Larsen & Toubro(L&T) , one of the biggest business conglomorates in India has posted a decent 25% rise in profits for the second quarter of FY10. The net profit stood at Rs 580.40 crore for the second quarter of FY10, compared with Rs 460.26 crore a year earlier. This included exceptional gains of Rs 107.84 crore.Apart from that the salient features of L&T’ second quarter results are:
- Sales for the quarter grew by 6%
- The operating margin improved to 10.6% for the quarter over 9.3%
- The company s order book stood at Rs 81,623 crore, registering an increase of 30%, year-on-year
- 47% growth in order inflows for the September quarter aggregating Rs 18,365 crore
- Gross sales revenues stood at Rs 7,936 crore
Marginal and Slow increase in Sales growth was attributed due to a delay in clearances from clients for a few project orders in the infrastructure sector.
However, what is heartening to know is the increase operating margin given the tough market conditions.L&T has managed to optimize its Bottom Lines quite strategically.The CFO, Mr. YM Deosthalee pointed out,
Judicious de-risking strategies, coupled with efficient treasury operations, have enabled the company to improve the operating margin
The Indian Stock Markets did not take the 25% increase to well.The L&T share price dropped 3.86% to close at Rs 1,608.50 on the BSE on Thursday.However, the share after going to 1600 levels yesterday has broken the 1700 mark and trading strong.
But, as i have always maintained, L&T is a stock which is a long term ploy.So, if you are sitting on cash and have a long term investing strategy, do try and accumulate at every low.With time, the value is only going to increase.