BENGALURU (Reuters) -India's Larsen & Toubro reported a smaller-than-expected rise in quarterly profit on Monday, as moderate growth in order inflows hurt the infrastructure company.
L&T's consolidated net profit rose more than 24% to 25.53 billion Indian rupees ($313.25 million) in the third quarter ended Dec. 31 from a year earlier.
However, that missed analysts' average estimate of 26.50 billion rupees, according to Refinitiv IBES data.
The company reported a moderated 21% year-on-year rise in order inflows. They increased 23% in the second quarter.
Analysts often see L&T's results as an indication of capital expenditure in the economy because of the diverse nature and scale of projects the company undertakes.
L&T's biggest segment, infrastructure projects, saw a sharp moderation in order inflow growth, which stood at 28% on the back of a decline in international orders. In the previous quarter, the order inflow had more than doubled.
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"Major parts of the global economy continue to tread in turbulent waters due to policy tightening, high inflation, worsening financial conditions and continued trade disruptions due to the ongoing Russia-Ukraine conflict," the company said.
The company's total consolidated order book stood at 3.87 trillion rupees as of Dec. 31, compared with 3.72 trillion rupees at end-September.
L&T's revenue from operations rose over 17% to 463.90 billion rupees from a year earlier.
The company's shares closed 2.17% lower ahead of its results. They have risen 1.3% so far this year, following a 10% increase in 2022.
($1 = 81.50 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Maju Samuel)
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