Mumbai, October 18, 2010: Larsen & Toubro reported Gross Sales of
9342 crore, registering 18% y-o-y growth for the quarter ended
September 30, 2010.
On the back of a 63% growth in Order
Inflow recorded by the Company in the
quarter ended June 30, 2010, the
Company has registered a growth of
11% in Order Inflow during the quarter
ended September 30, 2010 over the
same period of the previous year. This
translates into a cumulative growth of
29% in Order Inflow during the first half of the current year.
The Order Book as at September 30, 2010 was 115393 crore. |
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Profit after Tax (PAT) for the quarter stood at 765 crore, recording an increase
of 32% over the corresponding quarter of the previous year.
The Company’s Operating Margin for the quarter improved to 10.8%.
Engineering & Construction Segment
The speed of execution of major project orders picked up during the quarter as
scheduled. Accordingly, the Segment achieved Customer Sales of ` 7861 crore,
recording a growth of 18% over the corresponding quarter of the previous year.
The Segment is well poised to continue the revenue growth momentum during
the second half of the financial year.
The Segment bagged a few large-value orders during the quarter from the Power
and Infrastructure sectors. The Segment Order Inflow for the quarter ended
September 30, 2010 stood at 18880 crore.
Segment Margin for the quarter was recorded at an improved 12.6%, supported
by higher proportion of margin yielding sales.
Electrical & Electronics Segment
Acute competition in the domestic electrical sector coupled with the continued
slowdown in the international market, impacted the Segment Sales during the
quarter. Customer Sales for the quarter stood at 641 crore. With this, the
Segment recorded Sales of 1364 crore for six months ended
September 30, 2010, registering an increase of 10 % over the same period of the
previous year. Higher input costs and the resistance of the market to absorb a
price increase, led to a pressure on the Segment’s margin which saw a drop of
two percentage points.
Machinery & Industrial Products Segment
The buoyant industrial and construction sectors helped the Segment register a
healthy growth of 37% in Customer Sales to 681 crore for the quarter ended
September 30, 2010. The Segment recorded a margin of 18.4% for the quarter,
even on the larger volume of sales.
Outlook
Given the country’s confident GDP growth projection for the current year, the
opportunity landscape for the Company is expected to be much wider and
deeper in most of the sectors of the economy. However, the capital goods
industry will have to be prepared for much higher level of global and local
competition, while grappling with the general inflationary trend seen in the recent
times. The Company with its superior execution capabilities and a strong
organization base, is well positioned to convert these opportunities into profitable
business prospects, providing visibility to sustained revenue growth in the near to
medium term.
UNAUDITED STAND-ALONE FINANCIAL RESULTS FOR THE QUARTER ENDED
SEPTEMBER 30, 2010
NOTES FOR THE QUARTER ENDED SEPTEMBER 30 , 2010
Segment-wise Revenue, Result and Capital Employed
in terms of Clause 41 of the listing agreement :