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L&T's Q3 net up 62 pc at Rs 640 million

Larsen and Toubro has posted a net profit of Rs 640 million for the quarter ended December 31, 1998, marking a growth of 62 per cent over the corresponding period last year.

Net sales and income from operations was Rs 17.89 billion, an increase of 42 per cent over the third quarter in the previous year.

The profit before tax for the last quarter stood at Rs 700 million. During the nine months ended December 31, 1998, the company recorded a net profit of Rs 2.62 billion and net sales and other income of Rs 48.82 billion.

The company fared well in spite of an unprecedented slowdown in the Indian economy. The cement industry continues to be in a difficult situation, with excess supply in certain markets and substantial drop in export price realisation.

The order-booking of the company was eight per cent higher than last year at Rs 52.52 billion, while the order-backlog as at December 31, 1998 was Rs 60.99 billion.

Apart from its traditional areas, L&T is making a major thrust in oil and gas, power plant equipment/projects and infrastructure areas. The company is presently executing power plant orders from Haldia Petrochemicals Limited. IPCL of Usha Martin Industries Limited, in the infrastructure area, the company has been executing some projects on build-own-transfer and build-own-operate basis like Narmada bridge and Coimbatore bypass.

The Hi-Tec Ccity project in Hyderabad has already been executed. Work is proceeding apace on the company's portion of the Bombay-Pune expressway and the flyover at Sirsi Circle in Bangalore.

The electrical business of the company continues to perform very well and has outperformed the market substantially in the current year.

The company's cement plants at various locations are operating very well. The company commenced commercial production at its cement plant in Andhra Pradesh with a capacity of 2 million tonnes, during the third quarter of the year. The cement and clinker sales during the first nine months of the year at 6.52 million tonnes show an increase of 39 per cent.

The company has entered into an agreement with the promoters of Narmada Cement Company Limited for the purchase of their shareholding in that company. The company has also made an announcement for the purchase of the balance shares from the public.

An offer in this regard will be made shortly. With the additional 1.4 million tonnes of capacity of NCCL, the company's total cement capacity will be 12 million tonnes.

UNI

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