L&T has surprised the market by posting a net profit of Rs 1,137 crore as compared to expectation of Rs 876 crore. The surprise jump was on account of a Rs 214.3 crore of exceptional gains arising out of divestment of stake in subsidiary. While the stock has moved higher on announcement of its results, the important point to note is that the company after a long time has changed it hawkish stand on the outlook.
While the overall scenario continues to look be under pressure, L&T says that rebounding of industrial production and improved credit demand was seen in many sectors towards the end of the quarter. L&T was the most vocal among Indian corporate on the policy paralysis and slowdown in the economy.
As for its second quarter results, following are the key takeaways from it.
* Revenue grew by 17% to Rs 13,328 crore as compared to the previous year and a significant growth of 10% over the previous quarter.
* Order inflow improved remarkably by 30% at Rs 20,967 crore taking its overall order book position at Rs 1,58,528 crore. International order constitutes 12% of its order book. Engineering and Construction (E&C) segment has cornered the lion’s share of Rs 19,136 crore.
* Without taking extraordinary item the company posted a net profit of Rs 915 crore a growth of 15% over previous year.
* E&C division of the company was the result of its strong performance. The company posted a 18% growth in its topline as compared to the previous year and a 20% growth at its earnings before interest and tax (EBIT) level.
* Growth in Electrical and Electronics division, though looks subdued on a YoY basis at 3.8% has shown a sharp recovery from the previous quarter at 16% while its EBIT has posted a 80% growth.
* The company has posted a forex loss of Rs 33 crore
* L&T has taken credit of Rs 52.89 crore on account of reversal of provisions made in earlier year on account of its investment in Satyam Computers
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