Larsen & Toubro recorded Gross Revenue of INR 14155 crore for the quarter ended December 31st 2011, registering a growth of 23 % YoY. Order inflow for the quarter at INR 17129 crore grew by 28%YoY, taking the Company’s Order Book to INR 145768 crore as on December 31st 2011. With its proven track record, the Company was able to secure fresh orders from Infrastructure, Building & Factories, Power Transmission & Distribution and Minerals & Metals sectors despite a subdued investment sentiment prevailing during the quarter.
Recurring Profit after Tax for the quarter from normal operations stood at INR 992 crore recording an increase of 22 % over the corresponding quarter of the previous year.
Engineering & Construction Segment
E&C achieved net Segment Revenue of INR 12424 crore for the quarter ended December 31, 2011 registering a YoY growth of 26%. Execution of various ongoing projects is on schedule.
During the quarter, the Segment secured orders totaling to INR 15283 crore with International orders constituting 10 % of the total order inflow.
The Order Book of the Segment stood at a healthy INR 143341 crore as at December 31st 2011.
With focused execution and efficient project management, the Segment recorded Operating Margin at 11.5% during the quarter ended December 31, 2011 vis à vis 11.6% for the corresponding quarter of the previous year.
Electrical & Electronics Segment
E&E net Segment Revenue stood at INR 776 crore for the quarter ended December 31st 2011 recording only a marginal YoY growth as a result of low industrial off take, liquidity crunch in the domestic market and sluggish international demand.
During the quarter ended December 31st 2011, the Segment produced an Operating Margin of 10.9% in line with the margin levels seen in the preceding quarters during the year. High input costs not fully passed on to the customers, due to stiff competition in the market place, kept the margins range bound.
Machinery & Industrial Products Segment
MIP recorded net Segment Revenue of INR 703 crore during the quarter ended December 31st 2011. The export revenues doubled during the quarter.
The Segment earned an Operating Margin of 20.3% during the quarter ended December 31, 2011 mainly contributed by the Construction & Mining Machinery and Valves Business.
Outlook
The quarter witnessed project deferments, aggressive competition, slow reform process and sharp rupee depreciation. The recent increase in IIP numbers and easing of inflationary pressures, however, reflect some positive developments.
The Company is leveraging on its leadership position to fully exploit the available domestic opportunities. Emerging prospects in the Hydrocarbon and Infrastructure sectors in preferred overseas markets mainly in the Middle East and South East Asian countries are also being targeted. The Company is optimistic about its success in these markets in the near to medium term.
