L&T's Q2 profit zooms 84 per cent to Rs 1,435 crore

Engineering major Larsen & Toubro (L&T) today reported an 84 per cent jump in net profit at Rs 1,435 crore for the September quarter, backed by exceptional gains of Rs 400 crore that included income from sale of its insurance business.
The firm had clocked a net profit of Rs 778.37 crore in the corresponding period a year ago.
Total consolidated income of the company rose 8 per cent to Rs 25,010.70 crore in July-September this fiscal, from Rs 23,123.48 crore during the same quarter last year.
Its total expenses rose to Rs 23,173.16 crore, from Rs 21,521.06 crore.
"We are witnessing a return in investments and awarding of contracts has risen. We expect this momentum to sustain through the subsequent quarters. The revenues have increased 8 per cent with international revenue contributing Rs 8,930 crore, or 36 per cent of the total revenue," Chief Financial Officer R Shankar Raman told reporters here.

The company recorded an income of Rs 400 crore during the quarter, which led to 84 per cent jump in profits for the period against the July-September quarter last fiscal.

As a part of implementation of its strategic plan, the company had divested the general insurance business.
"Inclusive of the gain on divestment, the company recorded overall profit after tax (PAT) for the September quarter at Rs 1,435 crore as against PAT of Rs 778 crore a year ago," Raman said.
The company booked new orders worth Rs 31,119 crore during the quarter out of which the international contracts contributed 24 per cent or nearly Rs 7,386 crore.

Major orders were secured by infrastructure and hydrocarbon segments. The consolidated order book of the group stood at Rs 2,51,773 crore as on September 30, 2016, higher by 4 per cent from the year-ago level.
Subrahmanyan also said various policy measures to
facilitate ease of doing business, expansion of hi-tech manufacturing base and attracting foreign investments need to be implemented well to revive investments and sustain economic growth in the long run.
On the international front, the company continues to strengthen its position and pursue select prospects in the core infrastructure and energy sector.
"We are well placed to benefit from the emerging opportunities and sustain its leadership position across the sectors," he added.

During April-September, the company laid off 14,000 jobs across its businesses.
"It was a strategic decision that if a business is not in good shape, we are trying to resize it. If there is time to get the business back to normalcy, it is important to reduce the under-recoveries. So, (in) the jobs that we are finding redundant, we are allowing people to move on," Raman said.
Subrahmanyan added that the company has tried to look at its businesses in a different way to remain competitive.
"We have tried to make our back offices more digital. There are certain low performers (businesses) and we have to relook at them. In the competitive world, you need to be agile and smart and to move forward. We have an employee base of 1.2 lakh. This laying off was a one-time move and not a target that we are running behind," he added.