L&T Q4 net profit rises 29.5% on higher revenue
MUMBAI: Larsen & Toubro Ltd, India’s largest engineering and construction company, on Monday reported 29.5% rise in its consolidated net profit due to higher revenue.
Consolidated net profit for the quarter ended March 31 rose to ₹3,025 crore from ₹2,335 crore a year earlier. Gross revenue rose 12% to ₹36,828 crore.
Nineteen analysts polled by Bloomberg had expected L&T to report consolidated net profit of ₹2,650.50 crore while 20 analysts had expected net sales of ₹36,582.20 crore.
In January, L&T had lowered its full-year fiscal 2017 estimates to a growth of 10% in order inflow as well as revenue from an earlier forecast of 15% growth in order inflow and between 12%-15% for revenue.
L&T has in recent years been hurt by a slowdown in the investment cycle as over-extended cor- porate entities struggle to repay debt, putting expansion plans on hold. But it has set a target of doubling revenue by 2021 as part of its five-year Lakshya plan.
L&T said its consolidated order book of the group stood at ₹2.61 lakh crore as of March 2017, up 5% from a year ago. International order book constituted 27% or the total order book.
The company said it announced one bonus share for every two held and also recommended a dividend of ₹21 a share.
In its outlook, the company said it continues to focus on profitable execution of the large order book, selective order picking, on time deliveries and operational excellence through digitalisation.
The company is also emphasising on cost competitiveness, continuous optimisation of working capital, restructuring of its business portfolio and value creation with an aim to enhance its return on equity, it added.