Monday, January 28, 2008

L&T net up 40% in Dec`07 quarter

Larsen & Toubro, India`s largest engineering and construction conglomerate registered a 40.10% growth in net profit to Rs 4,817.90 million for the quarter ended December 2007 as compared with Rs 3,439.00 million for the corresponding quarter last fiscal.


Quarterly results (Rs in mn)
As at December
2007(3)
December
2006(3)
%Change
Net Sales 63,826.80 41,184.20 54.98
Net Profit 4,817.90 3,439.00 40.10
EPS 16.66 - -
Net sales for the quarter jumped 54.98% to Rs 63,826.80 million for as against Rs 41,184.20 million for the quarter ended December 2006.

Total income for the quarter rose 52.69% to Rs 64,835.50 million as against Rs 42,463.50 million for the same quarter a year ago.

The earnings per share (EPS) of the company stood at Rs 16.66 in the quarter ended December 2007.


Business Profile

L&T is India`s largest engineering and construction conglomerate with additional interests in electricals, electronics and IT. A strong customer-focus approach and constant quest for top-class quality have enabled L&T to attain and sustain leadership position over 6 decades.

L&T enjoys a premiere brand image in India and its international presence is on the rise, with a global spread of over 30 offices and joint ventures with world leaders.

Highlights of the quarter

With a view to generate 5,000 MW power in the next five years, L&T floated a power generation arm, L&T Power Development. The company would invest Rs 200 billion in this firm.

During the quarter, Larsen & Toubro (Oman) LLC bagged a project of Muscat Golf Course valued at Rs 4.33 billion.

It also secured a contract fr
om Mumbai Metropolitan Region Development Authority (MMRDA) for the construction of Elevated Access Road from Western Express Highway (WEH), Mumbai, to the Chatrapathi Shivaji International Airport (CSIA).The contract, valued at Rs 2.87 billion, has to be completed in 30 months.

L&T acquired 26% equity in Feedback Ventures, a consulting firm in the infrastructure space, for Rs 400 million.

In November, the company in consortium with Paul Wurth has secured an order worth Rs 5,807.4 million from SAIL. This contract is for the upgradation of blast furnace No 2 at Bokaro steel plant on a turnkey basis.


Recent Developments

On Jan. 23, 2008, L&T (Oman) LLC, a subsidiary of L&T and one of the leading engineering and construction majors in Oman, bagged 3 EPC contracts worth USD 116 million (Rs 4.57 billion), from Oman Electricity Transmission Company (OETC) for electrical grid stations and associated transmission system in Oman. It also received another order to build a USD 48 million (Rs 1.89 billion) factory complex in Oman.

Further, L&T also bagged an EPC order valued at Rs 4.11 billion from the Al Ain Distribution Company (AADC) for the construction of 5 electrical substations and associated MV Cabling in the Al Ain city of Abu Dhabi.

On Jan. 21, 2008, L&T`s Heavy Engineering Division bagged a massive order worth Rs 16.95 billion to manufacture and supply 22 Hydrocracker & Atmospheric Residue Desulphurization (ARDS) Reactors for Kuwait National Petroleum Company`s prestigious `Clean Fuel Project 2020`.

On Jan. 10, 2008, construction arm of L&T bagged various new projects worth over Rs 35 billion.

On Jan. 07, 2008 the engineering and construction division of the company was awarded two major contracts worth more than Rs 13 billion, for the construction of civil works and the consolidated construction works for the northern area development project located near Barmer in Rajasthan.

Shares of the company were last trading down Rs 181.95, or 4.68%, at Rs 3,708.45. The total volume of shares traded at the BSE was 79,751. (12.37 p.m., Monday)

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