Larsen & Toubro Ltd., or L&T, India's largest engineering and construction conglomerate, reported a lower stand-alone net profit for the fourth-quarter, on higher finance costs.
To commemorate the occasion of the platinum jubilee of the company, it has recommended issue of bonus shares for the share holders.
Stand-alone Results
The Mumbai-based company posted a fourth-quarter stand-alone net profit of Rs.1,787.94 crore or Rs.28.86 per share, lower by seven percent than the Rs.1,920.41 crore or Rs.31.14 per share in the fourth-quarter of 2012.
Results for the quarter affected due to 132 percent surge in finance cost at Rs.280.89 crore vis-a-vis Rs.121.09 crore in Q4FY12.
The company reported 132 percent rise in finance costs at Rs.280.99 crore during the quarter as against Rs.121.09 crore of Q4 of FY'12, affecting its profitability during the January-March period.
Net sales for the quarter increased by ten percent to Rs.20,293.83 crore from the Rs.18,460.90 crore in the corresponding quarter last year, while other income totaled Rs.374.38 crore, compared with Rs.314.14 crore in the year-ago quarter.
Income during the quarter from sales in 'Engineering & Construction' segment increased by ten percent to Rs.18,392.26 crore from the Rs.16,793.67 crore in the fourth-quarter of 2012, while that of 'Electrical & Electronics' fell by two percent to Rs.1,116.86 crore from the Rs.1,143.45 crore in Q4FY12.
Income from 'Machinery & Industrial Products' during the quarter amounted to Rs.744.51 crore, up by nine percent from the Rs.681.31 crore in the preceding year quarter, whereas that from 'Others' was Rs.380.55 crore, compared with Rs.274.88 crore in Q4FY12.
Gross sales for the quarter totaled Rs.20,484.51 crore, compared with Rs.18,645.77 crore in the corresponding quarter last year, an increase of ten percent, as certain sectoral bottlenecks moderated the pace of execution.
For the fiscal year, the company's stand-alone net profit amounted to Rs.4,910.65 crore, compared with Rs.4,456.50 crore in 2012, reflecting a ten percent growth.
For the 12-month period, total net income from operations and other income amounted to Rs.67,724.16 crore, compared with Rs.54,508.80 crore last year, an increase of 24 percent.
For the full year, gross sales amounted to Rs.61,470.86 crore, compared with Rs.53,737.78 crore in the preceding year - a 14 percent growth.
Consolidated Results
L&T reported a fiscal year consolidated net profit, after minority interest and share of associates, of Rs.5,205.67 crore, up by 11 percent from the Rs.4,693.69 crore in 2012.
Total net income from operations and other income during the year grew by 16 percent to Rs.75,593.93 crore from the Rs.65,142.08 crore in 2012.
For the fiscal year, consolidated gross sales increased by 16 percent to Rs.75,195.31 crore from the Rs.64,960.08 crore a year-ago.
Order inflow during the year at Rs.88,035 crore took the company's order book to Rs.153,604 crore as at the end of March this year. International order book constituted 13 percent of the total order book, the company said.
Its Board recommended a dividend of Rs.18.50 per equity share of Rs.2 each for the fiscal year 2013, to be paid on August 26.
To commemorate the company's platinum jubilee, the Board also considered issuance of bonus shares in the ratio of one equity share of Rs.2 each for every two equity shares held by members.
The Board further considered a Scheme of Arrangement between the company and L&T Hydrocarbon Engineering Ltd. (LTHE), a wholly-owned subsidiary and their respective share holders and Creditors, which envisages business transfer of the Hydrocarbon Independent Company undertaking along with related assets and liabilities into LTHE for a cash consideration of Rs.1,760 crore.
Considering the growth opportunities in the hydrocarbon sector, the need for strengthening managerial bandwidth etc, it is considered desirable to presently keep LTHE as a wholly-owned subsidiary of the company. There would be no issue of shares by LTHE to the share holders of the company pursuant to transfer of hydrocarbon business, the company said.
L&T shares at the BSE closed Tuesday's trading at Rs.1,517.10, down Rs.89.55 or 5.57 percent on a volume of 12,39,000 shares.
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