Thursday, May 19, 2011

L&T Q4 net up 26% to Rs 1686cr, sees pressure on margins

Engineering and construction major Larsen & Toubro’s fourth quarter (January-March) net profit beat analyst estimates, but was boosted by an exceptional income of Rs 226 crore.

However, order inflow for the quarter was better than what most analysts had expected, and this triggered a rally in the stock. At 2:43 pm, L&T shares were trading at Rs 1572, up 4% over the previous close, and up around Rs 100 from the day’s low.

Quarterly net profit was Rs 1686 crore, up 23% year-on-year, and ahead of the CNBC-TV18 analyst poll estimate of Rs 1565 crore.

Gross sales for the quarter rose 13% to Rs 15213, and order flow during the quarter increased 27%. The company’s order book as on March 31, 2011 stood at Rs 130,217 crore.

Operating profit margin for the full year was 14.9% compared with 14.6% in the previous year but the company cautioned that margins would be under pressure this year.

“While completion of the several expansion projects underway will strengthen the company’s position of pre-eminence in its various businesses, intense competition and spiraling input costs may exert some pressure on the operating margin going forward,” the company said in a release.

The company’s main division—engineering and construction—got orders of Rs 28526 crore for the March quarter, up 29% year-on-year. For the year as a whole, order inflows rose a modest 14%. The company said major orders during the quarter came from minerals & metals and building & factories sectors.


www.moneycontrol.com.

Thanks & Regards,
Priyanka Kothari,
Client Service Associate.

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