India’s largest construction and engineering company Larsen and Toubro’s standalone net profit for the quarter ended March 31 this year dipped due to higher expenses on raw material, sub-contracting, consumption of construction material, employee costs and other operating expenses.
The company has recommended a dividend of Rs 18.50 on each share. It has also proposed an issue of bonus shares in the ratio of 1:2, that is, one bonus share for every two shares held.
L&T’s order book during the fourth quarter saw inflows of Rs 27,929 crore, a growth of 32 per cent over last year.
The company bagged orders worth Rs 88,035 crore during FY13, an increase of 25 per cent over FY12.
Considering the challenging environment and with investor sentiment yet to improve, the company has done well to stay on course with its plans, said R. Shankar Raman, Chief Financial Officer.
Orders worth over Rs 17,000 crore were removed from the order book since the company felt they would take some time to materialise, even though the clients have not cancelled them, he added.
The total order book stood at Rs 1,53,604 crore, of which international orders constitute 13 per cent.
A M. Naik, Executive Chairman, said he is cautious, yet optimistic, about the future. He expects growth for the coming year to be about six per cent. With general elections round the corner, the Government’s compulsions would be on social spending and development would be second priority, he added.
L&T, he said, is better placed compared to others due to its diverse portfolio. The company expects international orders to tide over any shortcomings on the domestic front. Overseas revenue for FY 13 was 17 per cent at Rs 12,110 crore (Rs 6,000 crore in FY12). Naik expects it to double to Rs 25,000 crore this fiscal.
The L&T scrip closed 5.6 per cent lower at Rs 1517.10 on the Bombay Stock Exchange on Wednesday.