L&T Q1 net declines 12.46% to Rs 756.03 cr
Mumbai: Infrastructure conglomerate Larsen and Toubro (L&T) on Monday reported a 12.46 percent decline in standalone net profit to Rs 756.03 crore for the quarter ended June 30 on subdued revenue growth and a drop in other income.
The company had posted a net profit of Rs 863.65 crore during the corresponding quarter of the previous fiscal.
Net sales grew 5 percent to Rs 12,555.06 crore during the quarter from Rs 11,956.35 crore in Q1 of 2012-13, it said in a filing to the BSE.
L&T shares, which opened higher in the morning, fell about 7 percent on the BSE immediately after the results announcement.
The stock traded at Rs 903 apiece on the BSE at 1508 hours, down 7.36 percent from the previous close. Market men said the results were disappointing, particularly the growth in revenue and order book.
The company's revenue was impacted by a 44 percent fall in the power business segment at Rs 1,274.94 crore and an almost 18 percent fall in the metallurgical and material handling business at 1,086.92 crore.
In a separate statement, the company said both businesses had a lower order book due to a slowdown in the sectors.
Other income, primarily interest earned on deposits, fell by over 22 percent to Rs 472.60 crore compared with Rs 608.12 crore in Q1FY'13.
L&T's other businesses did well. Revenue from the infrastructure business reported a growth of almost 22 percent at Rs 5,460.81 crore, while in the hydrocarbon business, it was up 24 percent at Rs 2,776.33 crore.
During the quarter, its order book, at Rs 1,65,393 crore went up by 8 percent year-on-year basis, the company said.
Giving its outlook, the company said that "persisting macro concerns, currency volatility and attendant uncertainty in the financial markets is impacting the growth and investment sentiment of the Indian economy".
It added that the recent government measures on FDI, reduction in oil and power subsidy and on facilitating investments are expected to bear fruit in the medium term.
"Resolution of long-pending issues affecting the core sectors, specific measures to boost domestic manufacturing, increased resource allocation for infrastructure sector and further push on next generation reforms are necessary to provide much needed impetus for investment and growth in India," the company said.