OREANDA-NEWS. January 29, 2013. Larsen & Toubro recorded Gross Revenue of Rs.15581 crore for the quarter ended December 31, 2012, taking total Revenue for nine months period April-December 2012 to Rs. 40987 crore, higher by 17%.

The upward trend in the Order Inflow was sustained in the third consecutive quarter of the year. Order Inflow at ' 19545 crore during the quarter October-December 2012 recorded y-o-y growth of 14%, translating into a cumulative growth of 22% in the Order Inflow for the nine months period April-December 2012. International order inflow contributed 22% of the total order inflow during the quarter. The major orders came from Building & Factories, Infrastructure and Power Transmission & Distribution sectors.

Order Book stood robust at ' 162334 crore as at December 31, 2012. International Order Book constituted 13% of the total Order Book.

Profit after Tax (PAT) for the quarter October-December 2012 stood at ' 1122 crore, recording an increase of 13% over the corresponding quarter of the previous year. For the nine months period ended December 31, 2012, the recurring PAT at ' 2926 crore registered a y-o-y growth of 15%.

Engineering & Construction (E&C) Segment

The E&C Segment achieved Net Segment Revenue of ' 13858 crore for the quarter ended December 31, 2012 registering a y-o-y growth of 11%. While growth in the segment revenue was moderate during the quarter, the cumulative revenue growth is higher at 19% for the nine months period April-December 2012. International sales constituted 23% of the total revenue as compared to 9% in the corresponding quarter of the previous year.

The businesses of the E&C Segment garnered fresh orders of ' 17818 crore, during the quarter ended December 2012 registering a y-o-y growth of 16% despite weak investment climate and intense competition. International orders constituted 22% of the total order inflow of the segment as compared to 10% in the corresponding quarter of the previous year.

The Order Book of the Segment stood at ' 159985 crore as at December 31, 2012.

The Segment recorded cumulative Operating Margin for the nine months period April-December 2012 at 11.1%. Being essentially project business, the margins for the Segment do not accrue evenly during the quarters.

Electrical & Electronics (E&E) Segment

E&E Segment recorded Net Segment Revenue of ' 830 crore for the quarter ended December 31, 2012, recording a moderate y-o-y growth of 7%, as demand in the domestic market decelerated. International sales, however, increased by 26%, contributing to 11% of the total segment revenue for the quarter.

The Segment recorded an improved Operating Margin at 14.3% during the quarter, aided by better price realization.

Machinery & Industrial Products (MIP) Segment

During the quarter ended December 31, 2012, MIP Segment recorded Net Segment Revenue of ' 563 crore during the quarter ended December 31, 2012. The revenue was lower as compared to the corresponding quarter of the previous year due to slowdown in manufacturing, especially in capital goods sector. International sales constituted 23% of the total revenue as compared to 19% in the corresponding quarter of the previous year.

The Segment recorded Operating Margin at 18% during the quarter ended December 31, 2012.

“Others” Segment

This Segment, which includes Integrated Engineering Services and Property Development, recorded Revenue of ' 330 crore, registering a smart growth of 30% over the corresponding quarter of the previous year. The Segment recorded Operating Margin of 23.2% for the quarter ended December 31, 2012.

Outlook

The Indian economy continues to grapple with the challenges of persisting inflationary pressures, volatile currency market, tight liquidity conditions and impaired investment climate. Speedy implementation of proposed reforms and follow-through policy measures hold the key for rediscovery of the growth momentum. The recent policy measures aiming to correct the fiscal situation and boost growth are expected to improve economic outlook in India and revive the investments in the various sectors in which the Company operates.

Global economic conditions remain fragile, though green shoots of recovery are visible. The Company is strengthening its presence in select international markets, amidst intense competition.

Braving these challenges, the Company has delivered consistent performance on the back of execution efficiencies, proven track record, diversified portfolio and international presence. With strong order book, the Company expects to sustain its growth in the period ahead.