment, which could secure fresh orders of Rs 200 crore during the quarter ended December 2013," the company explained reason for fall in orders in power segment.

Metallurgical and material handling (MMH) business slipped 5.5 percent on yearly basis to Rs 1,556.6 crore while heavy engineering revenues jumped 22.24 percent to Rs 1,049.5 crore and electrical and automation grew 13 percent to Rs 1,002.8 crore.

On the operational front, earnings before interest, tax, depreciation and amortisation jumped 33 percent Rs 1,675 crore and operating profit margin expanded 180 basis points to 11.6 percent compared to a year ago period. Analysts had estimated EBITDA at Rs 1,710 crore and margin at 9.8 percent.

"Presence in the diverse sectors, healthy order book, proven track record and strong balance sheet are the key enablers for the company to steer through the near to medium term challenges and meet its growth aspirations," the company said in its filing.

Order Book

Order inflow in the December ended quarter rose 21 percent to Rs 21,722 crore year-on-year, aided by major orders in infrastructure segment.

The international order inflow in Q3 grew more than doubled to Rs 8,237 crore on the back of major orders from Middle East.

Order book of the engineering and construction company stood at Rs 1.71 lakh crore as on December 2013, a growth of 13 percent compared to a year ago period, including 15 percent international order book.

Order book from infrastructure segment jumped 28 percent year-on-year to Rs 1.3 lakh crore, driven by building factories, power transmission and distribution, water & renewable energy and transportation infrastructure business. Operating profit margin of infrastructure business expanded 110 basis points Y-o-Y to 11.4 percent.

Order book for power segment dropped 14 percent to Rs 15,030 crore during December quarter and operating profit margin of the same business declined 80 bps to 6.4 percent.

MMH business' order book declined 30 percent to Rs 14,084 crore and margin squeezed to 16.1 percent from 17.6 percent.

Heavy engineering segment margin widened to 17.2 percent versus 15.3 percent and order book of that segment stood at Rs 7,484 crore. Electrical and automation business' margin increased 60 basis points year-on-year to 14.9 percent.

L&T has lowered its full year guidance for order inflow saying it may end FY14 with 15 percent growth in order inflow than 20 percent earlier.

First Published on Jan 22, 2014 04:14 pm
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