Home / Business / Revenue of L & T grows by 10%

Revenue of L & T grows by 10%

Mumbai:  Larsen & Toubro recorded Consolidated Gross Revenue of Rs, 21331 crore for the quarter ended September 30, 2014, registering a y-o-y growth of 10.4%. The International revenue during the quarter at Rs. 6562 crore constituted 31% of the total revenue. The Consolidated Gross Revenue for the half-year ended September 30, 2014 stood at ` 40454 crore and increased by 10.1% on y-o-y basis. The Company successfully secured fresh orders worth Rs. 39797 crore at consolidated level during the quarter ended September 30, 2014, registering a smart y-o-y increase of 17 %, sustaining the growth momentum in the first half of the current year. The International order inflow during the quarter at Rs. 6756 crore constituted 17% of the total order inflow. Major orders during the quarter were secured by the Infrastructure, Power and Hydrocarbon segments. On a cumulative basis, the order inflow for the half-year ended September 30, 2014 stood at Rs. 73205 crore, registering a y-o-y growth of 14 % on a large base. The International order inflow constituted 29% of the total order inflow for the half year. Consolidated   Order   Book   of   the   group   stood   at  Rs.  214429 crore   as   at September 30, 2014, higher by 14% on a y-o-y basis. International Order Book constituted 27% of the total Order Book. The Consolidated Profit after Tax (PAT) for the quarter July to September 2014 at Rs. 862 crore recorded a growth of 7% over the corresponding quarter of the previous year. For the half-year ended September 30, 2014 the PAT at Rs. 1829 crore registered an impressive growth of 45% on a y-o-y basis on the back of divestment gains. Infrastructure Segment Infrastructure Segment achieved Customer Revenue of Rs. 9633 crore for the quarter ended September 30, 2014 registering a healthy y-o-y growth of 27%, driven by surge in the execution by all the businesses of the segment. International sales constituted 27% of the total customer revenue of the segment during the quarter. Infrastructure Segment secured fresh orders at Rs. 19236 crore consistently  during the second quarter of the year vis-à-vis a large base of order inflow of Rs. 21080 crore recorded  in  the  corresponding  quarter  of  the  previous  year,  which  included  one big-size international order.The order inflow during the quarter mainly emanated from Buildings & Factories, Transportation Infrastructure, Power Transmission & Distribution and Water & Renewable Energy businesses. International orders contributed to around 16% of the total order inflow of the segment during the quarter. The  Order  Book  of  the  Segment  grew  16%  on  a  y-o-y  basis  and  stood  at Rs. 146634 crore as at September 30, 2014. The    segment    recorded    EBIDTA    margin    at    10.1%    during    the    quarter ended September 30, 2014 with larger proportion of jobs at early stage of execution, yet to achieve the margin recognition threshold. The segment had recorded margin of 12.3% in the corresponding quarter of the previous year on the back of realization of a large customer claim. Power Segment Power Segment recorded customer revenue of Rs. 1153 crore during the quarter ended September 30, 2014, registering a reduction of 20% over the corresponding quarter of the previous year due to low opening order book and majority of the newly secured orders being at initial stages of execution. Power  Segment  secured  fresh  orders  of  Rs.  7706  crore  for  the  quarter  ended September 30, 2014, as against ` 607 crore secured in the corresponding quarter of the previous year on the back of large size domestic orders bagged by the segment. The  Order  Book  of  the  Segment  grew  41%  on  a  y-o-y  basis  and  stood  at Rs. 23293 crore as at September 30, 2014. The segment EBIDTA margin stood at 13.2% for the quarter ended September 30, 2014 vis-à-vis 32.6% recorded in the corresponding quarter of the previous year, which included higher realization of margins on jobs nearing completion. Metallurgical & Material Handling (MMH) Segment The    Customer    Revenue    of    MMH    Segment    during    the    quarter    ended September 30, 2014 at ` 778 crore registered a y-o-y decrease of 32%, on account of lower opening order book and delay in receipt of new orders. MMH  Segment  secured  fresh  orders  of  `  2173  crore  during  the  quarter  ended September 30, 2014, compared to inflows of Rs 896 crore during the corresponding quarter of the previous year. The Order  Book  of  the  Segment  declined by  30%  on  a  y-o-y  basis  and stood at Rs. 10766 crore as at September 30, 2014. The  EBIDTA  margin  of  the  segment  declined  to  9.2%  for  the  quarter  ended September 30, 2014 vis-à-vis 16.1% recorded in the corresponding quarter of the previous year. Heavy Engineering Segment Heavy Engineering Segment achieved Customer Revenue of ` 810 crore for the quarter ended September 30, 2014, registering an y-o-y decline of 21% over the corresponding quarter of the previous year mainly on account of delayed order inflow and low order book.  International  sales  constituted  29%  of  the  total  customer  revenue  of  the segment Heavy  Engineering  Segment  secured  fresh  orders  valued  ` 606  crore,  during  the quarter ended September 30, 2014, registering a y-o-y decline of 38%. International orders constituted 58% of the total order inflow of the segment. The Order Book of the Segment stood at ` 8372 crore as at September 30, 2014. The  EBIDTA  margin  of  the  segment  stood  at  12.8%  for  the  quarter  ended September 30, 2014 vis-à-vis 14.9% recorded in the corresponding quarter of the previous year. Electrical & Automation (E&A) Segment E&A Segment recorded Customer Revenue of ` 1213 crore during the quarter ended September 30, 2014, registering a modest growth of 3% on y-o-y basis. International sales constituted 32% of the total customer revenue of the segment for the quarter ended September 30, 2014. The  EBIDTA   Margin   of  the   E&A   Segment   at   13.7%   for   the   quarter   ended September 30, 2014 recorded an improvement over the 11.5% earned during the corresponding quarter of the previous year due to reduction in input prices. Hydrocarbon Segment Hydrocarbon Segment achieved Customer Revenue of Rs. 1804 crore registering a y-o-y decline of 24% over the corresponding quarter of the previous year mainly on account of  low  opening  order  book  and  deferment  of project  awards.  International  sales constituted 61% of the total customer revenue of the segment for the quarter ended September 30, 2014. Hydrocarbon Segment secured fresh orders valued ` 2536 crore, during the quarter ended September 30, 2014, registering a decline of 40% as compared to the corresponding quarter of the previous year. International orders constituted 21% of the total order inflow of the segment. The Order Book of the Segment grew 19% on a y-o-y basis and stood at Rs. 15359 crore as at September 30, 2014. The  EBIDTA   margin  of  the  segment   was   negative   for  the   quarter   ended September 30, 2014 vis-à-vis positive margin of 8.7% recorded in the corresponding quarter of the previous year. The negative EBIDTA was on account of cost overrun on jobs nearing completion and under recovery of overheads. IT & Technology Services Segment IT & Technology Services Segment recorded Customer Revenue of Rs. 1854 crore during the  quarter  ended  September  30,  2014,  registering  a  y-o-y  growth  of  14%. International sales constituted 96% of the total customer revenue of the segment for the quarter ended September 30, 2014. The  EBIDTA  Margin  of  the  IT&TS  Segment  at  18.6%  for  the  quarter  ended September   30,   2014   recorded  a   decline   vis-à-vis   22.6%   earned  during   the corresponding quarter of the previous year due to relatively higher operating cost. Developmental Projects Segment Developmental Projects Segment recorded Customer Revenue of Rs. 993 crore during the quarter ended September 30, 2014, registering a substantial y-o-y growth. During the quarter, the Company commissioned the second unit of Rajpura Power Plant contributing significantly to the revenue growth. The EBIDTA Margin of the Developmental Projects Segment for the quarter ended September 30, 2014 stood at 16.0%. Financial Services Segment Financial Services Segment recorded Customer Revenue of Rs. 1604 crore during the quarter ended September 30, 2014, registering a y-o-y growth of 27%, driven by growth in loan book and disbursements. The operating margin of the Financial Services Segment for the quarter ended September 30, 2014 at 15.8% increased over 15.2% earned during the corresponding quarter of the previous period. “Others” Segment “Others” segment comprises Realty, Shipbuilding, Construction & Mining Equipment and Industrial Machinery & Product businesses. Customer Revenue of “Others” Segment during the quarter ended September 30, 2014 stood at Rs. 1489 crore registering a growth of 5% over the corresponding quarter of the previous year led by Shipbuilding and Valves businesses. International sales constituted 23% of the total customer revenue of the segment. During the quarter ended September 30, 2014, the segment EBIDTA margin improved to 19.0% as compared to negative margin of 7.0% during the corresponding quarter of the previous year consequent to lower losses in the Shipbuilding business. Outlook The domestic business sentiment has improved on the high expectations from the new government for reviving the growth momentum. Improving macro economic conditions on the back of stable currency rates, soft oil & other commodity prices have encouraged investment interests in the country. Decontrol of diesel prices, the ordinance for coal block e-auctioning, liberalized FDI norms in construction sector evidence  the  commitment  of  the  government  to  stimulate  growth  through  much needed reforms. De-bottlenecking of incomplete infrastructure projects, enabling credit growth and domestic manufacturing appear to be the initial thrust areas.Large green field investments in core sectors, however, are expected to take a few more quarters. While continuing to pursue international business on selective basis, the Company with its capabilities spanning across several core sectors, is poised to grow its domestic order book and maintain its leadership position as the opportunities emerge.

About Sanjay Trivedi

Sanjay Trivedi is honorary editor of Asia Times. He is senior Indian Journalist having vast experience of 25 years. He worked in Janmabhoomi, Vyapar, Divya Bhaskar etc. newspapers and TV9 Channel as well as www.news4education.com. He also served as Media Officer in Gujarat Technological University.

Check Also

First Pan-India survey to measure citizen connect with sanitation

New Delhi: Central Government today launched ‘Swachh Survekshan-2018’ to rank all the 4,041 cities and …