MIRA INFORM REPORT
|
Report
Date : |
16.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
LARSEN AND
TOUBRO LIMITED |
|
|
|
|
Registered
Office : |
L & T
House, Ballard Estate, Mumbai – 400 001 |
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Country
: |
India |
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|
Financials
(as on) : |
31.03.2006 |
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|
Date
of Incorporation : |
07.02.1946 |
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|
|
|
Com.
Reg. No.: |
11-4768 |
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|
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CIN
No.: [Company
Identification No.] |
L99999MH1946PLC004768 |
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|
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|
TAN
No.: [Tax
Deduction & Collection Account No.] |
MUML04455D |
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PAN
No.: [Permanent
Account No.] |
AAACL0140P |
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Legal
Form : |
A public limited liability company. The company’s shares are listed on the
Stock Exchanges. |
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|
Line
of Business : |
Manufacturers and Sellers of earthmoving machinery
including bulldozers, dumpers, scrappers, loaders, shovels, vibratory compactors
and drag lines. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
Maximum
Credit Limit : |
USD
185000000 |
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|
|
|
Status
: |
Excellent |
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|
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well-established, diversified and highly
respectable company. It is a professionally managed company having fine track
records. Fundamentals of the company are very strong. Trade relations are
fair. Financial position is healthy and comfortable. The company is
progressing well. The company's payments are always correct and as per
commitments. The company can be considered for any normal business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office / Head Office : |
L & T
House, Ballard Estate, Mumbai – 400 001, Maharashtra, India |
|
Tel.
No.: |
91-22-22618181,
22618182, 22685656 |
|
Fax
No.: |
91-22-22620223,
22617480, 22685893, 67525858 |
|
E-Mail
: |
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|
Website
: |
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Regional
Office : |
Mount
Poohamallee Road, Chennai - 600 089, Tamilnadu Tel. No.
: 91-44-2232 6348 Fax No. :
91-44-2234 2317 E-mail : itcg@giasmd01.vsnl.net.in NCL
Bandra Premises, Plot No. C/6, Bandra – Kurla Complex, P. O. Box
No. 8119, Bandra (East), Mumbai - 400 051, Maharashtra, India 2, Saki
Vihar Road, P. O. Box No. 8901, Mumbai – 400 072, Maharashtra, India 1/FL,
Laxminarayan Complex, 10/1, Palace Road, P. O. Box 122, Bangalore – 560 002,
Karnataka, India Also located at New Delhi, Lucknow, Kolkata, Vadodara,
Ahmedabad, Arakkonam Pune and Hyderabad |
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|
|
|
Overseas Office : |
·
Japan
·
Nepal
·
Sultanate
of Oman ·
Bangladesh
·
Malaysia
·
Sweden
·
Russia
·
UK ·
USA ·
UAE |
|
|
|
|
Factory : |
Faridabad, Kandla, Vadodara, Ankleshwar, Hazira, Jafrabad,
Kovayya, Nashik, Pune, Ahmednagar, Ratnagiri, Tadipatri, Bangalore, Mysore, Pondicherry,
Awarpur, Jharsuguda, Kansbahal and Haldia |
|
|
|
|
Branches
: |
·
L
& T Limited, Kanak Building, 41 Jawaharlal Nehru Road, Kolkata – 700 071,
West Bengal, India Tel. No. 91-33-2282
8406/8413/8439 Also located at Jaipur, Bhopal, Nagpur, Durgapur,
Jamshedpur, Guwahati, Bhubaneswar, Vishakhapatnam, Coimbatore, Kochi, Madurai
and Surat |
DIRECTORS
|
Name : |
Mr. A. M.
Naik |
|
Designation
: |
Chairman & Managing Director |
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|
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|
Name : |
Mr.
Jagadish Pandurang Nayak |
|
Designation
: |
Whole-time Director & President – Operations |
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|
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|
Name : |
Mr. Y. M.
Deosthalee |
|
Designation
: |
Whole-time Director & Chief Financial Officer |
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|
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|
Name : |
Mr. K.
Venkataramanan |
|
Designation
: |
Whole-time Director & President – Operations |
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|
|
|
Name : |
Mr. R. N.
Mukhija |
|
Designation
: |
Whole-time Director & Senior Vice President –
Operations |
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|
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|
Name : |
Mr. K V Rangaswami |
|
Designation
: |
Director |
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|
Name : |
Mr. S Rajgopal |
|
Designation
: |
Nominee (UTI) |
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|
Name : |
Mr. B. P.
Deshmukh |
|
Designation
: |
Nominee (GIC) |
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|
Name : |
Ms.
Kranti Sinha |
|
Designation
: |
Nominee (LIC) |
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|
Name : |
Mr. S N Talwar |
|
Designation
: |
Nominee (LIC) |
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|
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|
Name : |
Mr. M M Chitale |
|
Designation
: |
Director |
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|
Name : |
Mr. A B Saharya |
|
Designation
: |
Director |
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|
Name : |
Mr. Surinder Nath |
|
Designation
: |
Director |
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|
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|
Name : |
Mr. U Sundararajan |
|
Designation
: |
Director |
|
|
|
|
Name : |
Mr. V. K.
Magapu |
|
Designation
: |
Executive Director |
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|
|
|
Name : |
Mr. A K Shukla |
|
Designation
: |
Director |
KEY EXECUTIVES
|
Name |
Mr. H
Holck – Larsen |
|
Designation |
Chairman
Emeritus |
|
Age |
93 years |
|
Qualification |
Master’s
Degree in Chemical Engineering |
|
Date
of Joining |
30th
December, 1989 |
|
|
|
|
Name : |
N Hariharan |
|
Designation
: |
Company Secretary |
|
Name |
Mr. A M
Naik |
|
Designation |
Managing
Director & Chief Executive Officer |
|
Age |
60 years |
|
Qualification |
B E
Mechanical |
|
Experience |
37 years |
|
Date
of Joining |
15th
March, 1965 |
|
Previous
Employment |
Engineer
in Charge-Fab Shop, Nestler Boiler Private Limited |
|
Name |
Mr.
Jagadish Pandurang Nayak |
|
Designation |
Senior
Vice President |
|
Age |
58 years |
|
Qualification |
B E
Mechanical and Post Graduate Diploma in Production Engineering |
|
Experience |
37 years |
|
Date
of Joining |
1st
October, 1975 |
|
Previous
Employment |
Production
Manager in L&T Drilling Equipment Limited |
|
Other
Directorship |
Ø
LTM
Limited Ø
Narmada
Cement Company Limited Ø
L&T
Finance Limited Ø
L&T
Information Technology Limited Ø
L&T
Equipment Leasing Company Limited Ø
L&T
Cement Limited Ø
Tractor
Engineers Limited Ø
Audco
India Limited Ø
Ewac
Alloys Limited Ø
Gujarat
Leather Industries Limited Ø
L&T
–Komatsu Limited Ø
L&T
–John Deere Limited Ø
L&T
–Case Equipment Limited Ø
L&T
–Demag Plastics Machinery Private Limited |
|
|
|
|
Name |
Mr.
Yeshwant Moreshwar Deosthalee |
|
Designation |
Senior Vice
President |
|
Age |
55 years |
|
Qualification |
B.Com,
LLB, ACA |
|
Experience |
32 years |
|
Date
of Joining |
4th
February, 1974 |
|
Previous
Employment |
Junior
Officer in Crompton Greaves |
|
Other
Directorship |
Ø
Narmda
Cement Company Limited Ø
L&T
Finance Limited Ø
L&T
Information Technology Limited Ø
L&T
Infocity Limited Ø
L&T
Capital Company Limited Ø
L&T
Trade.Com Limited Ø
L&T
Cement Limited Ø
Bhilai
Power Supply Company Limited Ø
L&T
–Komatsu Limited Ø
L&T
–John Deere Limited Ø
Dhamra
Port Company Limited Ø
L&T
–Case Equipment Limited Ø
L&T
Communications Limited Ø
International
Seaports Pte Limited Ø
Larsen
& Toubro Ceylinco (Private) Limited |
|
Institutional Investors |
Mr. D V
Kapur |
|
Mutual
Funds and UTI |
Director |
|
Banks Financial
Institutions and Insurance |
73 years |
|
FII’s |
B E
Electrical |
|
Sub Total |
Ø
Reliance
Industries Limited Ø
Reliance
Power Limited Ø
Reliance
Salgaocar Power Company Limited Ø
Reliance
Utilities & Power Limited Ø
Jacobs
H&G Limited Ø
GKN Driveshafts
(India) Limited Ø
Tata
Chemicals Limited Ø
Honda
Seil Power Products Limited Ø
Zenith
Limited Ø
DLF
Power Limited Ø
DCM
Hyundai Limited Ø
Drivetech
Accessories Limited |
|
Name |
Mr. S S
Marathe |
|
Designation |
Director |
|
Age |
79 years |
|
Qualification |
M A
Economics |
|
Other
Directorship |
Ø
Sandvik
Asia Limited Ø
Automotive
Axles Limited Ø
Bajaj
Tempo Limited Ø
Bharat
Forge Limited Ø
Deepak
Fertilisers & Chemicals Limited Ø
Finolex
Industries Limited Ø
Glaxo
India Limited Ø
Indian
Organic Chemicals Limited Ø
Kinetic
Motors Limited Ø
Kirloskar
Brothers Limited Ø
Kirloskar
Electric Limited Ø
Mandovi
Pellets Limited Ø
Tata
Assets Management Company Limited Ø
P P
Holding Private Limited Ø
Accord
Solutions Private Limited Ø
GDA
Trust Management Private Limited Ø
Pan
Gulf Group Limited |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Financial
Institutions |
34696667 |
25.25 |
|
Nationalised
Insurance Companies |
8448720 |
6.15 |
|
Foreign
Institutional Investors |
26285578 |
19.13 |
|
Shares
underlying GDRs |
7141298 |
5.20 |
|
Mutual
Funds |
6631402 |
4.83 |
|
Bodies
Corporate |
3630534 |
2.64 |
|
Directors
& Relatives |
1174851 |
0.86 |
|
L&T
Employees Welfare Foundation |
18598068 |
13.54 |
|
General
Public |
30778659 |
22.40 |
|
TOTAL |
137385777 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturers
and Sellers of earthmoving machinery including bulldozers, dumpers,
scrappers, loaders, shovels, vibratory compactors and drag lines. |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Scrapper,
bulldozer, ripper and loader attachments |
Nos. |
250 |
250 |
-- |
|
Road Rollers,
hot mix plants and other road construction and bridge construction machinery |
Nos. |
150 |
150 |
-- |
|
Dairy
machinery and equipment – various items in aggregate |
Nos. |
35584 |
35584 |
-- |
|
Chemical plant
and machinery including pharmaceutical, dyestuff, distillery, brewery and
solvent extraction plants, evaporators and crystalliser plants and pollution
control equipment in aggregate |
Tones |
6067 |
6567 |
5052 |
|
Equipment
for food processing industry |
Tones |
65 |
65 |
-- |
|
Complete
cement making machinery including rotary kilns and fluxo packers in aggregate |
Nos. |
2 |
2 |
-- |
|
Sugarcane
and beet diffusion, beet preparation and beet pulp dehydration plants |
Nos. |
2 |
2 |
-- |
|
Nuclear
purpose equipment, deaerators, ultra high pressure vessels including
multiwall vessels, high pressure heat exchangers and high pressure heaters in
aggregate |
Tonnes |
5000 |
3950 |
110 |
|
Plant and
equipment and modules for nuclear power projects, heavy water projects,
nuclear and space research and allied projects including items for chemical,
oil and gas, etc., industries |
Tones |
10000 |
10000 |
10877 |
|
Complete
high speed bottling plants |
Nos. |
6 |
6 |
-- |
|
Pulp and
paper making plants |
Nos. |
2000 |
800 |
-- |
|
Suspended
particles drying plants |
Nos. |
6 |
6 |
-- |
|
Containers
for liquefied gases and chemicals |
Nos. |
Not Applicable |
1000 tones carrying capacity |
-- |
|
Steel plant
valves |
Nos. |
40 |
40 |
-- |
|
Ship
auxiliaries and components of mechanised sailing vessels |
Tones |
1000 |
1000 |
-- |
|
Rubber
Processing Machinery |
Nos. |
109 |
109 |
211 |
|
Switchgear,
all types |
Nos. |
2678500 |
3174750 |
3666597 |
|
Miscellaneous
electrical items |
Nos. |
1049100 |
1039100 |
-- |
|
Petrol
dispensing and metering pumps |
Nos. |
4800 |
4800 |
6906 |
|
Press
tools, jigs, fixtures, dies for pressure, castings, moulds for plastic
injection and bakelite |
Rs./Nos. |
22.00 millions |
29.50 millions |
47.100 Nos. |
|
Glass
bottles and jars |
Nos. in Million |
Not Applicable |
400 |
107.9 |
|
Portland
Cement |
Tones |
2.218 millions |
15.00 millions |
11.741 millions |
|
Industrial
Machinery |
Tones |
12000 |
12000 |
10585 |
|
Industrial
Electronic Control Panels |
Nos. |
2500 |
2500 |
459 |
|
Electronic
Devices |
Nos. |
30000 |
30000 |
936 |
|
Electro
surgical unit and accessories |
Nos. |
Not Applicable |
1250 |
556 |
|
Ultrasound
equipment and accessories |
Nos. |
1000 |
900 |
715 |
|
Patient
monitoring system and accessories |
Nos. |
5500 |
5500 |
4704 |
|
Relays |
Nos. |
Not Applicable |
55000 |
48583 |
|
Control
& relay panels |
Nos. |
Not Applicable |
100 |
-- |
|
Electricity
meters |
Nos. |
Not Applicable |
480000 |
412741 |
|
Transmission
line tower |
Tones |
54000 |
54000 |
65333 |
|
Steel
structural fabrication |
Tones |
18000 |
18000 |
32277 |
|
Steel
re-rolling |
Tones |
40000 |
40000 |
25584 |
|
Ready mix
concrete |
M3 |
660400 |
3128000 |
2017662 |
GENERAL INFORMATION
|
No. of
Employees : |
22,922 |
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Bankers
: |
˜
State
Bank of India, Mumbai, Maharashtra, India ˜
Bank
of India, Mumbai, Maharashtra, India ˜
Central
Bank of India, Mumbai, Maharashtra, India and several other banks. |
||||||||||||||||||||||||||||||||||||||||||||||
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Facilities : |
|
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Auditors
: |
˜
Sharp
& Tannan
Chartered Accountants |
|
|
|
|
Associates: |
˜
Ewac
Alloys Limited ˜
Audco
India Limited ˜
L&T
Niro Limited ˜
L&T
Chiyoda Limited ˜
L&T
Sargent & Lundy Limited ˜
L&T
Komatsu Limited ˜
International Seaports Pte. Limited ˜
L&T
John Deere Private Limited ˜
L&T
Ramboll Consulting Engineers Limited ˜
Larsen
& Toubro (Saudi Arabia) LLC ˜
L&T
Crossroads Private Limited ˜
L&T
Case Equipment Private Limited ˜
Sharp
Business Systems (India) Limited ˜
L&T
Infocity-Ascendas Private Limited ˜
The
Dhamra Port Company Limited ˜
Voith
Paper Technology India Limited ˜
Larsen
& Toubro (Oman) LLC (upto 25.01.2003) ˜
Desbuild
– L&T Joint Venture ˜
Larsen
& Toubro Limited – Shapoorji Pallonji & Co. Limited Joint Venture ˜
L&T
Hochtief Seabird Joint Venture ˜
HCC-L&T
Purulia Joint Venture ˜
L&T
Demag Plastics Machinery Private Limited ˜
L&T
HCC Joint Venture ˜
Bauer-L&T
Diaphragm Wall JV ˜
International
Metro Civil Contractors ˜
L&T
Joshi Technologies Inc. Joint Venture |
|
|
|
|
Subsidiaries
: |
˜
Tractor
Engineers Limited ˜
L&T
Finance Limited ˜
L&T
Capital Company Limited ˜
L&T
Trade.com Limited ˜
Larsen
& Toubro Infotech Limited ˜
Larsen
& Toubro Infotech GmbH, Germany ˜
LTM Limited ˜
L&T
Transportation Infrastructure Limited ˜
HPL
Cogeneration Limited ˜
Narmada
Cement Company Limited ˜
Narmada
Infrastructure Construction Enterprise lt ˜
L&T
Western Indai Tollbridge Limited ˜
L&T
Equipment Leasing Company Limited ˜
India
Infrastructure Developers Limited ˜
L&T
Netcom LIMITED ˜
Larsen
and Toubro Ceylinco (Private) Limited ˜
L&T
Cement Limited ˜
Dakshin
Cements Limited ˜
Larsen
& Toubro LLC, USA ˜
Larsen
& Toubro International FZE, Sharjah ˜
L&T
Holdings Limited ˜
L&T
Infocity Limited ˜
Hyderabad
International Trade Expositions Limited ˜
Andhra
Pradesh Expositions Private Limited ˜
L&T
ECC Construction (M) SDN BHD, Malaysia ˜
Bhilai
Power Supply Company Limited ˜
L&T
Power Investments Private Limited ˜
Cyberpark
Development & Construction Limited |
|
|
|
|
Membership
: |
Confederation
of Indian Industry |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
325,000,000 |
Equity
Shares |
Rs.10/- each |
Rs.3250.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
27480000 |
Equity
Shares |
Rs.10/- each |
Rs. 274.800 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
274.800 |
259.800 |
248.800 |
|
|
3]
Reserves & Surplus |
46126.900 |
33431.500 |
27501.600 |
|
NETWORTH
|
46401.700 |
33691.300 |
27750.400 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
4657.900 |
7937.200 |
10452.500 |
|
|
2]
Unsecured Loans |
9877.800 |
10653.400 |
2791.000 |
|
TOTAL
BORROWING
|
14535.700 |
18590.600 |
13243.500 |
|
|
DEFERRED
TAX LIABILITIES |
2097.900 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
63035.300 |
52281.900 |
40993.900 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
13207.300 |
10172.400 |
9901.800 |
|
Capital work-in-progress
|
2838.900 |
658.200 |
262.300 |
|
|
|
|
|
|
|
INVESTMENT
|
19195.200 |
9609.300 |
9658.800 |
|
DEFERREX TAX ASSETS
|
1325.100 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
22102.700
|
23108.400
|
18123.000 |
|
|
Sundry Debtors
|
48141.600
|
39636.000
|
33145.800 |
|
|
Cash & Bank Balances
|
5832.000
|
8280.200
|
3752.700 |
|
|
Other
Current Assets |
172.600
|
0.000
|
0.000 |
|
|
Loans & Advances
|
19116.300
|
18597.200
|
14216.800 |
Total Current Assets
|
95365.200 |
89621.800 |
69238.300 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
58962.500
|
50232.300
|
41726.600 |
|
|
Provisions
|
10153.700
|
7946.400
|
6802.800 |
Total Current Liabilities
|
69116.200 |
58178.700 |
48529.400 |
|
Net
Current Assets
|
26249.000 |
31443.100 |
20708.900 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
219.800 |
398.900 |
462.100 |
|
|
|
|
|
|
|
TOTAL
|
63035.300 |
52281.900 |
140993.900 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
151986.300 |
141015.300 |
107401.400 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
13136.500 |
12853.900 |
7681.300 |
Provision for Taxation
|
3015.100 |
3015.400 |
2353.800 |
Profit/(Loss) After Tax
|
10121.400 |
9838.500 |
5327.500 |
|
|
|
|
|
|
Export Value |
31779.900 |
26673.700 |
NA |
|
|
|
|
|
|
Import Value |
14597.600 |
14813.700 |
NA |
|
|
|
|
|
Total Expenditure
|
138849.782 |
126001.900 |
97679.200 |
Quarterly
|
PARTICULARS |
30.06.2006 (1st Quarter) |
30.09.2006 [2nd
Quarter] |
31.12.2006 [3rd
Quarter] |
|
Sales Turnover |
34769.000 |
37421.100 |
41184.200 |
|
Other Income |
474.300 |
1056.900 |
1279.300 |
|
Total Income |
35243.300 |
38478.000 |
42463.500 |
|
Total Expenditure |
32328.600 |
34978.800 |
36928.900 |
|
Operating Profit |
2914.700 |
3499.200 |
5534.600 |
|
Interest |
157.700 |
106.100 |
12.200 |
|
Gross Profit |
2757.000 |
3393.100 |
5522.400 |
|
Depreciation |
308.900 |
336.400 |
356.700 |
|
Tax |
884.200 |
1046.000 |
1743.300 |
|
Reported PAT |
1571.3000 |
2012.200 |
3439.000 |
Notes
200606 Quarter 1
Gross Sales Includes Gross Sales / Revenues from
Operations Rs 35238.30 million Other Operational Income Rs 80.00 million
Expenditure Includes (Increase)/Decrease in stock in Trade Rs 59.60 million
Consumption of Raw Material (incl. WIP) Rs 7455.00 million Sub contracting
charges Rs 7892.10 million Construction materials Rs 7874.70 million Purchase
of trading goods Rs 2257.20 million Other manufacturing / Operating Expenses Rs
1115.00 million Staff expenses Rs 2493.70 million Sales, administration &
Other expenses Rs 3181.30 million Tax Includes Provision for Current Tax
(Including for wealth Tax) Rs 848.30 million Deferred Tax Rs (7.40) million
Fringe Benefit Tax Rs 35.90 million EPS is Basic Status of Investor Complaints
for the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 22 Complaints disposed off
during the quarter 22 Complaints unresolved at the end of the quarter Nil 1.
The Company, during the quarter, has reviewed and changed the accounting
estimates / policy for recognizing employee benefits, pursuant to the mandated
adoption of Accounting Standard [AS]15 (Revised), Employee Benefits, issued by
the Institute of Chartered Accountants of India. Consequently. Staff expenses
for the current quarter are higher by Rs 157.00 million. Further, in accordance
with the transitional provisions prescribed under the aforesaid AS 15 Rs 76.90
million has been charged to the General Reserve as at April 01, 2006. 2. In
line with the revised internal reporting norms of the Company, segment
reporting has been reconstituted during the quarter. Consequently, segment
figures for the periods of the previous year have been regrouped. 3. The
Company during the quarter ended June 30, 2006 has: a. allotted 1.229 millions
shares of Rs 2 each, fully paid up, on exercise of stock options by employees,
in accordance with the Company's stock option schemes. b. allotted 0.525
million shares of Rs 2 each, fully paid up, on exercise of conversion option by
some holders of the foreign currency convertible bonds issued by the Company.
4. Figures for the previous period have been re-grouped / re-classified to
conform to the figures of the current period. 5. The results for the quarter
ended June 30, 2006 have been subjected to Limited Review by the Statutory
Auditors, reviewed by the Audit Committee and approved by the Board of
Directors at its meeting on July 21,2006.
2006-09 Quarter 2
Other Income includes Other Operational Income Rs
60.40 million Other Income Rs 1056.90 million Expenditure Includes
(Increase)/Decrease in stock in Trade Rs (214.20) million Consumption of Raw
Material (incl. WIP) Rs 8985.70 million Sub contracting charges Rs 6700.20
million Construction materials Rs 8115.70 million Purchase of trading goods Rs
2834.80 million Other manufacturing / Operating Expenses Rs 1509.50 million
Staff expenses Rs 3955.60 million Sales, administration & Other expenses Rs
3091.50 million Tax Includes Provision for Current Tax (Including for wealth
Tax) Rs 1010.10 million Deferred Tax Rs (1.50) million Fringe Benefit Tax Rs
35.90 million EPS is Basic Status of Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 15 Complaints disposed off during the
quarter 15 Complaints unresolved at the end of the quarter Nil 1. In accordance
with the transitional provisions prescribed under Accounting Standard [AS]15
(Revised) on, Employee Benefits, issued by The Institute of Chartered
Accountants of India, a sum of Rs 76.9 million has been charged to the opening
reserves as at April 01, 2006. 2. On October 03, 2006 the Company has allotted
bonus equity shares of Rs 2 each, fully paid up, in the ratio of 1:1, to all
registered shareholders as on the record date (September 29, 2006]. The
earnings per share ('EPS'] data disclosed above exclude the impact of the
aforesaid allotment of bonus shares. 3. The Company during the quarter ended
September 30, 2006 has: (i) allotted 0.781 million shares of Rs 2 each, fully
paid up, on exercise of stock options by employees in accordance with the
Company's stock option schemes. (ii) allotted 0.099 million shares of Rs 2
each, fully paid up, on exercise of conversion option by some holders of the
foreign currency convertible bonds issued by the Company. 4. Figures for the
previous period have been re-grouped / re-classified to conform to the figures
of the current period. 5. The results for the six months and quarter ended
September 30, 2006 have been subjected to Limited Review by the Statutory
Auditors, reviewed by the Audit Committee and approved by the Board of
Directors at its meeting on October 19, 2006,
200612 Quarter 3
Other Income includes Other Operational Income
Rs 37.80 million Other Income Rs 1241.50 million Expenditure Includes
(Increase)/Decrease in stock in Trade Rs (807.30) million Consumption of Raw
Material (incl. WIP) Rs 11854.10 million Sub contracting charges Rs 8066.10
million Construction materials Rs 6928.70 million Purchase of trading goods Rs
3381.80 million Other manufacturing / Operating Expenses Rs 1476.20 million
Staff expenses Rs 3028.30 million Sales, administration & Other expenses Rs
3001.00 million Tax Includes Provision for Current Tax (Including for wealth
Tax) Rs 1703.60 million Deferred Tax Rs (16.60) million Fringe Benefit Tax Rs
39.70 million EPS is Basic Status of Investor Complaints for the quarter ended
December 31, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 10 Complaints disposed off during the
quarter 10 Complaints unresolved at the end of the quarter Nil 1. The residual
business (electrical) of Datar Switchgear Limited ('Acquired entity') has been
merged with the Company with effect from April 01, 2005 (the Transfer Date).
The operating results of the acquired entity for nine months period of other
current financial year have been included in the Company's results for the
current quarter consequent upon compliance with the requirements under BIFR
Rehabilitation package on October 03, 2006 (the effective date). The results of
the acquired entity for the period from April 01, 2005 to March 31, 2006 have
been adjusted against the opening reserves. The results of the acquired entity
for these periods are not material. 2. In accordance with the transitional
provisions prescribed under Accounting Standard 15 (Revised) on, Employee
Benefits, issued by The Institute of Chartered Accountants of India, a sum of
Rs 76.90 million has been charged to the opening reserves as at April 01, 2006.
3. On October 03, 2006 the Company has allotted bonus equity shares of Rs 2
each, fully paid up, in the ratio of 1:1, to all registered shareholders as on
the record date. The earnings per share ('EPS'] data for all the period
disclosed above have been adjusted for the issue of bonus shares as per the
Accounting Standard 20 on Earning Per Share. 4. The Company during the quarter
ended December 31, 2006 has: (i) allotted 0.020 million shares of Rs 2 each,
fully paid up, on exercise of stock options by employees in accordance with the
Company's stock option schemes. (ii) allotted 0.507 million shares of Rs 2
each, fully paid up, on exercise of conversion option by some holders of the
foreign currency convertible bonds issued by the Company. 5. Figures for the
previous period have been re-grouped / re-classified to conform to the figures
of the current period. 6. The results for the nine months and quarter ended
December 31, 2006 have been subjected to Limited Review by the Statutory
Auditors, reviewed by the Audit Committee and approved by the Board of
Directors at its meeting on January 29, 2007.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.42 |
0.52 |
0.72 |
|
Long Term Debt-Equity Ratio |
0.31 |
0.35 |
0.51 |
|
Current Ratio |
1.35 |
1.35 |
1.20 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
6.90 |
6.64 |
2.44 |
|
Inventory |
6.71 |
6.48 |
5.94 |
|
Debtors |
3.39 |
3.67 |
3.11 |
|
Interest Cover Ratio |
7.85 |
7.79 |
7.10 |
|
Operating Profit Margin(%) |
9.74 |
8.33 |
9.84 |
|
Profit Before Interest And Tax Margin(%) |
9.02 |
7.67 |
9.04 |
|
Cash Profit Margin(%) |
6.48 |
5.82 |
6.19 |
|
Adjusted Net Profit Margin(%) |
5.76 |
5.16 |
5.39 |
|
Return On Capital Employed(%) |
24.16 |
22.34 |
16.77 |
|
Return On Net Worth(%) |
21.74 |
22.69 |
16.99 |
STOCK
PRICES
|
Face
Value |
Rs.
10.00/- |
|
High |
Rs.
1698.00/- |
|
Low |
Rs.
1624.00/- |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was incorporated on 7th February 1946 as
a private limited company to take over the partnership business of `Larsen
& Toubro'. It was converted into a public limited liability company in
1950.
The company was founded in 1938 by two Danish engineers,
Henning Holk Larsen and Soren Kristian Toubro, as a partnership firm, Larsen
& Toubro became a private limited company in 1946 and a public limited one
in 1950. It manufactures a wide range of engineering products like earthmoving,
industrial and chemical machinery, switchgears, valves, welding alloys and
cement machinery, L & T diversified into shipping, acquiring two bulk
carriers from Japan in 1981-82. In 1983-84, it commenced operations at its 1-mtpa
cement plant at Awarpur, Maharashtra.
The company is one of the largest engineering conglomerates
in South East Asia. It is a major player in the cement and engineering,
procurement and construction industries and is perhaps the only one in India
that has the capacity to compete with global giants.
The company has four major divisions – Engineering and
Construction (59 % of FY 2000-01 sales), Cement (28 %), Electricals and
diversified products (9 %). It also has a 100 % subsidiary – L & T
Information Technology Services (to be renamed L & T Infotech)
The company has promoted a 50:50 venture with Komatsu Asia
and Pacific, Singapore, of the Komatsu group of Japan, a global leader in
earthmoving and construction equipment. It has sold and transferred its
Bangalore-based construction equipment manufacturing division to this new joint
venture called L & T – Komatsu Limited. The company has tied up with FORE
Systems Inc. of the USA to provide state-of-the-art ATM (asynchronous transfer
mode) technology for communication networks.
In 1999-2000, the company acquired the Chowgule-promoted
Narmada Cement Company at a cost of Rs. 2430 millions. Today it is the India’s
largest cement company with a capacity of 12 million tonnes.
With the completion of the cement grinding unit of 1 million
tonne capacity at Durgapur in the second half of FY 2001-02, the company's
cement capacity was 16 million tonnes. In November, 2001 Grasim Industries,
which is the third largest player in the Indian cement industry, acquired a strategic
10% equity stake in L & T from Reliance Industries. In January, 2002 the
company has brought over the share holding of Caterpillar, USA in its 50:50
joint venture Tractor Engineers (TENGL).
Subsequently TENGL has become a wholly -owned subsidiary of the
company.
In June 2001, name of L & T Information Technology
Limited was changed to Larsen & Toubro Infotech Limited, subsequently the
equity shares of LTIL were sub divided into fully paid up equity shares of Rs.
5/- each.
During 2001-02, the Construction division has executed major
projects viz. a) Coal Handling Plant (4400 MTPA) for Paradip Port Trust b) 21
MW Power projects at Mithapur for Tata Chemicals.
Much awaited, extensively deliberated demerger of Cement
business to Ultra Tech Cemco has been effective from 1st April, 2003
and now Larsen and Toubro is purely a EPC contractor with interests in
electrical and electronics, ready mix concrete and power (through subsidiary).
The Cement division of the L & T has been demerged and
transferred to Ultra Tech effective from 1st April, 2003.
Accordingly, for every 10 shares of Rs. 10/- each held in Larsen and Toubro
(before demerger), the shareholders will get (a) 5 shares of Rs. 2 each of
demerged L and T (residual entity) and 4 shares of Rs. 10 each of Ultra Tech.
Before demerger, L and T has a paid up capital of Rs.
2487.100 millions, which has been reduced to Rs. 248.800 millions. The company
feels this is necessary as it is no longer represented by assets. Such
reduction is being effected by reducing the face value of the equity shares of
the company from Rs. 10 per equity share to Re. 1 per equity share.
Subsequently, the company will consolidate 248.800 millions equity shares of L
& T of the reduced value of Rs. 1 into 124.400 millions equity shares of
Rs. 2 each fully paid up. Simply put, for every 10 shares of Rs. 10 each of L
& T, the shareholders will get 5 shares of Rs. 2 each in the residual
entity.
L & T holds 20% stake in Ultra Tech as of 31st
March, 2004. However, as per the scheme of arragement, subject will divest 8.5%
stake in Ultra Tech to Grasim Industries. The demerger of cement division into
Ultra Tech has become effective from 14th May, 2004. The shares of
Ultras Tech will be listed in bourses within 40 days from the above effective
date. Meanwhile, Grasim has made an open offer to shareholders of Ultra Tech to
acquire 30% stake amounting to 3,73,19,587 equity shares of Rs. 10 each of
Ultra Tech for Rs. 342.60 per share.
Grasim has already deposited the entire open offer
consideration in an escrow account. The open offer opened on 7th
June, 2004 and closed on 21st June, 2004.
Some of the
initiatives to demerge are:
˜
A
Subsidiary company, L & T Cement Limited to be formed.
˜
L
& T shareholders to receive about 25 % stake in LTCL.
˜
Narmada
Cement company to be merged with LTCL.
˜
L
& T would invite a strategic financial partner in LTCL.
˜
The
strategic partner would have the same level of shareholding with L & T
through a combination of secondary purchases and infusion of capital in LTCL
over a period of time.
Generic
Names of the Principal Products / Services of Company (as per monetary terms)
are as under:
|
Item Code No. (ITC Code) |
Product Description |
|
|
|
|
N.A. |
Construction
and Project related activity |
|
252329.01 |
Portland
Cement |
|
847989.02 |
Plant and
equipment and modules for nuclear power projects, heavy water projects,
nuclear and space research and allied projects including items for chemicals,
oil and gas, etc. Industries |
Year in Retrospect
The gross sales and other income for the financial year under report were Rs.
154290.000 millions as against Rs. 139530.000 millions for the previous financial
year registering an increase of 11%. The Profit before tax and extraordinary
items (after interest and depreciation charges) was Rs. 13140.000 millions and
the Profit after tax (before extraordinary items) was Rs. 9420.000 millions for
the financial year under report as against Rs. 12860.000 millions and Rs.
9840.000 millions respectively for the previous financial year.
Dividend
The Directors
recommend payment of dividend of Rs. 22/- per equity share of Rs. 2/- each.
Equity Shares that may be allotted on exercise of options granted under the
Employee Stock Option Schemes as also on conversion of outstanding Foreign
Currency Convertible Bonds before the Book Closure for payment of dividend will
be entitled to receive full dividend.
Capital & Finance
During the year under report, the Company allotted 22,86,496 equity shares of
Rs. 2/- each upon exercise of stock options by the eligible employees under the
Employee Stock Option Schemes.
The Company also allotted 51,75,099 underlying equity shares in respect of
Global Depository Receipts issued upon conversion of US $ 128,270,000 Bonds out
of US $ 150 mn - 1.25% Foreign Currency Convertible Bonds (due 2009) issued in
November 2004.
During the year, the Company raised funds aggregating Rs. 10210.000 millions
through privately placed debentures and redeemed debentures including those
allotted earlier, aggregating Rs. 11480.000 millions.
The Company issued at par, Zero Coupon Foreign Currency Convertible Bonds
aggregating to JPY 11.57 bn (US $ 100 mn equivalent), comprising 1157 Bonds of
JPY 10,000,000 each (INR value: Rs. 4353.800 Millions) to finance ongoing
capital expenditure and acquisitions. The Bonds have a tenor of 5 years and
will be redeemed at 103.30% of the principal amount on Maturity Date. The Bonds
are convertible into Global Depository Shares, at the option of Bondholders at
an initial conversion price of Rs. 2498.45 per equity share.
The above Bonds are listed on the Singapore Exchange Securities Trading
Limited.
Management Discussion and Analysis
Review of Economy
The Indian GDP grew at 8.4% in 2005-2006, surpassing the high of 7.5% achieved
in 2004-2005. On the back of healthy monsoon, Agriculture bounced back with a
growth of 3.9% as compared to 0.7% in 2004-2005. In the last few years, both
the industry and services have acted as the twin engines propelling the growth
of the economy, contributing about 20% and 61% of the GDP respectively.
Industry achieved a growth of 7.6% (7.4 in 2004-2005) while Services grew by 10.3%
(10.2% in2004-2005). Substantial progress was witnessed in attracting private
investment in several sectors including infrastructure sectors like roads,
ports and airports.
During the year 2005-2006, the Fiscal deficit was at 4.1% of GDP on account of
containment of the revenue deficit at 2.6% of GDP. The spurts in oil and gas
prices were effectively countered with significant increase in forex inflows,
thereby not allowing the deficit to adversely impact the floating rupee.
Inflation has been maintained at 5% despite the hike in crude oil and commodity
prices. As per the latest study of FDI confidence index survey, India is
amongst the top 10 countries behind China, followed by Mexico, Poland, Brazil
and Russia, in attracting the foreign direct investment into the country.
There was a renewed activity in the Gulf and South East Asian economies. The
hardening of oil prices has had a two fold impact; one on the oil rich
economies with a boom in construction and infrastructure sectors, another on
the developing economies to bring efficiencies in the oil and gas mid stream
and down stream activities, besides pursuing oil exploration with renewed
vigour and urgency. It is heartening to note that during 2005-2006, the trade
amongst the Asian countries surpassed the amount of trade Asian countries had
with the rest of the world. This augurs well for the Indian industry in general
and the Company in particular, in the years ahead.
Company Performance
The booming Indian economy has had a distinctive and favourable impact on the
business of the Company for the year 2005-2006. Development activities in the
Company's core sectors of operation such as transportation infrastructure,
hydrocarbon upstream, power and industrial equipments & utilities have
endowed the Company with excellent opportunities. Right moves toward
capitalizing these opportunities have enabled the Company's encouraging
performance during the year under report.
The Company's businesses have bees classified into 6 Operating Divisions, vi;
(i) Engineering Construction & Contract; Division (ECCD) (ii) Engineering
& Construction Projects Division (E&C. Projects) (iii) Heavy
Engineering Division (HED) (iv) Electrical & Electronics Division (EBG) (v)
Machinery & Industrial Products Division (MIPD) and (vi) Technology
Services Division.
All the major businesses of the Company reported improved performance during
2005-2006. Most of the Subsidiary & Associate companies, operating in
varied sectors, directly or indirectly related to the parent Company's core
businesses, had performed well during the year under report. The performance
highlights of some of the key Subsidiary & Associate companies are covered
in the later part of this report.
The Company has launched Programme Lakshya, a five year strategic plan for
charting its growth path. It aims at enhancing shareholder value by achieving
profitable growth in scalable high end businesses, expanding international
operations, achieving operational excellence and through effective talent
management.
Critical initiatives of this programme include (i) achieving cost efficiencies,
(ii) thrust on engineering and IT services, (iii) risk management, (iv) supply
chain management, (v) shared services, (vi) exploring the inorganic route for
bridging competency gaps, achieving scale, etc.
All the Operating Divisions have launched implementation programmes to monitor
the Programme Lakshya initiatives.
During the year 2005-2006, the Company has divested its stake in two of its
Associate companies, namely, L&T-John Deere Private Limited and
L&T-Niro Limited. The Company also exited the Dairy & Milk Processing
equipment business forming a part of the Engineering & Construction
Projects Division and Glass container business forming part of the Machinery
& Industrial Products Division during the year under report.
These initiatives are a part of the regular review of business portfolio of the
Company, which is focused on profitable growth of its core and scalable
businesses.
The management of Larsen & Toubro Limited presents the analysis of Division
wise performance of the Company for the year 2005-2006 and its outlook for the
future. This outlook is based on assessment of the current business
environment. It may vary due to future economic and other developments, both in
India and abroad.
Outlook
On the domestic front, progressive policies impacting the Infrastructure,
Manufacturing and core sectors of the economy have opened up a large vista of
opportunities for the Division. The continuing resilience and buoyancy in the
Oil producing countries augurs well for the Division's penetration in the
Middle East. The outlook for most of the core sector businesses appear to be
positive.
IPU Sector: The booming market has seen new players entering the markets.
However the capability of providing turnkey solutions for EPC projects, timely
completion and the excellent performance of L&T supplied equipment have
provided the competitive edge to the Company's business in this sector. The
growth envisaged in Power & Port sectors, should provide attractive
opportunities to the Bulk Material Handling business.
With the successful awarding of an industrial water project through the PPP
route in the state of Andhra Pradesh, the sector now looks forward to repeat
opportunities for such projects in other states. Since water supply projects
are a point of focus for almost all State Governments due to the enormous
demand supply gap, large value orders involving Water Treatment process will be
the order of the day Investments in Steel plants by private players will
continue to be buoyant.
HC&P Sector: Major expansion plans by the refineries and petrochemical
industry from public and private sectors provide good opportunities for the
Division. Opportunities such as (i) development of total five Thermal Power
Plants with a planned investment outlay of Rs. 800000.000 Millions, (ii)
expected BOOT projects in the transmission lines and (iii) investments by the
State Electricity Boards are expected to provide the much needed fillip to the
power sector. Continuing inflow of funds to the Power Grid for establishing 765
kV and 400 kV Switchyards enhance the business prospects of HC&P sector.
Continued thrust on Hydropower development by the government for generation of
050000 MW Hydroelectric Power' will create business opportunities for the
sector. The Government's clearance for implementation of four Nuclear Power
Projects in the near future and the recent Indo-US agreement on Nuclear Energy
co-operation is expected to expedite growth of Nuclear Energy. The above
opportunities portend well for the sector as a whole in the coming years.
B&F Sector: The growth potential of the business under this sector is
expected to improve with rapid urbanization of tier-II cities, and increased
awareness about health and recreation. There is a huge scope for modernization
of airport terminal buildings and other related developments. India is gearing
up for a major boom in the manufacturing sector; for instance 7000 TPD glass
production, 0.5 million cars, 50 mtpa capacity enhancement in Cement industry,
etc. The Division is extremely optimistic about the plethora of opportunities
for this sector.
TI Sector: The renewed focus of the Government on Infrastructure will result in
more opportunities during 2006-2007 in Roads, Airports, Bridges and Ports. Six
expressways are identified to be developed through an international competitive
bidding process. Major allocations have been planned for urban infrastructure
projects, including Mumbai and Bangalore metro rail projects and other projects
in Maharashtra, Madhya Pradesh and Gujarat. On this backdrop, the sector
expects to perform well in the years ahead.
Global Engineering Solutions (GES), recently established as an arm of ECCD's
Engineering Design Research Centre, has made good forays into the international
markets of Engineering & Design consultancy, expecting to emulate the
success of Indian software companies.
Thus, with the accelerated growth in the economy, backed by the initiatives of
the various business sectors, the Division is optimistic about its growth
prospects over the next few years.
Year
2005-2006 at a Glance
v New Order Inflow
Rs.223050.000 Million (Previous Year Rs. 149420.000 Million) - Growth 49%
v Order
Backlog Rs.246460.000 Millions (Previous Year Rs. 177280.000 Millions) - Growth
39%
v Gross Sales
Rs.148840.000 Million (Previous Year Rs. 132550.000 Million) - Growth 12%
v Export
Sales Rs.26420.000 Million constituting 18% of Total Sales.
v Segment-wise
composition of revenue:
Engineering & Construction Segment 82.3%
Electrical & Electronics Segment 10.4%
Others" Segment 7.3%
v PBDIT Rs.15730.000
Millions (Previous Year Rs. 14340.000 Million) - Growth 9.7%
v PAT
Rs.10120.000 Million (Previous Year Rs.9840.000 Million) - Growth 2.8%
v
Debt Equity ratio of 0.32:1 (Previous Year 0.56:1)
It is in
trade terms with:-
˜
A S
Enterprises
˜
Dipti
corrugating Industries Private Limited
˜
Dyna
Hitech Power Systems Limited
˜
Apollo
Soyuz Electricals Private Limited
˜
Adhithiya
Gears Private Limited
˜
Afmc
Lubrication Private Limited
˜
Ambattur
Heat Treaters Private Limited
˜
Are
Vee Engineering Works
˜
Acumac
Machine Tools Private Limited
˜
Adithya
Castings Private Limited
˜
D C
Metal Corporation
˜
Chennai
Hydro-Maatics Private Limited
˜
D’Souza
Metal Cutting Private Limited
˜
Dwarkesh
Engineering Works Private Limited
˜
Excellent
Products of India
˜
Industrial
Controls & Drives (India) Private Limited
˜
J
& J Biotech and Speciality Chemical (Private) Limited
˜
Empee
Engineers (Private) Limited
˜
Tamilnadu
Heat Treatment and Fetting
˜
Sargam
Metals Private Limited
˜
Kabra
Engineers
˜
Ujwal
Plastic Industries Private Limited
˜
Victory
Timber & Plywood
˜
Venus
Technical Services
˜
Vita
Technology Private Limited
˜
Wadhwa
Brothers Engineering
˜
Yashvin
Filters
˜
Young
(India) Computers Private Limited
˜
Yojana
Udyog Private Limited
˜
Swastik
Heavy Structural Private Limited
˜
Shree
Jalaram Wood Works
˜
Setwel
Industries
˜
Union
Abrasives
˜
Toughedge
Industrial Tools Private Limited
˜
Vanjax
Sales Private Limited
Technical Tie-ups with Overseas Companies
˜
BTR
Plc, UK
˜
Caterpillar
Inc, USA
˜
Chiyoda
Corporation, Japan
˜
E
& C, Switzerland
˜
Niro
A/S, Denmark
˜
Precious
Shipping Public Company Limited, Thailand
˜
Sargent
& Lundy, USA
˜
SSA
International Inc., USA
˜
Zubair
Enterprises LLC, Sultanate of Oman
The company's fixed assets of important value include
goodwill, freehold and leasehold land, mining lease, ships, buildings, railway
sidings, plant & machinery, furniture & fixtures, vehicles, aircraft
and Jetties
AS PER WEBSITE
Founded in 1938, Larsen
& Toubro Limited (L&T) is one of Asia's largest vertically
integrated Engineering & Construction conglomerates with additional
interests in Information Technology and electrical business. A strong,
customer-focused approach and the constant quest for top-class quality have
enabled the company to attain and sustain leadership position for over seven
decades.
Serving
the core sectors and infrastructure of the economy, L&T has pioneered
spectacular achievements in Indian industry. Many of the engineering and
construction projects executed by L&T have set new benchmarks in terms of
scale, sophistication and speed. So do many buildings, ports, highways, bridges
and civil structures around the country, which are widely regarded as
landmarks.
Indian
Multinational
In
line with its strategy of aligning capabilities to meet emerging trends,
L&T recently initiated a mega-transformation process, internally to ensure
that it emerges, as a knowledge-based Indian multinational. Over the years the
company has proactively created the necessary infrastructure for its global
initiative with office locations in USA, Europe, Middle East and Japan.
The
Engineering and Construction (E&C) Division forms the biggest segment of
its parent group Larsen and Toubro's Business Portfolio.
This division is capable of carrying out turnkey projects in core sector of
Industry on EPC basis.
The
Engineering and Construction Division has integrated its strengths in process
technology, basic and detailed Engineering, modular fabrication, procurement,
project management, construction and commissioning to offer single point
responsibility under stringent delivery schedules, having offices at various
locations in India namely Powai Campus-Mumbai, Vadodara and Faridabad
Modular
Fabrication Facility (MFF) at Hazira, one of the largest of its kind in South
Asia, is capable of manufacturing several large modules simultaneously. This
has been further strengthened by the new JV company, Modular Fabrication Yard
LLC at Sultanate of Oman
The
Engineering & Construction Division made significant progress during the
year in increasing its presence in the overseas markets. The Division secured
orders from international clients located at Malaysia, USA, UK, Brazil, Saudi
Arabia, UAE, Qatar, Bangladesh, Sri Lanka, etc. The export earnings of the
Division amounted to Rs. 24600 million during the year 2005-06. The customer
profile includes leading names such as Samsung, Chevron, Bechtel, Kvaerner,
Pirelli, Siam Michelin, Goodyear, etc.
The
Electrical & Electronics Division too has increased its thrust on exports
and the share of export revenues during the year ended March 31, 2006 increased
to 11 % as compared to 8% in the previous year.
L&T
believes that progress must necessarily be achieved in harmony with the environment.
A commitment to community welfare and environmental protection constitute an
integral part of the Corporate Vision.
Press Release:
L&T fabricates
8,000-t platform for ONGC
Hazira , Nov. 4
A 1400-TONNE structure, part of the 8,000-tonne
mega process platform for Oil and Natural Gas Corporation, has already been
loaded on a floating deck on the Tapti shore of Larsen & Toubro's Hazira
facility, the finishing touches being given to it.
"This is the largest process platform that
has ever been constructed in India," says Mr V.N. Desai, Senior Deputy
General Manager of the Modular Fabrication Yard of L&T, who is part of the project
team for the platform. The entire facility will be handed over to ONGC by
January 31, 2004.
The other sections of the mega platform are also
almost ready. The 1665-tonne East deck, which will complement the 1400-tonne
west deck which has been already loaded, is also ready for transfer to the
floating deck. This will be done by means of hydraulic cranes and ramps, a
moving event indeed for the project team and the workers who had worked on the
platforms for over a year now. Both the decks will then be towed down the river
Tapti and out its mouth into the Arabian sea and taken to the ONGC site for
installation.
There are the other sections too - the
1200-tonne living quarter deck, topped by a helideck, which will accommodate 50
persons who would be working on the offshore well nearly 200 km off the coast,
the 1500-t turbo generator module which will generate 30 MW of electricity and
a 1100-tonne process gas compressor module. Then there are desalination units
as well.
All these will be installed on an 8-legged support structure - the jacket -
which sits on the seabed, with the modules installed one after the other using
a derrick barge with a lifting capacity of 2,400 tonnes. L&T has outsourced
this work to J Ray McDermott Eastern Hemisphere Limited.
One of the platform's main functions is to draw
seawater at a depth of 30 metres below sea level, filter, deoxygenate and raise
the pressure so as to be suitable for injection whose pressure will force out
the crude from Bombay High North (BHN) wells. (The project is part of ONCG's
redevelopment facility to enhance output of oil and gas from Bombay High.) The
water will be transported to the BHN platform through a pipeline over a bridge
which is also constructed by L&T. In fact, the entire platform will be
connected to the existing BHN platform in mid-sea.
The extracted natural gas received from the BHN
platform will be received by the newly installed deck and compressed and sent
back to BHN for dehydration and later, transportation to the onshore terminal.
Almost 3,000 workers each working 12 hours a day for 30 days a month have been
employed on the project, says Mr. Desai. The size of the project has called for
varying labour requirements, a lot of which has been outsourced to certified
labour contractors, he says. ONGC had awarded the contract to Engineers India
Limited as Rs 8210.000 Million which in turn subcontracted the platform
construction and commissioning to L&T at Rs 6060.000 millions.
Construction boom lifts
L&T net 68% to Rs 71
Buoyed by robust performance from its
engineering and construction business, Larsen & Toubro, the diversified
engineering and cement major, has reported a 68% rise in net profit for the
second quarter ended September 30, '03 to Rs 710.000 Millions, up from Rs 422.000
Millions during the corresponding period last year.
Net sales during the three-month period surged
to Rs 24978.000 Millions up from Rs 19181.000 Millions, while other income more
than doubled to Rs 1246.000 Millions during the period. Profit before tax shot
up from Rs 453.000 Millions to Rs 906.000 Millions.
For the first half of the fiscal, L&T
clocked a 73% rise in net profit to Rs 1503.000 millions up from Rs 868.000
Millions in the same period last year. Net sales rose from Rs 3864 millions to
Rs 46336.000 millions, while other income shot up from Rs 952.000 Millions to
Rs 1961.000 Millions during the period. "Other income has shown a steady
rise during the last quarter, mainly due to receipts from integrated joint
ventures, exchange gains and treasury operations," L & T's CFO, YM
Deostalee, said.
For L&T, the E&C segment, which reported
a 44% growth in revenues during the three-month period, has been the main
driver. Although operating margins were lower, gross revenues from the segment
jumped to Rs 17260.000 millions. Domestic order booking in this business surged
by 49% to Rs 2131 Millions, while export orders more than doubled to Rs 1,082
Millions during the period. The total order backlog position has risen 32% to
Rs 15697 Millions.
The L&T scrip shot up 3.5% to close at Rs
406.8 on the Bombay Stock Exchange, ahead of the announcement of quarterly
results. The cement business, which is in the process of being hived off with
the Aditya Birla group in the driver's seat, has reported a modest 5% rise in
revenues during the last quarter to Rs 629 Millions. With average realization
down by 3.8%, the division's operating margin fell from 12.7% to 10.9% during
the period.
On the contrary, the company's electrical and
electronics business shored up revenues by 26% to Rs 254 Millions during the
quarter, driven by a pick-up in sales of switchgear standard products,
switchboards and petrol dispensing pumps. However, operating margins declined
from 14.5% to 11.4% following wage settlement at the Powai works.
"The E&C business maintained the growth
momentum in order booking and revenues for the quarter. While domestic order
booking reflects the leadership position of the company, the export orders
booked increasingly underscore the company's ability to secure orders against
stiff international competition," L&T said.
L&T-Demag's New
Manufacturing Facility In Chennai
Chennai, October 1, 2005: The new manufacturing facility of plastics machinery major
L&T-Demag Plastics Machinery Limited, located at Chembarambakkam in
Chennai, will be inaugurated jointly by Mr. A. M. Naik, Chairman & Managing
Director of Larsen & Toubro Limited (L&T), and Mr. Pepyn René Dinandt,
Chairman of Mannesmann Plastics Machinery Group, on
October 2, 2005
Established
in 2001, L&T-Demag is a 50:50 joint venture of L&T and Demag Ergotech
GmbH (a part of Mannesmann Plastics Machinery Group), Germany. The company
earlier had its manufacturing facilities at Manapakkam in Chennai.
L&T-Demag is a leading manufacturer of plastics injection moulding machines
with the latest technology for domestic and export markets.
The
new factory was set up at an investment of around Rs. 25 Millions. It is equipped with advanced technology
for design, manufacture and testing of plastics injection moulding machines.
Its 600 machines per year capacity will be soon expanded to 1000 machines in
the near future. A significant portion of the expected revenue of around Rs.
300 Millions will be earned from exports.
&T Group Company
Bags Rs. 165 Millions
Order From Oman
Mumbai, September 26, 2005: Larsen & Toubro Electromech LLC (LTEM), Oman, an
associate company of L&T, has secured a contract from Petroleum Development
Oman LLC (PDO), Oman. This contract is for revamping and upgradation of the
transmission lines and substations in its existing oil fields in Central Oman
as part of a major infrastructure development undertaken by PDO.
The
order is valued at Rs. 165 Millions (US $37.15
million) and has been bagged against stiff competition from local and
international players. The scope of work involves construction of 293 km of 132
kV overhead transmission lines interconnecting various existing substations,
construction of new transmission lines and additional substations in the oil
fields of interior Oman to expand the existing electrical network. The work is
scheduled to be completed by February 2007.
LTEM,
formerly known as Zubair Kilpatrik LLC, is a recent acquisition of L&T as
part of its efforts to accelerate business in the Middle East. The Company was
a unit of Zubair Corporation, L&T's JV partners in Larsen & Toubro
(Oman) LLC (LTO), which has been operating successfully for over a decade in
Oman.
LTEM,
where L&T has a shareholding of 65%, is operating with four key Business
Units, viz., MEP Services, Electrical and Instrumentation for Oil and Gas,
Engineering and Maintenance Contracts for Electrical and Instrumentation, and
Facilities Management. It will also complement and supplement LTO in projects
involving facilities management and building utility works.
L&T Wins Rs.
4300.000 Million Orders
For Export Of Process Plant Equipment
Mumbai, September 21, 2005: Continuing its thrust on high-tech
engineering exports, Larsen & Toubro Limited has recently bagged a slew of
orders valued over Rs. 430 Millions for plant
and equipment to countries ranging from France to Australia. The contracts for
critical equipment such as ammonia plants, petrochemical plants, Liquefied
Natural Gas plant and gas development projects have been secured from leading
EPC contractors like Kellogg Brown & Root, Bechtel, Foster Wheeler and
Mitsubishi Heavy Industries based in USA, UK and Japan.
L&T
will engineer, fabricate and supply stainless steel heat exchangers and
pressure vessels for an LNG plant in Australia under a contract from Foster Wheeler,
UK. For the Air Liquide H2 Plant in France, L&T will supply a waste heat
boiler package. Critical equipment for petrochemical plant - Ethylene Oxide
reactors - will be supplied to China as well as filter vessels for downstream
gasifiers. For a gas-to-liquid plant in Nigeria, L&T will supply waste heat
boiler packages and auto thermal reformers. L&T has also received critical
equipment orders for a petrochemical complex in Malaysia.
In
an export breakthrough to Egypt, L&T will supply critical equipment for an
Ammonia Plant, including the ammonia converter, unitized chiller and the
secondary reformer. This order was secured from the reputed process consultants
Kellogg Brown & Root, USA.
The
Gulf continues to be a major market for L & T's engineering and
construction expertise. L&T won orders for Heat Exchangers in Stainless
Steel and Incoloy through Bechtel, UK, to the UAE. The Company also secured a
repeat order for supply of Catofin Reactors and a Product Splitter to a
Petrochemical Plant in Saudi Arabia. For Oman, L&T will supply Urea
Reactors and a Waste Heat Boiler package.
Mr.
M.V. Kotwal, Member of the Board and Senior Vice President in charge of Heavy
Engineering Division, said "the orders from international EPC contractors
affirmed L&T's status as a significant global player in the fabricated
process plant equipment market. L&T will continue to strengthen its
engineering capabilities with a view to maintaining its competitive edge in the
international market, while simultaneously enhancing its quality and
manufacturing technologies."
L&T Consortium To
Restore
Bombay High Output
Mumbai, September 19, 2005: Acting swiftly to restore the output lost due to the
recent fire at Bombay High North (BHN) Platform, the Oil & Natural Gas
Corporation (ONGC) has entrusted a fast-track job of installation of
diversionary pipelines and associated platform modifications to a consortium
led by Larsen & Toubro Limited (L&T) with Global Industries Offshore
LLC, USA.
L&T
will engineer, supply and commission offshore facilities worth around Rs. 325 Millions, in addition to the main order of Rs.930 Millions for pipeline replacement including platform
modifications received earlier this year. The additional scope involves 12 new submarine
pipelines and 24 platforms to be modified, with ambitious completion target of
pre-monsoon 2006.
While
the loss of BHN platform had reduced output by about 0.120 Millions barrels of oil and about 4.4 million cubic
metres of gas a day, ONGC plans to recover a major part of this by diverting
the production through alternative routes. The installation of these additional
pipelines and platform modifications by the L&T Consortium will help to
achieve this in the shortest possible time.
Mr.
K. Venkataramanan, President (Engineering & Construction Projects) and
Member of the Board, L&T, said, "this repeat order is a demonstration
of L&T's heightened response to client needs to meet emergency
requirements, using their well established global project delivery
network".
L&T
and SapuraCrest Petroleum In USD100 Million Joint Venture
Mumbai, June 8, 2006: Leading
regional offshore oil and gas services providers Larsen & Toubro Limited
(L&T) and SapuraCrest Petroleum Berhad (SapuraCrest) today announced the formation
of a joint venture to build, own and operate a derrick cum pipelaying barge
valued at USD100 million.
The 270-person vessel, to be completed in the fourth
quarter of 2008, will allow the companies to better address the growing global
demand for oil and gas engineering, procurement, installation, construction and
services. The 130-metre conventional vessel is capable of lifting heavy loads
of up to 1600 tones revolving, and 2400 tones in fixed mode. It will provide
offshore installation services including sub-sea pipelaying, platform
installation opportunities across India, the Middle East, South East Asia,
Australia and the Sakhalin region.
“Quality and delivery in their work has always been
SapuraCrest's key focus in ensuring that they continually grow their
shareholder's value and enhance their competitive advantage while delivering
their primary focus – customer satisfaction,” said Datuk Shahril Shamsuddin,
Executive Vice-Chairman, SapuraCrest Petroleum Berhad. “This joint venture is
the latest in a line of similarly strategic efforts that they have undertaken
over the last two years to ensure that they possess the right technology,
infrastructure, reach and human capital to address the needs of their clients
from India to Australia . L&T is a leader in its field and this joint
venture will be mutually beneficial to both companies.”
L&T is a technology-driven engineering and
construction organisation, and one of the largest companies in India 's private
sector. It has additional interests in manufacturing, services and Information
Technology along with its interests in the oil and gas industry where it is
already acknowledged as a leader in fabrication and engineering, construction
services including turnkey projects.
“Today's partnership further strengthens their ability
to meet the needs of their customers in EPC projects and services for the oil
and gas industry. SapuraCrest is an acknowledged regional leader in its field
and their partnership strengthens both their companies while allowing their
customers greater satisfaction and their shareholders greater returns,” said
Mr. A. M. Naik, Chairman and Managing Director, L&T. “To L & T's
existing capabilities of EPC, this new company will add a vital new dimension –
the power of I – Installation,” he added.
SapuraCrest will own 40 per cent of the yet to be
named joint venture company with 60% being held by L&T.
L&T
Declares 1:1 Bonus
Mumbai, June 7, 2006: L&T has
declared a 1:1 bonus issue to its existing shareholders. The last issue of
bonus shares in the ratio of 3:5 was declared in 1986.
The present 1:1 Bonus Issue, i.e., one additional
equity share for every one existing equity share held by the members, being
issued by capitalising a part of the reserves, is being declared in deference
to a longstanding shareholder expectation. It will increase L&T's capital
base to a level that will better reflect its current scale of operations. The
issue will add depth and eventually create a larger market float in terms of
the number of L&T shares, and will thus increase liquidity and turnover of
L&T shares on the Stock Market.
The bonus issue is subject to the approval of the
Shareholders in the Annual General Meeting.
L&T's first issue of bonus shares was in 1973,
when one bonus share was issued for every three shares. Subsequently, bonus
issues were made in 1977 (1:2), 1982 (3:5) and 1986 (3:5).
The presence of the company in almost all the core
sectors of the economy has made investment in the L&T stock a surrogate
investment in the growing infrastructure sector in India .
It also stands to gain substantially from the capex
plans of companies setting up capacities to meet growing demand in sectors such
as petroleum exploration and refining, steel, cement, power, petrochemicals,
etc. It is also playing an increasing role in supply of equipment to the
defense and aerospace sectors.
L &T
and Toyo Consortium Wins IOCL Naphtha Cracker Contract
Mumbai, May 30, 2006: The
consortium of Larsen & Toubro Limited ( L&T) – India's leading
engineering and construction organization – and Toyo Engineering Corporation
(Toyo), Japan, has won a large scale turnkey contract valued over Rs. 2600
crore from Indian Oil Corporation Limited (IOCL). This contract is for project
management, engineering, procurement and construction of naphtha cracker and
associated units at IOCL's Panipat petrochemical complex in Haryana.
Toyo, the leader of the consortium, would undertake
work for the cracker plant section on EPC basis and overall project management,
while L&T would undertake work for the cracker heaters and associated
units, namely C4 hydrogenation, pyrolysis gasoline hydrogenation, and benzene
extraction units, also on EPC basis. The share of L&T's Petrochemical
Business Unit in the contract is Rs. 9000.000 Millions.
Once operational, this naphtha cracker would be one of
the largest and world-scale capacity plants in India . IOCL would process
naphtha from its Panipat, Mathura and Gujarat refineries to produce ethylene,
propylene and benzene at this naphtha cracker.
The technology for the cracker is licensed by IOCL
from ABB Lummus of USA.
L&T:
Performance for the year ended March 31, 2006
- PAT for the year up at Rs.
1012 crore
- 40% increase in PAT for the
quarter ended March 31, 2006
- Group profits for the year up
by 25%
- Dividend declared at Rs. 22.00
per equity share
Mumbai, May
25, 2006: Larsen & Toubro Limited (L&T) reported a 12%
increase in Gross Revenues from operations of Rs. 14884 crore for the financial
year ended March 31, 2006 as against Rs. 132550.000 Million for the previous
year. The share of revenues from international operations constituted 18% of
the total gross revenues.
Inclusive
of extraordinary items and gains from divestments, Profit after Tax
["PAT"] for the quarter and year ended March 31,2006 has increased to
Rs. 4670.000 Million and Rs. 10120.000 Million respectively.
PAT,
excluding extraordinary items and gains from divestments at Rs. 8630.000
Million for the year ended March 31, 2006 increased by 37% over the previous
year. Similarly, the PAT for the quarter ended March 31, 2006, excluding
extraordinary items and gains from divestments has increased by 37 % over the
corresponding quarter of the previous year.
The
provision for current tax is higher at Rs. 3650.000 Million as compared to the
previous year's provision of Rs. 3210.000 Million, the increase attributed to
increase in share of taxable earnings from business operations.
The Board
of Directors has recommended a dividend of Rs. 22.00 per equity share.
Engineering & Construction (E&C) Segment
For the year ended March 31, 2006, E&C Segment recorded a substantial
growth of 51% in order booking at Rs. 196090.000 Million. International orders
at Rs. 37860.000 Million constituted 19% of the total value of orders.
A major
share of orders booked relate to the hydrocarbon and infrastructure sectors.
The significant increase in order booking reflects the company's superior
execution skills and resource mobilizing capability to successfully complete
orders of large value and technical complexities.
The details
of the major orders secured during the year ended March 31, 2006 are given in
Annexure I
below.
The segment
recorded revenues of Rs. 125700.000 Million during the year ended March 31,
2006, representing an increase of 10% over previous year. Export sales for the
year at Rs. 24600.000 Million, constituted 20% of the total segment revenue.
The segment result ["Segment PBIT"] for the year ended March 31,2006
at Rs. 9490.000 Million posted an impressive increase of around 24% over the
previous year.
The order
backlog as at March 31, 2006 is healthy at Rs. 241690.000 Million. Capacity
augmentation by way of expansion of the heavy engineering fabrication facility at
Hazira and proposed new facilities at Coimbatore and Middle East are some of
the key initiatives being taken up to address the growth prospects.
Electrical
& Electronics Segment
The segment revenues for the year ended March 31,2006 at Rs. 15820.000 Million
showed a 30% growth over the previous year, reflecting the underlying buoyancy
in the various businesses and re-affirming the segment's dominant status as a
market leader in many of its product ranges in the country. The share of export
revenues during the year ended March 31, 2006 increased to 11 % as compared to
8% in the previous year. The Segment PBIT for the year ended March 31, 2006 at
Rs. 232 crore, posted a smart growth of 60% over the previous year.
Several
internal initiatives like procurement optimization, lean manufacturing,
contemporary product range etc., and supported by a healthy market demand have
had a visible and favorable impact on the performance of the segment. The
segment is augmenting capacity at Ahmednagar and Coimbatore for meeting the
growing domestic demand and is also setting up manufacturing facilities in
China & Saudi Arabia to enlarge its presence overseas.
Other
Diversified Businesses
Total revenues from the Company's other businesses for the year ended March 31,
2006 was Rs. 1111 crore, posting a healthy increase of 33% over the previous
year. Large investments in the domestic infrastructure and construction sectors
have benefited the businesses with higher sales growth witnessed in ready mix
concrete, construction equipment and welding systems/products.
Consolidated Financials
The
consolidated Gross Revenues for the year ended March 31, 2006 of the Group
amounted to Rs. 166660.000 Million, registering a growth of 14% over the
previous year. The net profit accruing to the Group, excluding extraordinary
items and gains from divestitures at Rs. 10510.000 Million, posted an
impressive growth of 51% over the previous year comparative of Rs. 6960.000
Million.
Most of the
entities comprising the Group have reported good performances, both in terms of
revenue growth and profitability, leading to an improved consolidated financial
position for 2005-2006.
Outlook
Sound economic fundamentals and capacity creation prospects across all core
sectors are positive factors facilitating the Company's growth potential in the
near term. The Company's ability to optimize its resources and utilize the
conducive business environment would be a key determinant to its growth and
profitability.
Given the substantial order backlog, the Company expects to sustain its good
performance and meet investor expectations in the medium term.
Annexure I
Major Orders Secured During the
Year Ended March 31, 2006
(April 05-March 06)
|
Domestic |
Rs.
millions |
|
Booster compressor platform and modification of existing
platforms in the Bassein Gas Field, north west of Mumbai for Oil and Natural
Gas Corporation Limited |
13000 |
|
Modification of existing facilities, testing,
pre-commissioning, and commissioning of entire facilities (wherever
applicable) for Mumbai High North and Bassein Field for Oil and Natural Gas
Corporation Limited |
10000 |
|
Engineering, procurement, onshore fabrication and transportation
of the critical booster and high pressure compression modules approximately
80 km west, north west of Mumbai for ONGC (Vasai East Development Project) in
consortium with Samsung Heavy Industries Limited., Korea |
7760 |
|
Construction of Blast Furnace "H" of 2.5 MTPA
capacity and electrification works at Jamshedpur, Jharkhand for Tata Steel
Limited |
7140 |
|
Construction of buildings, utilities and electrification,
airside and landside work of Hyderabad Airport for Hyderabad International
Airports Limited |
4950 |
|
Construction of Krishnagiri - Thoppur road in Tamil Nadu
for L&T Krishnagiri Thopur Toll Road Private Limited |
4500 |
|
Execution of Parbati hydro electric project stage III, on the
river Sainj, Himachal Pradesh, in consortium with Patel Engineering Limited |
4280 |
|
Development of port facilities at Gangavaram : breakwater
(package I) and marine-onshore civil works (package 3) for Gangavaram Port
Limited |
4080 |
|
Overseas |
Rs.
millions |
|
Engineering, procurement and commissioning of Vaccum
Distillation Unit (VDU) , off-sites and utilities for Petronas Melaka Group 3
(9MG3) lube base oil plant, Malaysia for Petronas, Malaysia |
5930 |
|
Engineering, procurement, construction and commissioning
of facilities for New Depot project at Safat, Kuwait for Kuwait Aviation Fuel
Company |
5800 |
|
Manufacture and supply of Column, Regenerator, Reactor and
HP Heat Exchangers for Reliance Industries Limited (Special Economic Zone -
Jamnagar) |
3840 |
|
Construction of residential buildings at Mogul Gardens in
Dubai for Nakheel, UAE |
3280 |
Larsen
& Toubro Limited
Performance
for the quarter ended 30.09.2006
PAT for
the quarter, up by 41%
Mumbai, 19.10.2006: Larsen & Toubro Limited (L&T)
reported Gross Sales from operations at Rs 38040.000 Million for the quarter
ended 30.09.2006 as against Rs. 33820.000 Million for the corresponding quarter
of the previous year. The share of revenues from international operations
constituted 19% of the gross revenues reported for the quarter. The Company
reported a 41 % growth in Profit after Tax [“PAT”] at Rs. 2010.000 Million for
the quarter ended 30.09.2006 as compared to the PAT of Rs. 1430.000 Million for
the corresponding quarter of the previous year. PAT for the current quarter at
Rs. 1830.000 Million, excluding extra ordinary and other non-recurring items
shows an impressive growth of 53%, when compared to the similar PAT of Rs.
1200.000 Million, recorded during the corresponding quarter of the previous
year.
Engineering &
Construction [“E&C”] Segment
The segment recorded a 15% growth in order booking at
Rs. 46310.000 Million during the current quarter, when compared to the same for
the corresponding quarter of the previous year. The cumulative order booking
during the year till date at Rs. 109550.000 Million, however, shows a healthy
growth of 59% over the same period of the previous year and reflects the
Company’s superior contracting and execution strengths across all industry
segments, most notable being in the infrastructure, hydrocarbon and power
sectors. Segment revenues at Rs. 27490.000 Million for the current quarter
posted an increase of 9%, when compared to revenues for the corresponding
quarter of the previous year. Export sales for the current quarter constituted
20% of the total segment revenue.
Segment profits [“PBIT”] for the current quarter at Rs. 2150.000
Million showed an improvement of 54% over the corresponding quarter of the
previous year, mainly due to better selection of jobs, close monitoring and
control of contract execution costs and a more uniform spread-out of jobs
crossing the threshold levels for margin recognition. The order backlog as at
30.09.2006 is healthy at Rs. 292700.000 Million.
Electrical & Electronics Segment
The segment recorded a 23% growth in revenue at Rs. 4670.000
Million for the current quarter, with higher sales seen in almost all product
categories. Sustained productivity improvement initiatives coupled with higher
volumes also resulted in a 32% growth in segment profits at Rs 740.000 Million,
accrued during the quarter under review.
Machinery & Industrial
Products Segment
Segment revenues for the current quarter at Rs. 4350.000
Million shows an impressive growth of 24% when compared to the corresponding
quarter of the previous year. The increase in revenues was witnessed across the
entire business portfolio comprising both, manufactured and traded products.
Increased volumes, higher price differentials and improved manufacturing efficiency contributed to a
49% increase in segment profit at Rs. 630.000 Million during the quarter.
Un-audited Group Financials for the six months ended
September 30,2006
The total income of the Group for the six months ended
30.09.2006 amounted to Rs. 89380.000 Million, registering a growth of 20% over
the corresponding period of the previous year. The net profit accruing to the
Group during the six months period ended 30.09.2006 stood at Rs. 9250.000
Million which includes net gain of Rs. 3260.000 Million on dilution /
divestments of stakes in group companies. The net profit for the current period
is higher by 83%, when compared to Rs. 5050.000 Million, being the profit for
the corresponding period of the previous year, which included Rs. 1880.000
Millions, being the profit on divestitures. Most of the entities comprising the
Group have reported good performances, both in terms of revenue growth and
profitability.
Outlook
The prevailing conducive
business climate across all sectors in the domestic market and large investment
allocations proposed in the hydrocarbons sector in the Gulf region present an
encouraging array of opportunities for the various business segments of the
Company. Given the comfortable order backlog position, the Company envisages a
higher sales growth in the second half of the current fiscal as well as in the
medium term.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 44.09 |
|
UK Pound |
1 |
Rs. 86.59 |
|
Euro |
1 |
Rs. 57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
10 |
|
PAID-UP
CAPITAL |
1~10 |
10 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
10 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
10 |
|
--CREDIT
LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
86 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores obtained
from each of the major sections of this report. The assessed factors and their
relative weights (as indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound
financial base with the strongest capability for timely payment of interest
and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working
capital. No caution needed for credit transaction. It has above average
(strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base
are regarded healthy. General unfavourable factors will not cause fatal
effect. Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable
factors carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment
of interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists.
Caution needed to be exercised |
Credit not recommended |