L&T's Q2 net up 42.5% on timely completion of projects

Larsen & Toubro (L&T)'s September profit grew 42.5 percent year-on-year to Rs 1,137 crore on timely completion of projects and also due to an exceptional gain of Rs 214 crore on divestment in its arm. Analysts on an average had expected the company to post profits of Rs 893 crore.

L&T also earned extraordinary gain of Rs 52.9 crore in the quarter on account of sale of Satyam shares. However, the forex loss during the quarter stood at Rs 33 crore.

The company managed to beat expectations on every count that pushed the share price to its new 52-week high of Rs 1,668. The share price gained over 2 percent to Rs 1,665.30, post the earnings announcement.

Revenues also increased 17.34 percent to Rs 13,195 crore, YoY, while the forecast was around Rs 13,045 crore.

Operating profit margin grew by 30 basis points to 10.7 percent during the quarter as against 10.4 percent estimated by analysts.

Order inflow increased 30% year-on-year to Rs 20,967 crore on strong orders from infra space, building and factories and hydrocarbons segments. Analysts had expected over Rs 16,000 crore.

L&T has an order book of Rs 1.59 lakh crore as of September 30, 2012. International orders made up for 12% of total orders received by the company. The company has estimated the order size to be around RS 80,000-Rs 84,000 for FY13.

The company's management said that the company will focus on ramping up overseas growth, particularly in the Middle East, Brazil and Turkey, looking to offset the slowdown at home and aiming for foreign markets to account for 25 percent of revenue by 2016.

Going forward, the L&T said that tight market environment could prevail with inflationary pressures, tigh liquidity conditions and volatility in currencies, yet the company is striving toward maintaining growth momentum.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal 
Head Dealer 
DENIP Consultants Pvt Ltd