LandT posts 13% rise in profit

Mumbai, Jan. 24: Engineering and construction major Larsen and Toubro (LandT) today reported an over 13 per cent growth in standalone net profit for the December quarter at Rs 1,121.75 crore over the year-ago period.

The performance has been attributed to a healthy order book, timely execution and a sharp spike in other income.

Net sales rose 10.34 per cent to Rs 15,429.36 crore from Rs 13,983.61 crore a year ago.

LandT registered an over 25 per cent growth in other income, mainly interests earned on deposits, to Rs 530.18 crore, while its total expenditure went up over 10 per cent to Rs 14,154.78 crore.

The LandT scrip today surged nearly 3 per cent before closing at Rs 1,585.50, up 1.56 per cent from the previous close on the Bombay Stock Exchange.

On the result, Sanjeev Zarbade, Kotak Securities vice-president for private client group research, said, "The numbers at earnings level are higher than expected but revenue growth is much lower. EBITDA margins are down 20 basis points year-on-year. However, we continue to recommend 'accumulate' rating on the stock."

LandT received new orders worth Rs 19,545 crore during October-December, registering a growth of 14 per cent. Global order inflow contributed 22 per cent to the total order inflow during the quarter.