OREANDA-NEWS. Larsen & Toubro announced its results for the quarter and nine months ended December 31, 2013, excluding the performance of Hydrocarbon business segment, which has been transferred with effect from April 1, 2013 to L&T Hydrocarbon Engineering Limited, a wholly owned subsidiary of the Company upon sanction of the scheme by the Hon'ble Bombay High Court vide order dated December 20, 2013. Consequently, the performance for the previous quarter ended September 30, 2013 and the numbers relating to the previous periods have been suitably restated.

Larsen & Toubro recorded Gross Revenue of 14534 crore for the quarter ended December 31, 2013, registering a y-o-y growth of 12% with progress on various jobs under execution. The Gross Revenue for nine months period April-December 2013 at 36934 crore, grew by 9% on y-o-y basis.

Order Inflow at 21722 crore during the quarter October-December 2013 recorded y-o-y growth of 21%, sustaining the growth during the first half of the current year, despite prevailing weak investment climate. Major orders came from the Infrastructure segment. The International order inflow during the quarter at 8237 crore, more than doubled on the back of major orders secured in the Middle East. The cumulative order inflow for the nine months period April-December 2013 stood at 67371 crore registering a 23% growth over the nine months period of the previous year.

Order Book at 171184 crore as at December 31, 2013, grew 13% on a y-o-y basis. International Order Book constituted 15% of the total Order Book.

The recurring Profit after Tax (PAT) for the quarter October-December 2013 stood at 1136 crore, recording an increase of 12 % over the corresponding quarter of the previous year. After considering the exceptional gain on dilution of part stake in a subsidiary company, the overall PAT grew by 22% during the quarter.

Infrastructure Segment

Infrastructure Segment achieved Customer Revenue of 8818 crore for the quarter ended December 31, 2013 registering a healthy y-o-y growth of 23%, driven by Buildings and Factories, Power Transmission & Distribution, Water & Renewable Energy and Transportation Infrastructure businesses. International sales constituted 16% of the total customer revenue of the segment.

Aided by order wins in the international markets, the order inflows of Infrastructure segment at 18390 crore sustained the accelerated growth momentum registering a growth of 36% during the quarter ended December 31, 2013. International orders constituted around 41% of the total order inflow of the segment.

The Order Book of the Segment grew 28% on a y-o-y basis and stood at 130464 crore as at December 31, 2013.

The segment recorded improved EBIDTA margin at 11.4% during the quarter October-December 2013 vis-Ё¤-vis 10.3% recorded in the corresponding quarter of the previous year on progress of jobs under execution.

Power Segment

Power Segment achieved Customer Revenue of 1212 crore for the quarter ended December 31, 2013 registering a y-o-y decrease of 30%, due to declining order book.

Multiple unresolved sectoral issues have resulted in near halt in the order inflows of the Power Segment, which could secure fresh orders of 200 crore, during the quarter ended December 31, 2013.

The Order Book of the Segment declined 14% on a y-o-y basis and stood at 15030 crore as at December 31, 2013.

The segment recorded EBIDTA margin of 6.4% for the quarter October-December 2013 vis-Ё¤-vis 7.2% recorded in the corresponding quarter of the previous year.

Metallurgical & Material Handling (MMH) Segment

The Customer Revenue of MMH Segment during the quarter ended December 31, 2013 at 1521 crore remained flat on account of reduced opening order book.

MMH Segment secured fresh orders of 329 crore, during the quarter ended December 31, 2013, impacted by continued order deferrals due to slow-down in minerals and metals industry.

The Order Book of the Segment declined 30% on a y-o-y basis and stood at 14084 crore as at December 31, 2013.

The EBIDTA margin of the segment stood at 16.1% for the quarter October-December 2013 vis-Ё¤-vis 17.6% recorded in the corresponding quarter of the previous year.

Heavy Engineering Segment

Heavy Engineering Segment achieved Customer Revenue of 1046 crore for the quarter ended December 31, 2013 registering an impressive growth of 28% over the corresponding quarter of the previous year aided by good progress in the execution of jobs. International sales constituted 33% of the total revenue of the segment.

The businesses of the Heavy Engineering Segment secured fresh orders of 559 crore, during the quarter ended December 31, 2013. International orders constituted 23% of the total order inflow of the segment.

The Order Book of the Segment stood at 7484 crore as at December 31, 2013.

During the quarter October-December 2013, the segment EBIDTA margin improved to 17.2% as compared to 15.3% earned during the quarter October-December 2012, on the back of improved execution efficiencies.

Electrical & Automation (E&A) Segment

E&A Segment recorded Customer Revenue of 939 crore for the quarter ended December 31, 2013, recording a growth of 13% over the corresponding quarter of the previous year. International sales contributed to 13% of the total segment revenue for the quarter.

The EBIDTA Margin of the E&A Segment at 14.9% for the quarter October-December 2013 recorded an improvement over the 14.3% earned during the quarter October-December 2012.

Machinery & Industrial Products (MIP) Segment

MIP Segment recorded Customer Revenue of 436 crore for the quarter ended December 31, 2013 registering a decline of 23% over the corresponding quarter of the previous year.

The Valves business and Industrial Cutting Tools business of the segment have been transferred to subsidiary companies during July - September 2013. The sales for October - December 2013 are, therefore, not comparable with corresponding quarter of the previous year.

The Segment EBIDTA Margin at 15.2% during the quarter ended December 31, 2013 recorded a decline compared to 17.9% earned during the quarter October-December 2012 due to lower sales on account of business restructuring.

Ў°OthersЎ± Segment

Ў°OthersЎ± segment comprises Integrated Engineering Services (IES), Shipbuilding and Property Development business.

Customer Revenue of Others Segment at 563 crore for the quarter ended December 31, 2013 registered a growth of 34% over the corresponding quarter of the previous year led by good performance of the IES business. International sales constituted 70% of the total revenue of the segment.

During the quarter October-December 2013, the segment EBIDTA margin improved to 18.7% as compared to 14.1% earned during the quarter October-December 2012.

Outlook

Persisting inflation, tight liquidity, elevated interest rates and macro-economic & policy uncertainties have impacted the investment sentiment in the domestic economy. Sliding GDP and IIP numbers are indicative of the task ahead for achieving economic recovery. Data from other major economies around the world in the meanwhile suggest improving conditions overseas.

Thus, while the company continues to focus on maximizing the domestic opportunities, it is strengthening its international presence in select overseas markets. Competitive value proposition to the clients and disciplined execution have helped the company sustain its profitable growth momentum.

Presence in the diverse sectors, healthy order book, proven track record and strong balance sheet are the key enablers for the Company to steer through the near to medium term challenges and meet its growth aspirations.