New Delhi/Mumbai: Industrial group Larsen & Toubro reported a 27 percent drop in net profit in the three months through March, reflecting a fall in oil prices and a weak investment climate, but said it was more upbeat on prospects in its domestic market.
The company, whose performance is seen as a gauge of the health of the Indian economy, has been cautious in recent quarters on the outlook for domestic demand for its engineering, construction and manufacturing goods.
It said a subdued investment climate in the past year had limited opportunities for the capital goods and infrastructure sector, but it had seen signs of a pickup in India.
"India seems like it`s returning to (the recovery phase of the) investment cycle," Group Executive Chairman A M Naik told reporters.
The Mumbai-based company, which builds everything from metro trains to parts for the rocket that India last year sent to Mars, said its order book, about a third of which comprises international business, grew 28 percent over the last year.
But Naik said it would look to maintain a predominance of domestic business. "We will regulate international projects to a maximum of 30 percent," he said.
The company posted a net profit of Rs 20.7 billion (USD 325 million) for its fiscal fourth quarter, compared with Rs 28.4 billion in the same quarter last year.
