India's biggest engineering and construction company Larsen and Toubro Ltd (L&T), a corporate proxy for the broader economy, reported a 37.31% fall in net profit for the first quarter of the current financial year. Net profit fell to Rs.606.19 crore in the April-June quarter from Rs.966.89 crore a year ago, the company said. Net sales rose 6.73% to Rs.20,252.17 crore.
A Bloomberg poll of 14 analysts estimated net profit at Rs.829.50 crore while a survey of 13 analysts projected sales at Rs.20,250.70 crore. The consolidated order book of the company stood at Rs.2,38, 973 crore as on 30 June, 22% higher compared to last year. The company won new orders worth Rs.26,376 crore during the quarter. International revenue during the quarter was at Rs.6,609 crore and constituted 32% of the total revenue. During the quarter, the company won international orders worth Rs.8,110 crore, which accounted for 31% of the total order inflow. Overall, the international orders constituted 26% of the total order book. In its outlook statement, L&T said the investment climate remained subdued against the backdrop of global uncertainties and unhurried pace of reforms in India. "The domestic infrastructure sector awaits the translation of various policy and budgetary initiatives into a definitive capital expenditure programme. While visibility of outlay by public sector or government undertakings has improved, private sector investment in the industrial sector is constrained by weak demand, low commodity prices and under utilisation of the existing capacities," the statement said.