L&T's Q1 PAT vaults 111% to Rs967 crore; revenues rise 10% to Rs19.123 crore

Engineering and construction giant Larsen & Toubro Ltd (L&T) has reported a 111 per cent year-on-year increase in overall after-tax profit (PAT) at Rs967 crore against a PAT of Rs459 crore in the corresponding quarter of the previous year.

L&T also reported consolidated gross revenue of Rs19,123 crore ($3.2 billion) for the quarter ended 30 June 2014, recording a year-on-year growth of 10 per cent.

International revenue during the quarter at Rs4,781 crore constituted 25 per cent of the total revenue.

The company won fresh orders worth Rs33,408 crore at consolidated level during the quarter ended 30 June 2014, registering a year-on-year growth of 11 per cent, on a large base.

Overseas order inflow during the quarter at Rs14,754 crore grew more than 2 times on a year-on-year basis, constituting 44 per cent of the total order inflow. Major orders during the quarter were secured by the Infrastructure, Hydrocarbon and Heavy Engineering segments.

L&T makes transport and military equipment and has been expanding overseas to offset weak demand at home.

International orders doubled and now constitute 44 per cent of total new orders, the company said, while the new order book across its business is up 11 percent on the same period last year, helped by major infrastructure, hydrocarbon and heavy engineering orders.

"The company weathered domestic slowdown by strengthening its international presence in the select overseas markets," L&T said in a statement.

Executive chairman AM Naik said in May he saw improvement in the business outlook after the election of a new government raised the possibility of the authorities approving a backlog of projects that has plagued the infrastructure industry.

But the prospect of a revival in domestic demand is yet to encourage infrastructure companies such as L&T to commit to new capital expenditure - central to any sustained economic recovery - because of spare production capacity, analysts said.

L&T shares have gained around 55 per cent this year. They closed down 1 per cent before the earnings announcement.