UPDATE 1-L&T sees signs of Indian push on infrastructure

Thu Jan 24, 2013 6:52pm IST

Stocks

   

* 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)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Coal Block Allocation

Coal Block Allocation

Government urges Supreme Court to not cancel some 'illegal' coal mines  Full Article 

Modi in Japan

Modi in Japan

Japan and India agree to boost strategic ties at summit  Full Article 

Basel III Norms

Basel III Norms

RBI amends Basel III guidelines for banks  Full Article 

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Current Account

Current Account

Balance of payments surplus for third straight quarter  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Managing Share Sales

Managing Share Sales

Govt seeks bids from banks to manage PFC, REC share sales   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage