Larsen & Toubro has posted a 33 per cent rise in net profit for the first quarter of the fiscal as revenues rose and margins from its key engineering and construction (E&C) business looked up.
Gross sales rose by 53 per cent. The E&C segment, which accounts for more than two-thirds of the company’s revenues, reported an operating profit margin of 10.5 per cent from 9.6 per cent a year ago, almost a whole percentage point higher.
Margins were fortified through better contract management and continuous cost optimisation in executing large turnkey projects, a company statement said.
Operationally the quarterly results are better than the net profit increase suggests: The company had made foreign exchange gains during the year-ago quarter, which, if excluded, would have meant a net profit increase of 70 per cent, the statement said.
Margins were higher across all business segments, barring the Electrical and Electronics segment, which was affected by both input cost increases and lower sales volumes where sales were up only 7 per cent while margins declined.
Gross sales rose by 53 per cent. The E&C segment, which accounts for more than two-thirds of the company’s revenues, reported an operating profit margin of 10.5 per cent from 9.6 per cent a year ago, almost a whole percentage point higher.
Margins were fortified through better contract management and continuous cost optimisation in executing large turnkey projects, a company statement said.
Operationally the quarterly results are better than the net profit increase suggests: The company had made foreign exchange gains during the year-ago quarter, which, if excluded, would have meant a net profit increase of 70 per cent, the statement said.
Margins were higher across all business segments, barring the Electrical and Electronics segment, which was affected by both input cost increases and lower sales volumes where sales were up only 7 per cent while margins declined.
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