L&T Q2 net up 7% on subdued power, hydrocarbon sales

Engineering major Larsen & Toubro (L&T) on Friday reported a 6.87% year-on-year rise in consolidated net profit to ` 862 crore in the July-September quarter, from ` 806 crore last year, due to subdued sales from its power and hydrocarbon verticals.

Consolidated revenue rose 10.60% to ` 21,159 crore from ` 19,131 crore a year ago.

“Sales growth is a reflection of low activity and challenges in execution in the prevailing market conditions. There has been an improvement in the environment, but the real push from growth-oriented policy initiatives taken by the government will take time to translate into ground reality,” L&T’s group chief financial officer R Shankar Raman said.

He said that revenues were boosted mainly due to better performance in infrastructure and developmental projects.

The infrastructure segment achieved a revenue of ` 9,633 crore, up 27%, while international sales constituted 27% of its total revenue. The developmental projects segment recorded a revenue of ` 993 crore.