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L&T Q4 revenue grows 21per cent

Business

Larsen & Toubro recorded gross revenue of Rs18646 crore for the quarter ended March 31, 2012, registering a growth of 21.1 per cent y-o-y.
Excluding exceptional and extraordinary items, Recurring Profit after Tax (PAT) for the quarter ended March 31, 2012 stood at Rs1877 crore recording an increase of 24.8 per cent over the corresponding quarter of the previous year.
Order inflow for the year at Rs70574 crore took the company’s order book to Rs 14,5723 crore as on March 31, 2012. The order inflow and order book include proportionate share in the Integrated Joint Ventures.
Decelerating growth momentum across the sectors during 2011-12 led to deferment of capital expenditure and fresh investment decisions. Still the company was able to garner sizeable new orders mainly from Building & Factories, Infrastructure, Power Transmission & Distribution and Minerals & Metals sectors.
Gross revenue for the year 2011-12 at Rs53738 crore registered a growth of 21.3 per cent over the previous year.
Recurring Profit after Tax (PAT) for the year 2011-12 stood at Rs4413 crore recording an increase of 20.1 per cent over the previous year.

Engineering & Construction (E&C) Segment
E&C recorded Net Segment Revenue of Rs16,638 crore for the quarter ended March 31, 2012 recording a y-o-y growth of 23.4 per cent.
For the year ended March 31, 2012, Net Segment Revenue was Rs 46768 crore registering 23.3 per cent growth over the previous year. Most of the ongoing projects progressed well contributing to growth in the revenue. This revenue growth was achieved despite deferment of some of the anticipated orders and delays in obtaining clearances in a few projects in the infrastructure, power, power transmission & distribution sectors, having temporary impact on the pace of activities.
During the year, the Segment secured orders totalling to Rs63574 crore with International orders constituting 18 per cent of the total order inflow. The Order Book of the Segment stood at a healthy Rs14,3448 crore as at March 31, 2012 with international orders constituting 12 per cent of the total order book.
The Segment recorded Operating Margin of 12.7 per cent during the year ended March 31, 2012 through an efficient management of costs and its superior execution capabilities.

Electrical & Electronics (E&E) Segment
E&E recorded Net Segment Revenue of Rs998 crore for the quarter ended March 31, 2012 recording a y-o-y growth of 15 per cent.
For the year ended March 31, 2012, Net Segment Revenue stood at Rs3251 crore recording a moderate y-o-y growth of 8.4 per cent. Subdued industrial demand and intense competition led to lower off-take.
The Segment Operating Margin for the quarter ended March 31, 201 was 16.9 per cent recording an improvement over the immediately preceding quarter when the margin stood at 10.9 per cent. For the year ended March 31, 2012 the Operating Margin stood at 12.7 per cent.

Machinery & Industrial Products (MIP) Segment
During the quarter ended March 31, 2012, MIP recorded Net Segment Revenue of Rs740 crore. International sales constituted 14 per cent of the total revenue.
Net Segment Revenue for the year ended March 31, 2012 stood at Rs2775 crore International sales doubled during the year.
The Segment earned an Operating Margin of 19.8 per cent and 19.5 per cent during the quarter and year ended March 31, 2012 respectively.

Consolidated Group Financials
The Consolidated Group revenue at Rs64960 crore for the year grew by 23.8 per cent vis-à-vis Rs52470 crore for the previous year. The Consolidated Group Profit After Tax excluding extraordinary and exceptional items, stood at Rs 4649 crore.

Capacity Ramp-up
With continued thrust on capacity argumentation for current execution and future growth, the Company invested Rs1730 crore in 2011-12 mainly to acquire various plant and equipment for the businesses in Engineering and Construction segment and for expansion of the Modular Fabrication Yard at Kattupalli, Tamilnadu.
The manufacturing facilities at Vadodara and Ahmednagar for the Electrical and Electronics business segment are being ramped up to reap benefits of low cost locations.
At the Consolidated Group level, the port facility at Dhamra developed under Joint Venture with Tata Steel Limited commenced commercial operations during the year 2011-12. The manufacturing facility for Power Auxiliaries at Hazira, Gujarat has also been commissioned during the year.
The facilities for manufacture of heavy forgings at Hazira and the shipyard-cum-port facility at Kattupalli are at an advanced stage of completion and are scheduled to commence commercial operations during the year 2012-13.

Outlook
The year 2011-12 witnessed policy uncertainties, slowdown in investment momentum, aggressive competition, high inflation and significant rupee depreciation. Most of the major world economies have also been facing sluggish economic environment.
Gradual upswing in Indian economy is expected in the year 2012-13 with increasing government focus on certain sectors such as infrastructure, power, oil & gas and fertilizer, which are of key importance to the company. A clear policy direction from the government, inflation containment, benign interest rate environment, and improved fiscal situation are key to revive the growth momentum & investment confidence.
The performance of the company has strong linkage with the economic environment in India as well as the key markets such as the Middle East. While strengthening its domestic presence, the Company is accelerating forays into its major international markets backed by its superior delivery capabilities, execution excellence, proven track record and healthy balance sheet. Given its large Order Book, the Company is well positioned to sustain revenue growth momentum in the medium term.

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