Engineering and construction firm Larsen & Toubro has posted a 9 per cent rise in net profit at ₹870 crore for the December quarter on the back of higher revenue and stable margins. The company’s net profit in the year-ago quarter was ₹800 crore.
Net sales were up 10 per cent at ₹23,850 crore (₹21,730 crore). The operating profit margin (EBITDA) remained stable at 12 per cent.
R Shankar Raman, CFO, said domestic order flow had improved. However, he expected business to pick up in three to four quarters.
On the fall in oil prices and its impact on West Asia orders, SN Subramanyam, Senior Executive Vice-President, Infrastructure and Construction, said given the strength of the oil-rich nations he was confident that essential projects would remain unaffected.
Order inflow for the quarter was 19 per cent higher at ₹34,580 crore (₹28,990 crore) of which international orders at ₹6,300 crore constituted 18 per cent. Major orders were secured by the infrastructure segment whose order book rose 19 per cent year-on-year to ₹1.59 crore.
The consolidated order book stood at ₹2.25 crore, up 17 per cent. Of this, international orders comprise 25 per cent.
Raman said the global economy is subdued and attention is on India for investment. The Government is taking initiatives to benefit from this. While the US economy remains resilient, global economic development remains subdued with the Euro zone grappling with the debt burden, slowing growth in China and Russia and Latin American countries reeling under the impact of falling oil prices. While investments in the oil and gas sector in West Asia may get impacted by the decline in oil prices, it is expected that the spend on infrastructure development would continue.
On Monday, the company’s scrip closed 6.61 per cent lower at ₹1,573 on the BSE.