The Hindu : Business : L&T's smart showing in Q1

Online edition of India's National Newspaper
Friday, Jul 29, 2005

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Business

L&T's smart showing in Q1

Staff Correspondent

E&C bags new orders for Rs. 3,154 cr.

MUMBAI: Larsen & Toubro reported a smart increase of 31 per cent in its net profit for the quarter ended June 2005 at Rs. 105 crore (Rs. 80 crore) on gross sales of Rs. 3,155 crore (Rs. 2,688 crore). Revenues from international operations continue to grow and is 17 per cent of total sales and service income.

The profit before tax was at Rs. 208 crore, up 37 per cent, but this also included an extraordinary income of Rs. 49 crore relating to milk processing equipment business.

L&T's engineering and construction (E&C) segment booked new orders amounting to Rs. 3,154 crore; an increase of 45 per cent and of these, export orders accounted for Rs. 814 crore or 26 per cent of orders booked. The E&C segment recorded revenues of Rs. 2,629 crores; an increase of 15 per cent over the year-ago period, and export sales amounted to Rs. 510 crore. The company has a healthy order backlog of Rs. 17,814 crore.

During the period, the electrical and electronics segment achieved a 30 per cent increase in gross revenues at Rs. 330 crore and export orders were up at Rs. 35 crore. Among the diversified businesses, the construction equipment business, welding systems and industrial products witnessed good demand growth.

The segment recorded sales of Rs. 238 crore, registering 20 per cent growth in its revenues over the previous year quarter. Also, realising the growing potential of the ready mix concrete business, the company is taking suitable initiatives to enlarge its market presence.

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