L&T profits rise 39% in Q3

By Mike Hayes30 January 2017

India’s largest construction firm, Larsen & Toubro (L&T), has announced a 38.85% rise in net profit in its latest quarterly report.

The reported figure for net profit for October to December 2016, is Rs972 crore (US$ 143 million), compares with 700.34 crore ($103 million) for the same period in the previous year.

L&T also reported total income from operations from October to December 2016, of Rs 26,287 crore (US$ 3.87 billion), up from Rs 25,928 (US$ 3.82 billion) during the same period in the previous year.

The firm said moves by the Indian government to demonetise the domestic economy were impacting on its business in a way that is currently hard to quantify.

Indian prime minister Narendra Modi said last year he was hoping to promote a switch from cash to digital transactions, thereby curbing the flow of ‘black money’.

In its statement, L&T said "Government`s initiatives to curb the parallel economy and make a transition to cashless economy have caused disruption whose impact on the business sentiment is yet to be conclusively assessed."

The company went on to say its focus would be on "selective pursuit of opportunities, working capital reduction, cost optimisation through supply chain efficiencies and productivity enhancement through digitisation initiatives.

"Aided by these initiatives, the company is hopeful of a satisfactory performance, given the current business environment."

Latest News
3 ways to improve your company’s ESG performance
Creative ITC expert reveals the IT changes that can help construction businesses meet ESG targets
Safety, synergies and supply chain: an interview with Sims HD CEO
Erika Sims and her team are full speed ahead in the realm of heavy haul in the Sunshine State.
Batteries for MEWPs: The latest and most effective options
How the industry is finding solutions to make working in the field more sustainable