India’s Larsen and Toubro (L&T) reported third-quarter profit below estimates on Tuesday as higher costs countered sustained infrastructure demand.
The company’s consolidated net profit rose 15% to Rs 2,947 crore ($355 million) for the quarter ended Dec. 31, but fell short of analysts’ estimate of Rs 3,304 crore, as per LSEG data.
Owing to the variety and scale of orders under its portfolio, L&T’s results are often seen as a bellwether for capital expenditure in the Indian economy.
Total expenses for the quarter jumped more than 19% to Rs 51,194 crore, overshadowing an 18.8% rise in revenue from operations – its slowest topline growth since the last two quarters.
An upbeat capital expenditure environment, helped by the government’s spending push ahead of the general polls this year, had benefitted Indian construction companies.
However, analysts said the capex enthusiasm is moderating as elections near, with slowed tendering activity amid fewer project announcements.
The company’s shares closed 2% lower ahead of the results.
First Published: Jan 30 2024 | 6:47 PM IST
