Larsen and Toubro Ltd (L&T) posted a 111 per cent rise in net profit at ₹967 crore for the quarter ended June 30 against ₹459 crore a year earlier, thanks to divestment gains from L&T Finance Holdings and Dhamra Port.
The stake sale in L&T Finance fetched the company ₹105-106 crore, while the net gain in Dhamra Port divestment was around ₹1,350 crore, said R Shankar Raman, Chief Financial Officer, L&T.
In the Dhamra Port deal, ₹787 crore was the divestment gain while ₹563 crore came from loss reversal.
Raman said business sentiment has improved after the new Government took over but ground realities remain the same.
L&T also sold a stake in City Union Bank for about ₹90 crore.
Net sales rose 10 per cent to ₹18,975 crore (₹17,241 crore). Earnings before interest, taxes, depreciation, and amortisation margins were up at 13.3 per cent (10.9 per cent).
The hydrocarbon business posted a loss of ₹942 crore for the quarter at the PBIT (profit before interest and taxes) level due to cost and time overrun in overseas projects. L&T had booked a ₹114.57 crore loss in the same segment during the March quarter.
Order inflow for the quarter was ₹33,408 crore (₹30,016 crore), up 11 per cent.
International order inflow at ₹14,754 crore grew more than two times year-on-year, constituting 44 per cent of the total order inflow. Major orders were in infrastructure, hydrocarbon and heavy engineering segments.
The consolidated order book of the group stood at ₹1,95,392 crore as on June 30, up 13 per cent. The international order book constituted 26 per cent of the total order book.
Outlook Notwithstanding the improved sentiments, the domestic business environment continued to remain subdued.
While the currency markets were stable and the capital markets were buoyant, high inflation, elevated interest rates and tight liquidity conditions persisted during the quarter.
The domestic market holds large potential awaiting impetus through policy measures. L&T expects good prospects in the medium term from the revival of core sectors such as infrastructure, power, minerals and metals, defence and oil and gas.