Larsen & Toubro Ltd. reported a rise in profit for consecutive nine quarters, while estimates made by analysts’ for operational performance totally surpassed.
In the period of January–March, the company reported net profit of Rs 3,167 Crore, which increased by 5% compared to year-on-year figures. This information was provided by India’s leading engineering and construction company in stock exchange notification. The analysts’ estimation of Rs 2,995 Crore fall short compared to Q4 results.
Segments such as heavy engineering, infrastructure, and hydrocarbons are accountable for the revenue rise by 11%, which makes up to Rs 40,678 Crore.
The company surpassed the order inflow guidance but missed its revenue estimation for the financial year 2017–2018. It witnessed a 5% rise in order intake, which totals up to Rs 49,560 Crore. Out of the total order flow, 18% came from global order inflow that stood at Rs 6,678 Crore.
Shankar Raman, Chief Financial Officer and Director of L&T said in press conference, “During 2018–2019, we anticipate around 30–32% international orders. We are also in plans to suspend some of our subscale businesses, even if they appear to be profitable.”
“The company also projects about 12–15% spur in revenue and 10–12% rise in order inflow in the present fiscal year. The margin is expected to remain upward bias of 25 basis point, with stability, Raman added.
“The company relies more on public and government sectors for order inflow, as it will take more two years for the private sector to stabilize,” Raman said.
In the start of this month, Larsen & Toubro announced about the selling of its automation and electrical business to Schneider Electric for Rs 140 Billion in cash. This is considered as the biggest divestment so far, and the discussion for the deal was initiated in 2015.