MUMBAI (Reuters) - Larsen & Toubro (LART.NS), India’s top construction and engineering company, beat estimates on Monday with a 15 percent rise in September quarter net profit as it completed more projects, and said new orders rose 30 percent from a year ago.
The Mumbai-based company said recurring net profit rose to 9.15 billion rupees ($170.4 million) during the second quarter of the fiscal year from 7.98 billion rupees a year earlier.
The company also reported one-time gains on account of a stake sale in a subsidiary and reversal of provision in relation to the stake it earlier held in Mahindra Satyam (SATY.NS). Including the one-time gains, L&T’s net profit was 11.37 billion rupees.
Sales rose 17.3 percent to 131.95 billion rupees.
The market had forecast a net profit of 8.76 billion rupees, according to Thomson Reuters I/B/E/S.
Larsen’s order book, which is an indication of its outlook, stood at 1.58 trillion rupees at the end of September. L&T said it won new orders worth 209.67 billion rupees in July-September, up 30 percent from year ago.
The company forecast in May a 15-20 percent growth both in revenue and orders during the current fiscal year ending March 2013.
India’s economic growth languished at 5.5 percent in the quarter to June, near its slowest in three years, as a sense of policy inertia stifled corporate sentiment, curbed capital expenditures and delayed big-ticket projects.
The country’s industrial output fell 0.2 percent in July and rose 2.7 percent in August.
Larsen is focusing on ramping up overseas growth, particularly in the Middle East, Brazil and Turkey, looking to offset the slowdown at home and aiming for foreign markets to account for 25 percent of revenue by 2016.
Shares in the company, valued by the market at $18.7 billion, were trading 2.2 percent higher after the results, in a Mumbai market .BSESN that was up 0.5 percent.
($1= 53.69 rupees)
Reporting by Henry Foy, Writing by Prashant Mehra; Editing by Muralikumar Anantharaman