UPDATE 1-L&T sees signs of Indian push on infrastructure
* On track to meet 15-20 pct growth in full-year orders
* Q3 net profit up 13 percent on strong order wins
* Seeing delay in payment from clients (Adds detail, executive quotes, background)
By Kaustubh Kulkarni and Aditi Shah
MUMBAI, Jan 24 (Reuters) - Indian construction and engineering group Larsen & Toubro beat forecasts for quarterly profit and it was seeing early signs of a government push on infrastructure spending which could boost future orders.
Sluggish industrial capital expenditure has squeezed orders for engineering majors such as L&T and Bharat Heavy Electricals , while big ticket energy and infrastructure projects in the country have been stalled by a host of factors.
In September, the government announced reforms aimed at attracting more foreign investment in infrastructure and cutting back on budget-busting subsidies in Asia's third-largest economy where the rate of growth is near a 10-year low.
"There are early signs of a government push on infrastructure investments," L&T chief financial officer R Shankar Raman said on Thursday.
L&T said net profit rose 13 percent rise to 11.2 billion rupees ($209 million) in the three months to December - its third quarter - on the back of strong order wins. That compared with a Thomson Reuters I/B/E/S forecast for 10.8 billion rupees.
Sales rose 10 percent to 154 billion rupees, against a forecast for 161 billion.
The company, whose order book is regarded as a bellwether for corporate confidence in the economy, said it should meet guidance for 15-20 percent order book growth in the full year to March.
L&T, whose order book stood at 1.62 trillion rupees at the end of December, said it expected to win orders worth 200-250 billion rupees in the January-March period.
It won new orders worth 195 billion rupees in its third quarter, up 14 percent year-on-year.
While there has been a delay in payment from some clients, there was no threat of default, it said. ($1 = 53.6850 rupees) (Editing by Dan Lalor)
- Tweet this
- Share this
- Digg this
- Three major nations absent as China launches World Bank rival in Asia
- Microsoft sales beat Street hopes, cloud profits up
- China's Xiaomi shifts some smartphone user data out of Beijing on privacy concerns
- Gold sales jump about 20 pct for Diwali - trade body
- Google launches new email service dubbed "Inbox"
The latest Reuters poll of 20 economists taken over the past week shows Asia's third-largest economy will likely grow 5.5 percent this fiscal year and 6.4 percent the next, slightly better than 5.3 percent and 6.3 percent expected in the July poll. Full Article
Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw” Full Article