New Delhi: Larsen & Toubro reported a Gross Revenue of Rs 11375 crore for the quarter ended September 30, 2011, registering a growth of 20 per cent y-o-y.
Order inflow of Rs 16096 crore during the quarter took company's order books to Rs 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 Rs 798 crore recording an increase of 15 per cent over the corresponding quarter of the previous year.
The Engineering & Construction segment achieved Gross Revenue of Rs 9,704 crore for the quarter ended September 30, 2011 registering a growth of 21 per cent y-o-y. Execution of various ongoing projects is progressing as per schedule.
During the quarter, the segment secured orders totaling to Rs 14,552 crore with International orders constituting 35 per cent of the total order inflow. The segment margin at 10.7 per cent during the quarter was maintained almost at the same level seen in the immediately preceding quarter, despite an unabated increase in key input costs.
The Order Book of the segment stood at a healthy Rs 1,39,891 crore as at September 30, 2011. The segment recorded an operating margin of 11.9 per cent during the quarter ended September 30, 2011 aided by efficient project management and execution.
The Machinery and Industrial Products segment recorded Gross Revenue of Rs 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 per cent during the quarter ended September 30, 2011 mainly contributed by the Construction & Mining Machinery Business.
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.
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