Notwithstanding the tough business environment both in India and in West Asia, engineering and construction major Larsen & Toubro Ltd. (L&T) has reported a 27% growth in consolidated net profit for the second quarter ended September 30 to Rs. 1,820 crore from Rs. 1,435 crore in the same period last year.
The profit included exceptional gains of Rs. 137 crore which came from disinvestment of a subsidiary, the company said.
Without the exceptional item, net profit rose 63% to Rs. 1,683 crore.
In the quarter, the company reported a 6% rise in consolidated gross revenue to Rs. 26,447 crore. This was primarily on account of the headwinds the company faced during ‘this challenging period’, it said.
International revenue in the quarter at Rs. 9,517 crore constituted 36% of total revenues. The infrastructure segment, which contributes to almost half of total revenues, was impacted by delays in clearances, work front availability and right of way issues. Besides, GST transition challenges impacted execution progress in the quarter, top company officials said.
L&T secured orders worth Rs. 28,732 crore in the quarter amid a subdued business environment, policy uncertainties and delayed implementation. International orders at Rs. 10,420 crore constituted 36% of the total order inflow.
Overall, the order inflow was 8% lower than in the same period last year.