Millennium Post

L&T’s quarterly net profit dips 14 per cent to Rs 977.5 crore

Profit after tax excluding exceptional and extraordinary items rose 6.85 per cent to Rs 977.51 crore from Rs 914.76 crore, the company said in a BSE filing. L&T said the numbers would have been worse had it not been for an increase in overseas orders. In Q2 of the last fiscal, the company reported net profit of Rs 1,137.31 crore, which included an exceptional gain of Rs 214.29 crore and an extraordinary item of Rs 52.89 crore.

Net sales grew 9.96 per cent to Rs 14,509.51 crore from Rs 13,195.23 crore.

'Despite difficult times, we had good growth in sales. International business has done significantly well with it contributing nearly 32 per cent of sales. There was muted growth on the domestic front,' managing director and chief executive officer K Venkatraman told reporters here. L&T shares gained 4.2 per cent to Rs 872.05 at the close on the BSE.

Sanjeev Zarbade, vice president, private client group research at Kotak Securities, said, 'L&T numbers are ahead of our expectations, though other income of Rs 449 crore was the main reason for profit rise.'

He said the infrastructure and hydrocarbon businesses performed well, while sales in the power, hydrocarbon and metallurgical and material handing divisions declined. Order inflows grew 27 per cent to Rs 26,533 crore from Rs 20,967 crore.

'While 71 per cent of the new orders came from the domestic market, 29 per cent came from international market,’ group CFO S Shankar Raman said.
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