OREANDA-NEWS. October 24, 2011. Larsen & Toubro reported Gross Revenue of 11375 crore for the quarter ended September 30, 2011, registering a growth of 20 % y-o-y.

Highlights

Quarter ended September 30, 2011

 

t crore

Y-o-Y Growth

Gross Revenue

11375

20%

Profit before tax excluding other income

806

16%

Other Income

363

-4%

Profit After Tax from ordinary activities (recurring PAT)

798

15%

Order inflow of 16096 crore during the quarter takes the Company's Order Book to 142185 crore as on September 30, 2011. Despite the current slowdown in new investment decisions in many industries, and uncertainty in global markets, the Company succeeded in garnering orders against stiff competition, mainly from Building & Factories, Hydrocarbon, Minerals & Metals and Power Transmission and Distribution sectors.

Profit after Tax (PAT) for the quarter from ordinary activities stood at 798 crore recording an increase of 15 % over the corresponding quarter of the previous year.

Engineering & Construction (E&C) Segment

The E&C Segment achieved Gross Revenue of 9704 crore for the quarter ended September 30, 2011 registering a growth of 21% y-o-y. Execution of various ongoing projects is progressing as per schedule.

During the quarter, the Segment secured orders totaling to 14552 crore with International orders constituting 35 % of the total order inflow.

The Order Book of the Segment stood at a healthy 139891 crore as at September 30, 2011.

The Segment recorded an Operating Margin of 11.9% during the quarter ended September 30, 2011 aided by efficient project management and execution.

Electrical & Electronics (E&E) Segment

The E&E Segment Gross Revenue at 782 crore for the quarter ended September 30, 2011 recorded a growth of 21 % over the corresponding quarter of the previous year, even in a sluggish market.

The Segment margin at 10.7% during the quarter was maintained almost at the same level seen in the immediately preceding quarter, despite an unabated increase in key input costs.

Machinery & Industrial Products (MIP) Segment

The MIP Segment recorded Gross Revenue of 666 crore during the quarter ended September 30, 2011 on the back of a general downtrend in the industrial off-take.

The Segment earned an Operating Margin of 17.7% during the quarter ended September 30, 2011 mainly contributed by the Construction & Mining Machinery Business.

Outlook

The current 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 challenge for the decision-makers. Irrational pricing offered in the market place for the limited pie of opportunity, is yet another factor to reckon in selection of remunerative projects to participate in.

While keeping itself ever agile to win every worthwhile prospect meriting attention, be it in the domestic or in the international market, the Company is focused on timely execution of its large order book.

In the medium term, the Company sees itself in a strong position to maintain its revenue growth trajectory and stay totally prepared to benefit from opportunities when they materialise.