Larsen & Toubro reports 29.5 per cent increase in net profit
MUMBAI: Major Engineering Larsen & Toubro (L & T), which reported on Monday a 29.5 percent increase in net income for the quarter ended March 31 at Rs 3025. It shows Crore revenue growth of approximately 12 Percent in fiscal year 2018.
The company had posted a net profit of Rs 2,335 crore in the corresponding quarter of the previous year.
Total operating income for January was $ 368.99.99 crore against Rs 875.51 crore 32 in the fourth quarter of 2010, posting a growth of 12.02 percent.
“In general, the performance was satisfactory despite the defensive winds and the difficulties of the environment in which it operates. We expect to see some recovery in the current budget and expect a 12% increase in revenues and a 12 to 14% Of the entries in the year 18, “SY T CFO Group R Shankar Raman told reporters.
For the year, L & T’s revenues rose 7.88% to $ 110.01111 crore against Rs 975.34 crore in the year 16, while its profit rose 43% to $ 6411 crore.
L & T won new orders worth R $ 142.995 million rupees at group level during the year with a difficult business environment. International orders accounted for about 29% to Rs 41,507 of the total order entry, he said.
“Requests for gains in the areas of infrastructure, hydrocarbons and heavy engineering segments contributed to the flow of control during the year.” The orders we recorded in the fourth quarter, almost 30%, are the domestic market. The beginning of the investment cycle in the domestic market that will allow an increase in capacity utilization, “Raman said.
Of the new orders on the international market, Raman said that there had been a slowdown especially in the Middle East, mainly due to falling oil prices.
“These markets have adopted a conservative mode of investment. In the meantime, we have decided to be selective in our approach during the tender and therefore it is a deliberate low consumption,” he said.
Executive Chairman AM Naik said that “the weather is very difficult, but we continue to believe that the prospects are good if the initiatives taken by the Government are implemented.”
He said most of the projects, especially in the defense sector, which are supposed to come from last year, was delayed.
“The contracts of the PND were in the order of more than Rs 20,000 million rupees of the Navy, have been postponed.If that happened, we would have exceeded our guide on the new orders.Purchases of six submarines 75 have not yet been granted, and I do not think it will also come in the fiscal framework. The government allowed a strategic alliance with the private sector, but it should be parallel, “Naik said.
He added that the real estate market has also been affected, especially after demonetization. “Due to these reasons, therefore, we have left some projects, we believe that the momentum will be back.We have eliminated almost Rs 18,000 billion of projects without movement.In recent years we have adopted this strategy to move projects Of our backlog and we have just declared executable contracts, “he said.
By the year 18, L & T expects to receive orders for oil and gas, energy, defense and infrastructure, exports of heavy machinery, among others.
Naik also said that there is still time that private sector investment in the system.
“Today there is enough liquidity with banks, but they do not want to finance sectors that require resources.” The areas they want to support, developers are worried about paying off existing debt and not borrowing. Almost from the scene and we look only if the government can spend, “he said.