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| Edited By: G Seetharaman |Source: DNA |Updated: Mar 17, 2018, 04:51 AM IST
Engineering & construction major Larsen & Toubro is hopeful of a reversal of the lull in overseas orders in the coming months, said senior vice-president of finance, R Shankar Raman.
For the June quarter, overseas order inflows more than trebled to Rs1,700 crore over year-ago period. The overall order inflows, on the other hand, rose 63% to Rs15,626 crore.
Out of the company’s current backlog of Rs107,816 crore, about 7% is contributed by overseas projects, of which nearly 75-80% is in the Middle East.
“Though we are still not back to 2007 levels in order inflows in that region, there is a recovery,” Raman said.
The company earlier this year said it looks to up order inflows this year by 25% from Rs70,000 crore in 2009-10. The share of overseas projects in that is expected to double to about 10-12%. “Hydrocarbon and airport orders are quite sizeable so it could even be 15%,” said Raman.
He said that owing to the fallout of the Dubai financial crisis and crash of crude prices, the hydrocarbon sector is taking longer to bounce back than power and water.
“We are quite bullish on water treatment & contracts and airport projects in Oman,” Raman said.
L&T has bid for a couple of airports there. In the first quarter, L&T’s topline, which was below market expectations, rose 6.5% to Rs7,913 crore and net profit from normal operations rose 15% to Rs666 crore. In the June quarter of fiscal 2010, L&T had an exceptional gain of Rs1,020 crore from the sale of its stake in UltraTech Cement.
