L&T Reports 18 Per Cent Rise In Net Profit
Shrikant / 24 Jan 2012
Larsen and Toubro reported its quarterly results on Monday, January 23 2012 wherein it shows that the company beat the market expectations and posted a net rise of 17.97 per cent in its net profit to Rs 991 crore in the quarter ended December 2011. For the quarter its topline grew by 22.84 per cent to Rs 13,998 crore from a year-ago period. On the other hand its EBITDA margins declined by 117 basis points to 9.59 per cent during the same period. For the nine-month period ended December 2011, its topline witnessed a jump of 21 per cent to Rs 34,726 crore while its bottomline witnessed a rise of 15 per cent rise to Rs 2,200 crore.
Segment-wise its revenues from engineering and construction (E&C) increased by 24.85 per cent while that from while electricals and electronics (E&E) and machinery and industrial products (MIP) increased by 5.7 per cent each. The margins in the E&C remained squeezed while that in the E&E and MIP remained in line with the management’s expectations.
Table 1 : Segmentwise performance of L&T
Segment
Q3FY12
Q3FY11
Growth %
9MFY12
9MFY11
Growth %
Engineering And Construction
12465.39
9983.92
24.85%
30286.11
24684.04
22.70%
Electrical And Electronics
842.56
796.76
5.75%
2436.16
2210.44
10.21%
Machinery and Industrial products
719.77
680.92
5.71%
2088.2
1927.19
8.35%
Others
267.04
169.58
57.47%
688.13
450.62
52.71%
The order inflow was Rs 17,129 in this quarter, 28 per cent up from the order inflow in the same period last year. Its order inflow for the nine-month period remained flat compared to a year-ago period. Its total order book of Rs 1,45,768 crore constitutes orders from infra (40 per cent), power (29 per cent), hydrocarbons (11 per cent), processing (15 per cent) and the rest (5 per cent). The order inflow in the E&C segment was Rs 15,283 crore.
The E&E segment is under pressure due to the liquidity crunch in the domestic market and the sluggish international demand. The orders in this segment are mainly from the transmission and distribution sectors. The power generation orders were reduced due to issues like coal security and project finance. The scenario in the hydrocarbons sector turned difficult too.
In the fourth quarter of last year, L&T had received orders of about Rs 30,000 crore. To meet its yearly guidance the company now requires orders of about Rs 34,500 crore in the fourth quarter which currently looks difficult due to the lower growth in economy. Going ahead the company expects revenues to remain under pressure due to aggressive competition and slow industrial activity in the country as reflected in the IIP numbers. The company has also said that the rupee will remain under pressure.
| Particulars | Q3FY12 | Q3FY11 | Growth % | 9MFY12 | 9MFY11 | Growth % |
| Total income | 13998.58 | 11395.76 | 22.84% | 34726.43 | 28649.1 | 21.21% |
| Total expenditure | 12655.47 | 10169.33 | 24.45% | 31086.75 | 25406.96 | 22.36% |
| EBITDA | 1343.11 | 1226.43 | 9.51% | 3639.68 | 3242.14 | 12.26% |
| EBITDA margins | 9.59% | 10.76% | 10.48% | 11.32% | ||
| Depreciation | 180.34 | 128.09 | 40.79% | 519.1 | 363.45 | 42.83% |
| Interest | 190.71 | 167.83 | 13.63% | 545.01 | 493.01 | 10.55% |
| Taxes | 429.22 | 376.04 | 14.14% | 1147.53 | 1066.56 | 7.59% |
| Net profit | 991.55 | 840.53 | 17.97% | 2536.09 | 2200.84 | 15.23% |
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