ANALYSIS ON LARSEN & TOUBRO

PRESENTED TO:

PRESENTED BY:

• Larsen & Toubro Limited (L&T) is a technology, engineering,

construction, finance and manufacturing company.

• It is one of the largest and most respected companies in India's

private sector.

• The company was founded in Mumbai in 1938 by two Danish

engineers, Henning Holck-Larsen and Soren Kristian Toubro.

• Certificate of commendation from Confederation of Indian

Industry, New Delhi for excellence in Human Resources

Development for the year 1986.

COMPANY PROFILE

• The Engineering Construction and Contracts Division of

L&T is among the World’s Top Contractors and ranks 35th

among top global contractors and 60th among international

contractors.

• Currently it have 35,000 employee.

• At present it’s revenue US$ 8.50 billion and net income is

US$ 0.58 billion.

• On 1st April 2010 share price is Rs. 1,655.70.

• It’s turnover is exceeding Rs.13270 crores.

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Attribute Value Date

PE ratio 27.75 01/04/10

EPS (Rs) 59.44 Mar, 09

Sales (Rs crore) 8,190.09 Dec, 09

Face Value (Rs) 2

Net profit margin (%) 10.06 Mar, 09

Last bonus 1:1 29/05/08

Last dividend (%) 525 28/05/09

Return on average equity 27.99 Mar, 09

REPORT CARD

AUDITORS REPORT

•conduct audit in accordance with the Standards on Auditing issued by the

Institute of Chartered Accountants of India.

•procedures to obtain audit evidence about the amounts and disclosures

in the financial statements.

•In making those risk assessments, the auditor considers internal control

relevant to the Companies preparation and fair presentation of the

financial statements in order to design audit procedures that are

appropriate in the circumstances.

•An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of the accounting estimates made by

management, as well as evaluating the overall presentation of the financial

statements.

PROFIT AND LOSS A/C

BALANCE SHEET

RATIOS

ASSETS INCREASE

L&T Finance Holdings, the financial services arm of L&T, on 23rdjuly 2013

reported a 20 per cent rise in its consolidated net profit at Rs 144.9 crore in

the June quarter on the back of improvement in margins, reduction in losses

in the investment management business coupled with lesser tax outgo.

Total assets of L&T for the year 2013 increased from 35118.79 for the

year 2012 crore to 37976.93 crore.

i.E growth of 7.52% is there in an assets.

SALES INCREASE

Larsen & Toubro expects sales to rise 15-17 percent for the fiscal year to March

2014, Executive Chairman AM Naik said. Larsen, India's biggest engineering

company, expects order inflows to be up about 20 percent this fiscal year, Naik

said at a news conference. The company reported a worse-than-expected 6.9

percent fall in quarterly profit. Speaking at the result press conference, CFO R

Shankar Raman says the company did not account for Rs 17,000 crore of slow

moving orders. “The environment remains fairly challenging,” he said. Raman

said the international order inflow constituted about 17 percent of the total

inflow in FY13. The total FY13 order inflow is up 25 percent (year-on-year) at

Rs 88,000 crore. “About 50 percent of the order book came from the

infrastructure sector,” he said.

PROFIT INCREASE

India’s biggest engineering and construction company Larsen and Toubro Ltd

(L&T) posted a 15.74% increase in net profit for the quarter ended 30 June, as

it benefited from strong order inflows and a doubling of so-called other

income, including treasury investments.

Net profit rose to Rs 863.65 crore in the quarter from Rs 746.15 crore in the

year-ago period, the company said on Monday. Consolidated revenue rose

28.80% to Rs 12,561.19 crore from Rs 9,751.80 crore.

Net sales were up 26% to Rs 11,955.35 crore from Rs 9,482.11 crore.

L&T’s profit beat the Rs 813 crore median of 19 analysts’ estimates compiled

by Bloomberg.

FUTURE PLANS

•Establish a global standards forum for bench marking global projects.

•Create a repository of project management cases for the benefit of future

learning.

•Create a core group focused on project management research.

•Create an innovation hub in project management

•L&T plans Rs 5k-cr housing project on Powai campus

•Larsen and Toubro, Future Group to merge general insurance business

•Larsen & Toubro (L&T) is planning to acquire overseas process engineering

company and set up a design engineering centre in Dubai to help grow revenues

from international engineering and construction (E&C) business.

•The Company has achieved enhanced business performance during the year under

review, in comparison to the year ended March 31, 2012, in spite of the challenging

economic environment and slowdown in several sectors. Gross portfolio assets

(including operating lease*) recorded 11.50% growth from 1,287,200 Lakhs as at

March 2012, to 1,435,200 Lakhs as at March 2013.

•The amount of operating lease included in 2012 is 22,910 Lakhs and 22,127 Lakhs in

2013.

•Income from operations has grown from 176,171 Lakhs in the year ended March 31,

2012 to 2,06,054 Lakhs in the year under review, an increase of 17%. Total income has

also grown 17% since 1,78,346 Lakhs to 2,07,940 Lakhs in the same period.

• During the Financial Year 2013, your Company had undertaken several initiatives

with an objective to enhance customer reach, improve operations Efficiencies, reduce

operating cost and build up a leadership pool at various levels.

•This project has led to a re-alignment of the business model, with emphasis on a multi

product, branch based structure in place of the product based verticals earlier.

PERFORMANCE OF THE COMPANY