Larsen and Toubro
(L&T) disappointed street on Monday with the third quarter profit
falling 14.6 percent year-on-year to Rs 1,060 crore on standalone basis, dented
by lower operating income, higher depreciation and interest costs. However, the
profit was supported by other income of Rs 621.9 crore (up 43.7 percent Y-o-Y).
In Q3FY14, the profit was boosted by an exceptional gain of
Rs 104.4 crore.
Net sales grew 4.2 percent to Rs 14,995 crore during
October-December quarter from Rs 14,388 crore in same quarter last year,
impacted by power, metallurgical & material handling and heavy engineering
segments.
Operating profit dropped 6.3 percent year-on-year to Rs
1,569 crore and margin declined 110 basis points to 10.5 percent in the quarter
gone by, which both were lower than expectations of Rs 1,826 crore and 11.4
percent, respectively. Depreciation cost increased 32.5 percent and interest
cost jumped 72 percent Y-o-Y.
Consolidated net profit increased 9 percent to Rs 867 crore
and revenue rose 9.7 percent to Rs 23,878 crore during the quarter. Analysts
had expected profit of Rs 1,075 crore on revenue of Rs 22,850 crore. While
addressing press conference, however, R Shankar Raman (chief financial officer)
says L&T is working hard to maintain 10-15 percent revenue (consolidated)
growth band for this year, adding there is no change in this revenue growth
target.
Earlier in Q2, the company had slashed revenue growth
guidance to 10-15 percent from 15 percent. According to him, roads, power and
metallurgy segments will continue to drag down topline while transport, infra,
water and renewables will drive topline going ahead.
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