L&T net jumps 41%

Mumbai: Construction and engineer major Larsen & Toubro (L&T) announced a 41% jump in its net profit at Rs 201 crore for the July-September quarter, driven by higher profit margins across all units . Excluding extraordinary income, the net profit grew by 53% year-on-year to Rs 183 crore.

The company said its revenue in the fiscal second quarter totalled Rs 3,736 crore, a growth of 12% from the year-ago quarter. L&T said there was a 107 basis points improvement in its net profit margin to 5.3% of net sales, as against 4.23% a year ago.

The company’s engineering and construction (E&C) division reported a 9% growth in segment revenues to Rs 2,749 crore during the period, as a result, the profit margin from the E&C division increased by 220 basis points to 7.8% in the current quarter.

L&T said this was due to better selection of projects, savings from better procurement policies and control of contract execution costs.

The segment recorded a 15% growth in order booking at Rs 4,631 crore. The cumulative order booking till date at Rs 10,995 crore, jumped 59%. The total order backlog as on September 30, ’06 stood at Rs 29,270 crore.

The electrical and electronics division reported a 22.6% growth in revenues to Rs 467 crore in the current quarter due to productivity improvements initiated by the company.

Sales revenue of machinery and industrial products rose 23.8% to Rs 435.5 crore on the back of increased volumes, higher price differentials and improved manufacturing efficiency.EKC net up 46% at Rs 13.6 cr