L&T net up; halves biz guidance to 5-7%
Engineering major Larsen & Toubro reported a 15.56 per cent rise in net profit for the September quarter at Rs 995.90 crore and halved its order inflow guidance to 5-7 per cent, as also lowered revenue projection to around 12 per cent, citing subdued investment climate.
Mumbai : Engineering major Larsen & Toubro reported a 15.56 per cent rise in net profit for the September quarter at Rs 995.90 crore and halved its order inflow guidance to 5-7 per cent, as also lowered revenue projection to around 12 per cent, citing subdued investment climate.
Net sales rose 10.55 per cent to Rs 23,393.22 crore in the reporting quarter from Rs 21,159.35 crore a year ago. "Despite efforts taken by the government, investment momentum is yet to pick up and as a result, order inflows are devoid of large investments. There is still capacity under-utilisation and, therefore, no investments are coming in capacity addition. Players are waiting for demand momentum to go up," group CFO R Shankar Raman said.
He further said, "If you look at the half-year position we are at Rs 55,000 crore in order inflows compared to Rs 73,000 crore a year ago. So, we are revising down our order inflow guidance to 5-7 per cent from 15 per cent initially projected as we believe the subdued investment environment to continue for some more time. Last year, order inflows rose 22 per cent to Rs 1.55 lakh crore.
"Accordingly, we also see a dip in revenue outlook to 10-15 per cent at March-end from our initial projection of 15 per cent for the year," Raman said. He, however, said there could be a few orders that could rattle up these numbers in a big way.
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