L&T Q1 net up 46% at Rs 610 cr; investments yet to gather pace

New Delhi: Infrastructure giant Larsen & Toubro (L&T) on Friday reported a 46 percent jump in consolidated net profit at Rs 610 crore for the quarter ended June 30, 2016.

The firm had clocked a net profit of Rs 419 crore in the year-ago period, it said in a BSE filing.

Total income of the firm rose 9 percent to Rs 21,874 crore in April-June quarter this fiscal from Rs 20,048 crore during the same quarter in 2015-16.

Company's total expenses were higher at Rs 20,434 crore from Rs 18,873 crore during the period under review.

L&T successfully won fresh orders worth Rs 29,702 crore at consolidated level during the quarter ended June 30, registering an increase of 14 percent. International orders at Rs 13,211 crore constituted 44 percent of the total order inflow, it said.

Major orders during the quarter were secured by Infrastructure and Hydrocarbon segments, it added.

The consolidated order book of the group stood at Rs 2,57,427 crore as on June 30, higher by 8 percent year-on-year basis. International order book constituted 29 percent of the total order book.

Company said pick-up in investment is crucial to sustain economic growth in the medium and long term.

"The investment climate in India is yet to gather pace, particularly in the private sector. High corporate debt levels, balance sheet challenges of banks, weak industrial and rural demand and sluggish exports are posing hurdles to the investment momentum," it added.

Both Central and State Government led push to capital expenditure holds the key to accelerate the growth engine. Good progress of monsoon and pay revisions for government employees are expected to spur household demand, L&T said.

"The intent of the government to pursue economic reforms is visible through passage of bankruptcy code, as well as efforts to build consensus on GST Bill and attract foreign investments to make India a hi-tech manufacturing hub," it added.

Government initiatives for development of smart cities, building up robust infrastructure through rail corridors, metro rails and roads, focus on defence manufacturing, increased outlays for augmentation of water resources and renewable energy augur well for the company, it said.

On the international front, the company will continue to target select prospects in the space of core infrastructure and Oil & Gas sector in the Middle East, Africa and other neighbouring countries, it added.

The company has recently finalised its strategic plan for five years with a focus on profitable growth. The firm remains well placed to benefit from emerging opportunities with its execution capabilities and leadership position in various sectors, it noted.

Shares of the company today fell by 1.20 percent to settle at Rs 1558 a piece at the BSE.