The Hindu Business Line : L&T net profit up 3% at Rs 998 cr in March quarter

Mr A.M. Naik (left), Chairman & Managing Director, Larsen & Toubro, and Mr V.M. Deosthalee, Chief Financial Officer, at a press conference in Mumbai on Thursday. - Shashi Ashiwal

Our Bureau

Mumbai, May 28 Larsen & Toubro has reported a net profit of Rs 998.52 crore for the quarter ended March 31, 2009 which marks a three per cent increase from Rs 966.76 crore posted in the same period last year. Net sales at Rs 10,468.98 crore were up 24 per cent from Rs 8,466.87 crore.

The order book at Rs 70,319 crore for the fiscal showed a 33 per cent increase. The board of directors has recommended a dividend of Rs 10.50 an equity share.

The company has also made a provision of Rs 186.28 crore for its investment in Satyam Computer Services in which it has a 12 per cent stake. L&T had coughed up nearly Rs 670 crore for this stake at an average price of Rs 82 a share. Tech Mahindra finally picked up Satyam at Rs 58/share.

“This provision has been made as a measure of abundant caution and in consonance with its commitment to acquire the investment from L&T Capital Company at book value as and when such transfer takes place,” the company said.

The Chairman and Managing Director, Mr A.M. Naik, said at a press conference here on Thursday that the company was looking at the “future with optimism”.

According to him, the order book situation, from the viewpoint of Government projects, took a hit during the last six months thanks to the elections. With things in place now at the Centre, the company expects projects in sectors like infrastructure, power and oil and gas to get a fillip in the coming months.

However, the delay had slowed down growth in the first quarter of this fiscal but an improvement was expected from July-August. “The future looks good. We expect our order books to grow 25 per cent and sales by 15 per cent,” Mr Naik said.

L&T has also earmarked Rs 1,200 crore as capital expenditure for this fiscal going up to nearly Rs 2,000 crore in the near future. Investments of Rs 1,500 crore have been set aside for the nuclear forge shop and Rs 800 crore in offshore installation.

The company’s shares closed at Rs 1,341.80 on the BSE on Thursday, up 2.32 per cent.