Concerns over growth in L&T’s Q2 report

04 November 2015

India-based construction, technology and engineering conglomerate Larsen & Toubro (L&T) has reported a consolidated net profit for the quarter to September 2015, of Rs 995.9 crore (US$ 1.52 billion).

Year-on-year, the firm’s consolidated net profit growth stands as 16%.

In its statement, however, L&T predicts weakening currencies and slowing global economics may constrain growth prospects and impact on investment.

The firm has, therefore, cut its forecast for new orders growth from 15%, down to between 5% and 7%, while analysts from both HSBC and Barclays downgraded the company’s stock to neutral, anticipating new orders growth falling by 11% and 12% respectively.

L&T’s Q2 figures show consolidated net sales of Rs 23393 crore (US$ 35.7 billion), equating to growth of 15.51% over the quarter and year-on-year growth of 10.55%.

The firm reported quarterly growth in consolidated core operating profit of 3.25%, while its operating margin fell 1.8% in the quarter.

For the six-month period to September 30, 2015, net profit stood at Rs 1889.39 crore (US$ 2.88 billion), equating to a fall of 2.39% from the previous year.

L&T’s revenue, at Rs 23944 crore (US$ 36.5 billion), equates to year-on-year growth of 3.86%.

Following the results, L&T share prices fell by 5% on the Bombay Stock Exchange.

Latest News
Cummins promotes five to VP positions
Leaders in multiple business segments appointed to expanded roles
Axolift enters Poland with new distributor
Time is right for expansion of low level access in the country, says OEM
Makinex to distribute HG in North America
Deal follows similar agreement for Australia