Mumbai, May 14, 2012: Larsen & Toubro recorded Gross Revenue of 18646 crore for
the quarter ended March 31, 2012, registering a growth of 21.1 % y-o-y.
Excluding exceptional and extraordinary items, Recurring Profit after Tax (PAT) for the
quarter ended March 31, 2012 stood at 1877 crore recording an increase of 24.8% over
the corresponding quarter of the previous year.
Order inflow for the year at 70574 crore took the Company’s Order Book to
145723 crore as on March 31, 2012. The order inflow and order book include
proportionate share in the Integrated Joint Ventures.
Decelerating growth momentum across the sectors during 2011-12 led to deferment of
capital expenditure and fresh investment decisions. Still the Company was able to garner
sizeable new orders mainly from Building & Factories, Infrastructure, Power Transmission & Distribution and Minerals & Metals sectors.
Gross revenue for the year 2011-12 at 53738 crore registered a growth of 21.3% over the
Recurring Profit after Tax (PAT) for the year 2011-12 stood at 4413 crore recording an
increase of 20.1 % over the previous year.
The Board of Directors has recommended a dividend of 16.50 per equity share.
Engineering & Construction (E&C) Segment
E&C recorded Net Segment Revenue of 16638 crore for the quarter ended
March 31, 2012 recording a y-o-y growth of 23.4%.
For the year ended March 31, 2012, Net Segment Revenue was 46768 crore registering
23.3% growth over the previous year. Most of the ongoing projects progressed well
contributing to growth in the revenue. This revenue growth was achieved despite
deferment of some of the anticipated orders and delays in obtaining clearances in a few
projects in the infrastructure, power, power transmission & distribution sectors, having
temporary impact on the pace of activities.
During the year, the Segment secured orders totaling to 63574 crore with International
orders constituting 18% of the total order inflow. The Order Book of the Segment stood at
a healthy ` 143448 crore as at March 31, 2012 with international orders constituting 12% of
the total order book.
The Segment recorded Operating Margin of 12.7% during the year ended March 31, 2012
through an efficient management of costs and its superior execution capabilities.
Electrical & Electronics (E&E) Segment
E&E recorded Net Segment Revenue of 998 crore for the quarter ended
March 31, 2012 recording a y-o-y growth of 15%.
For the year ended March 31, 2012, Net Segment Revenue stood at 3251 crore recording
a moderate y-o-y growth of 8.4%. Subdued industrial demand and intense competition led
to lower off-take.
The Segment Operating Margin for the quarter ended March 31, 201 was 16.9% recording
an improvement over the immediately preceding quarter when the margin stood at 10.9%.
For the year ended March 31, 2012 the Operating Margin stood at 12.7%.
Machinery & Industrial Products (MIP) Segment
During the quarter ended March 31, 2012, MIP recorded Net Segment Revenue of
740 crore. International sales constituted 14% of the total revenue.
Net Segment Revenue for the year ended March 31, 2012 stood at 2775 crore
International sales doubled during the year.
The Segment earned an Operating Margin of 19.8% and 19.5% during the quarter and year
ended March 31, 2012 respectively.
Consolidated Group Financials
The Consolidated Group revenue at 64960 crore for the year grew by 23.8% vis-à-vis
52470 crore for the previous year. The Consolidated Group Profit After Tax excluding
extraordinary and exceptional items, stood at 4649 crore.
With continued thrust on capacity argumentation for current execution & future growth,
the Company invested 1730 crore in 2011-12 mainly to acquire various plant and
equipment for the businesses in Engineering and Construction segment and for expansion
of the Modular Fabrication Yard at Kattupalli, Tamilnadu.
The manufacturing facilities at Vadodara and Ahmednagar for the Electrical and
Electronics business segment are being ramped up to reap benefits of low cost locations.
At the Consolidated Group level, the port facility at Dhamra developed under Joint
Venture with Tata Steel Limited commenced commercial operations during the year
2011-12. The manufacturing facility for Power Auxiliaries at Hazira, Gujarat has also been
commissioned during the year.
The facilities for manufacture of heavy forgings at Hazira and the shipyard-cum-port
facility at Kattupalli are at an advanced stage of completion and are scheduled to
commence commercial operations during the year 2012-13.
The year 2011-12 witnessed policy uncertainties, slowdown in investment momentum,
aggressive competition, high inflation and significant rupee depreciation. Most of the
major world economies have also been facing sluggish economic environment.
Gradual upswing in Indian economy is expected in the year 2012-13 with increasing
government focus on certain sectors such as infrastructure, power, oil & gas and fertilizer,
which are of key importance to the Company. A clear policy direction from the
government, inflation containment, benign interest rate environment, and improved fiscal
situation are key to revive the growth momentum & investment confidence.
The performance of the Company has strong linkage with the economic environment in
India as well as the key markets such as the Middle East. While strengthening its domestic
presence, the Company is accelerating forays into its major international markets backed
by its superior delivery capabilities, execution excellence, proven track record and
healthy balance sheet. Given its large Order Book, the Company is well positioned to
sustain revenue growth momentum in the medium term.