Infrastructure company
Larsen & Toubro (L&T) posted a 12 per cent rise in both quarterly profit and gross revenue while order inflows jumped 21 per cent in October-December, but concerns remain on the robustness of future orders, the company said in a statement on Wednesday.
Recurring profit after tax of
the company in the December quarter rose to Rs 1,136 crore from of Rs 1,013.23 crore in the same three months last year. Net profit in the same quarter last year was Rs 1,121.75 crore.
Revenue grew to Rs 14,387.51 crore from Rs 12,869.34 crore while gross revenue rose 12 per cent to Rs 14,534 crore. Total expenses grew as well from Rs 11,788.96 crore to 12,911.85 crore, mainly on the back of an increase in consumption of construction material.
Total orders increased to Rs 21,722 crore, with orders from international businesses more than doubled to Rs 8,237 crore on the back of orders from West Asia,
the company said. International orders account for about 38 per cent of the company's total order book.
The results come amid concerns that the company's new orders are slowing down. "Not too many negative surprises. The larger question is about what they will give as guidance for the order book," said analyst Kunal Seth of Prabhudas Lilladher.
Analysts Sanjay Kadam, Prabhat Awasthi and Nipun Prem of Nomura Securities had a neutral rating on the stock for 2014/15 in an early January 2014 report.
Larsen & Toubro has maintained its guidance of a five per cent growth in order book for the fiscal year ending March, Reuters reported on Wednesday. The company cut its order growth outlook from 15 percent to five percent in October, according to Reuters.
The company announced it had separated its hydrocarbon business into a wholly-owned subsidiary effective April 2013.
L&T shares closed on the Bombay Stock Exchange at Rs 1,004.75 after touching a low of Rs 996.65. The stock closed at Rs 1,011.30 on Tuesday.
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