Engineering and construction major Larsen and Toubro
first quarter earnings missed analysts' expectations on all parameters Friday.
Consolidated profit jumped 46 percent year-on-year to Rs 609.6 crore and revenue increased 9.1 percent to Rs 21,874 crore.
Profit was estimated at Rs 770 crore on revenue of Rs 22,477 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18. L&T received fresh orders worth Rs 29,702 crore during the quarter, registering a 14 percent growth compared with year-ago period, which was in-line.
International orders at Rs 13,211 crore constituted 44 percent of the total order inflow, the company said in its filing.
With this, consolidated order book of the group stood at Rs 2,57,427 crore as of June 2016, higher by 8 percent on yearly basis. While addressing press conference, R Shankar Raman, CEO said he expects guidance of fresh orders and revenue for FY17 to remain on course at 15 percent and 12-15 percent, respectively.
Profit was partly impacted by tax expenses that increased 28.2 percent to Rs 548.80 crore YoY but supported by finance cost (fell 13.3 percent) and higher other income (up 6.7 percent).
Staff cost increased 8.6 percent YoY due to increased international operations, Raman said. Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) grew by 16 percent to Rs 1,905 crore and margin expanded by 50 basis points to 8.7 percent YoY, which were far below analysts' expectations of Rs 2,500 crore and 11 percent, respectively.
Revenue from its infrastructure business (the major segment, contributed 41 percent to total revenue) grew by 9 percent year-on-year to Rs 9,094 crore driven by progress on jobs under execution in heavy civil & transportation infrastructure, power transmission & distribution and water & effluent treatment businesses, L&T said in its filing.
Power segment recorded revenue of Rs 1,722 crore for the quarter ended June 2016, a significant growth of 60 percent over year-ago period mainly led by progress on international jobs. Its hydrocarbon business clocked revenue of Rs 2,135 crore for the quarter, which fell marginally.
IT & technology services business fell 15 percent to Rs 2,353 crore and financial services grew by 17 percent to Rs 2,091 crore on yearly basis. The stock closed at Rs 1,558, down 1.20 percent ahead of quarterly earnings that announced after market hours. Posted by Sunil Shankar Matkar
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