* Revenues up 10 pct in Q1 at 191.23 bln rupees
* Dhamra port sale rescues company from loss
* Order book up 11 pct year-on-year
* Retains FY revenue, order inflow guidance
(Recasts, adds CFO quotes, details)
By Devidutta Tripathy and Tommy Wilkes
MUMBAI/NEW DELHI, July 28 Larsen & Toubro Ltd
(L&T), one of India's biggest conglomerates, dampened
hopes for a quick recovery in domestic demand and said
international orders were fuelling its growth.
The company, whose diverse activities from transport and
military equipment to financial services, make it a bellwether
of the Indian economy, said international orders doubled in the
three months to the end of June from a year ago and now
constituted 44 percent of new orders.
Across the business, orders rose a more modest 11 percent,
helped by major infrastructure, hydrocarbon and heavy
"Conditions in the domestic market are still sluggish,"
chief financial officer R. Shankar Raman told reporters on
Monday after L&T posted a 10 percent rise in first-quarter
"We are waiting for the domestic industry to pick up, growth
to pick up."
L&T has been expanding overseas to offset weak demand at
home amid a sharp economic downturn.
Profit after tax came in at 9.67 billion rupees, more than
double last year. This was aided by the sale of Dhamra port,
which netted it 13.5 billion rupees and rescued the firm from
posting a loss.
Other project sales during the quarter included stake sales
in L&T Finance Holdings Ltd and City Union Bank Ltd
Executive Chairman A.M. Naik said in May he saw an
improvement in the business outlook after the election of a new
government raised the possibility of the authorities approving a
backlog of projects that has hit infrastructure.
But the prospect of a revival in domestic demand is yet to
filter through to a big rise in new orders, nor encourage
infrastructure companies such as L&T to commit to new capital
expenditure - central to any sustained economic recovery -
because of spare production capacity.
Raman said he expected L&T to meet its guidance of 15
percent revenue growth and a 20 percent rise in order inflow in
2015. He retained his medium-term outlook for a gradual recovery
in India's economy.
Overseas orders helped L&T report a 10 percent rise in
first-quarter revenue to 191.23 billion Indian rupees ($3.2
billion) for the three months ended June 30, 10 percent higher
than the same period last year.
This compared compared with a 114.99 billion mean estimate
by analysts, data from Thomson Reuters showed.
"The company weathered (the) domestic slowdown by
strengthening its international presence in the select overseas
markets," L&T said in a statement.
Shares in L&T have gained around 55 percent this year. They
closed down 1 percent before the earnings announcement, compared
with a 0.5 percent fall in the benchmark index.
(1 US dollar = 60.1300 Indian rupee)
(Reporting by Tommy Wilkes and Devidutta Tripathy; Editing by