Performance for the year ended
March 31, 2008
Mumbai, May 29, 2008: Larsen & Toubro Limited (L&T), the leading engineering
and construction conglomerate, has reported excellent results for the year ended
March 31, 2008, reflecting an all-round superior business performance. The
Gross Sales & Service revenue registered a y-o-y growth of 40.7% at Rs. 25187
crore. The share of revenue from international operations constituted 16.4% of
the Gross Revenue. Continuing the growth trend set in the past, the Order Inflow
rose by 37% over the previous year, which validates the Company’s leadership
The Board has also recommended for the approval of the shareholders, an issue of bonus equity shares in the ratio of 1:1 ( one bonus share of Rs.2/- each for every equity share held).
The strong financial performance of the Company was adequately
complemented by the other companies in the Group leading to a growth in Group
performance both in terms of Revenue and Profitability. The Group registered a
y-o-y increase of 43% in the Total Income which stood at Rs. 29848 crore for the
year ended March 31, 2008.
Engineering & Construction (E&C) Segment
The core infrastructure and industrial sectors have attracted sizeable investment
in the recent times, driven by sound fiscal and economic policies of the
government. The manufacturing sector is also on a growth mode to meet not only
the domestic demand but also provide a cost effective sourcing avenue to some
of the global majors. Capitalizing on the opportunities provided by these sectors,
the E&C segment reported a significant growth in its Order Inflows during the
E&C segment revenues for the year ended March 31, 2008 at Rs. 19377 crore registered an increase of 44% when compared to the previous year. The share of export revenues represented 16 % of the year’s segment revenues.
Driven by operational excellence initiatives and improved execution efficiencies, the segment Operating Margin saw a noteworthy improvement of 1.3 percentage point for the year ended March 31, 2008 over the previous year.
Electrical & Electronics Segment
Electrical & Electronics segment reported a steady growth in its Order Inflows
and Sales, reflecting the Company’s dominant position in this sector. The
segment revenues at Rs. 2663 crore for the year ended March 31, 2008 was
higher by 29% when compared to the previous year. Electrical Standard
Products and Systems, Control & Automation and Petrol Dispensing Pump
businesses realized higher volumes and price differentials from the market so as
to neutralize the adverse impact of rising input costs. In addition, capacity
enhancement and improved product offerings enabled it to optimize the cost of
production and distribution, thereby sustaining the profitability during the year.
Backed by strong demand from the manufacturing and construction sectors, the
segment posted gross revenues of Rs. 2411 crore during the year ended March
31, 2008 registering a healthy increase of 31% over the previous year. Increased
While macro economic fundamentals continue to inspire confidence, the recent slowdown in the industrial sectors, coupled with rising input costs, particularly oil price, and credit squeeze, may have an impact on the capital goods sector’s ability to sustain the growth momentum in the medium term. However, in view of the current pace of infrastructure development in the country and the neighbouring regions, the immediate prospects for growth appear promising. The company’s businesses are geared up to harness the full potential of the available opportunities. With a sizable order book, the company is reasonably confident of producing healthy results in the near term.