L&T Q1 consolidated net jumps 22 pc to Rs 1,698 cr

Engineering giant Larsen & Toubro (L&T) on Tuesday reported a 22.42 per cent jump in consolidated net profit at Rs 1,697.62 crore for the first quarter ended June 2019. The conglomerate had clocked a net profit after tax and share in profit/(loss) of joint ventures/associates from continuing operations of Rs 1,386.62 crore in the corresponding quarter last year.

Its total income in the quarter under review rose 10.23 per cent to Rs 30,020.35 crore as compared with Rs 27,232.76 crore in the year-ago period. The company's total expenses rose to Rs 27,365.12 crore during the June quarter from Rs 25,215.51 crore in the year-ago period.

With Competition Commission of India according its approval for acquisition of L&T's electrical and automation business by Schneider Electric, the sale is likely to be completed within the next one year, it said. The electrical and automation business has hence been classified as 'discontinued operations', consolidated only at profit level in the profit and loss account, it said.

About Mindtree, L&T said: "As on June 30, 2019, the company held 28.86 per cent of paid-up equity share capital of Mindtree Limited. In absence of participation in management, the investment in equity shares has been classified as investment measured at fair value for the quarter ended June 30, 2019. Subsequent to acquisition of control, the financials will be consolidated as a subsidiary from second quarter of the financial year." The current shareholding of the company in Mindtree is 60.59 per cent, it said.

L&T said it won new orders worth Rs 38,700 crore at the group level during the quarter ended June 30, registering a growth of 11 per cent. International orders at Rs 9,005 crore constituted 23 per cent of the total order inflow.

Order wins in infrastructure and power segments were the major contributors to the order inflow during the quarter, it said. While orders from the central and state governments were affected during the general elections, strong PSU and private sector orders enabled growth for the quarter. "Consolidated order book of the group stood at Rs 2,94,014 crore as on June 30, 2019, with international order book constituting 21 per cent of the total order book," it said.