Mumbai: Larsen & Toubro Ltd (L&T) has announced
better-than-expected results for the three months period (second
quarter) ended September 30, 2007. The company’s quarterly result has
beaten analysts’ forecasts, and its shares recorded their largest gain
in the last 16 months.

The net profit of India’s largest engineering and construction
company has grown 73 percent to Rs 348 crore in the second quarter from
Rs 201.22 crore for the same quarter reviewed last fiscal.

The company achieved this growth on the back of more orders.

L&T CFO YM Deosthalee said, “Profit has gone up because we have
been spending considerable time in selecting the right jobs.”

The company has also posted a 47 percent leap in its gross sales,
which stood at Rs 5,574 crores as against Rs 3,804.30 crores for the
same time during last fiscal.

L&T’s order book has also expanded 26% to Rs 7,547 crore.

Mr. Deosthalee also said, “We have an order backlog of Rs 4,400
crores till September. So, we pick and choose the work. We are
concentrating on a few work that is reflecting on our profitability.”

Mr. Deosthalee said there has not been much impact of rupee admiration on the company’s (L&T) business,

“We have exposure to foreign currency in many ways. We have both assets and liabilities in foreign currency,” he also said.

In spite of the Indo-US nuclear deal taking place or not, L&T is optimistic about the nuclear programme in India.

L&T Board member K Venkataraman stated, “The Indian nuclear
programme would see a growth. More reactors are coming that would give
us business.”

The company will establish two mega incorporated and commercial
ports in the country with a total investment of about Rs 3,500 crore.