Indian building materials group Larsen & Toubro Ltd. (L&T) has reported a 7.77% drop in net profit at INR 315.06 crore in the year ended 31 March, 2001 as against INR 341.63 crore in the previous year…
Indian building materials group Larsen & Toubro Ltd. (L&T) has reported a 7.77% drop in net profit at INR 315.06 crore in the year ended 31 March, 2001 as against INR 341.63 crore in the previous year. The board of directors has recommended a dividend of INR 6.50 per share amounting to INR 161.85 crore. The amount includes pro-rata dividend of INR 4 lakh in respect of 104,318 shares effective 1 September, 2000. According to the company, the fiscal period under review was a challenging year as the domestic manufacturing sector had turned in a “disappointing” performance. “The strategy to maintain market share in a very competitive environment marked by low levels of investment has pushed the margins down,” L&T said in a release. Unremunerative cement prices for most part of the year also added to the pressure on its margins. However, during the three months ended March 31, 2001, the company has posted a 61% rise in net profit at INR 250.40 crore, as compared to INR 155.43 crore in the corresponding period last year. Net sales for the quarter have gone up to INR 2,479.68 crore. The rubber processing machinery division of LTM Ltd., a wholly-owned subsidiary, was transferred at book value to L&T with effect from 1 April, 2000. Accordingly, the figures for the quarter/year ended 31 March, 2001 include the operating results of the division. Figures for the previous year are not comparable to that extent, said a press release. For the year, the company“s net sales rose to INR 7,825.43 crore from INR 7,423.81 crore. Other income was at INR 209.66 crore against INR 175.30 crore the year before. Other income included gains arising out of extinguishing of debt of INR 50.18 crore for the year ended 31 March, 2001. The company commissioned its cement grinding plant of one million tonne capacity at Arakkonam in Tamil Nadu in December 2000. With this unit, the total cement capacity has gone up to 15 million tonnes per annum. There was no production at the Nashik Glassworks during the first quarter of the year 2000-01, as the furnace had to be shut down for repairs. L&T has recorded a 24% growth in order booking. The order backlog at the year end was INR 9,760 crore, higher by 38% over the previous year-end“s position of INR 7,069 crore.