The Hindu Business Line : L&T net rises 26% on ‘other income’ boost

Mumbai, Oct. 22 Engineering and construction major Larsen & Toubro has posted a 26 per cent rise in net profit at Rs 580 crore for the quarter ended September 30 against Rs 460 crore logged during the corresponding period last year.

The company has recorded ‘other income’ of Rs 218 crore as part-payment from sale of its RMC (ready-mix concrete) business. L&T had sold it to Lafarge for Rs 1,480 crore last year. It has also registered a gain of Rs 27.38 crore in exceptional income.

Gross sales for the quarter grew marginally by two per cent to Rs 7,936 crore (Rs 7,776 crore). The corresponding quarter of the previous year recorded sales of Rs 275 crore from divestment of its ready-mix concrete business.

Sales were subdued primarily due to delay in clients according clearance to some infrastructure projects last year, besides poorer off-take in industrial products and machinery.

Order book

However, the company registered a 47 per cent growth in order inflow for the quarter totalling Rs 18,365 crore (Rs 12,453 crore). The order book stood at Rs 81,623 crore, an increase of 30 per cent over the previous year period.

Mr Y.M. Deosthalee, Chief Financial Officer, said at a press meet here on Thursday that the company had improved its operating margin to 10.6 per cent for the quarter over 9.3 per cent in the corresponding period last year.

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