Mumbai, Oct 21 (IANS): Engineering and construction major Larsen and Toubro (L&T) Friday reported a 15 percent increase in net profit at Rs.798 crore for the quarter ended Sep 30, despite a slowdown in various sectors it operates.

Gross revenues rose 20 percent to Rs.11,375 crore in the July-September period, the company said in a regulatory statement.

"Order inflow of Rs.16,096 crore during the quarter takes the order book to Rs.142,185 crore as on Sep 30. Despite the current slowdown in new investment decisions in many industries and uncertainly in global markets, the company succeeded in garnering orders," said the L&T statement.

The orders were mainly from the buildings and factories, hydrocarbons, minerals, metals and power transmission sectors, the company added.

The engineering and construction segment, the company's core business, saw gross revenues rise 21 percent to Rs.9,704 crore.

L&T, however, said the economy was witnessing a slowdown and capacity addition in several sectors had tapered off.

"The current economic slowdown in investment momentum witnessed in almost all sectors of the economy is constraining growth opportunities. Intensifying competition, high inflation, elevated interest rates, volatile financial markets and delayed policy intervention are posing considerable challenges for decision makers," said the company.

"Irrational pricing offered in the market place for the limited pie of opportunity is yet another factor to reckon in selection of remunerative projects. "

At the Bombay Stock Exchange, the L&T scrip was trading 1.29 percent lower at Rs.1,367.20 in afternoon trade.