The News International Team
Engineering and construction major Larsen and Toubro has reported a 20.5 percent growth in standalone profit at Rs 1,042.2 crore in July-September quarter supported by other income. Profit in the year-ago period was Rs 864.8 crore.
Total income from operations grew by 3.3 percent to Rs 12,716.8 crore in the quarter ended September 2014 compared to Rs 12,308.4 crore in same quarter last year, driven by infrastructure segment.
Topline as well as bottomline beat street expectations for the quarter. Profit was expected at Rs 970 crore on revenue of Rs 13,653 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Other income during the quarter climbed 29.6 percent to Rs 603.33 crore from Rs 465.6 crore in June quarter while finance cost increased 31.4 percent to Rs 312.6 crore from Rs 237.88 crore year-on-year.
Standalone operating profit (earnings before interest, tax, depreciation and amortisation) grew by 13 percent year-on-year to Rs 1,341 crore and margin expanded by 90 basis points to 10.5 percent in the quarter gone by.
Margin was boosted by fall in employee expenses (down 7 percent to Rs 1,274.4 crore), and sales, administration and other expenses (down 48.4 percent to Rs 380.64 crore). However, depreciation cost jumped 23.4 percent year-on-year to Rs 237.6 crore during the quarter.
Infrastructure business did well during the quarter while other segments like power, heavy engineering, and metallurgical and material handling segments’ performance was disappointing.
Infrastructure business reported a healthy 23.3 percent growth at Rs 8,898 crore in September quarter compared to Rs 7,215 crore in the year-ago quarter with EBIT (earnings before interest and tax) margin falling 180 basis points year-on-year to 10.1 percent.
Revenue from power division dropped 13.4 percent to Rs 1,023 crore with the segment’s EBIT margin declining 750 bps to 4.8 percent and heavy engineering revenue slipped 24.3 percent to Rs 805 crore with the EBIT margin falling 450 bps to 11 percent during the same period.
Metallurgical and material handling business reported a 30 percent degrowth year-on-year at Rs 779 crore while electrical and automation business revenue rose by 3.6 percent to Rs 984.4 crore in the quarter gone by.
More to come..