MIRA
INFORM REPORT
|
Report Date : |
03.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
LARSEN AND TOUBRO LIMITED |
|
|
|
|
Registered Office : |
L and T House, Ballard
Estate, Mumbai – 400 001, Maharashtra, India |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
07.02.1946 |
|
|
|
|
Com. Reg. No.: |
11-4768 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L99999MH1946PLC004768 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04455D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACL0140P |
|
|
|
|
Legal Form : |
A public limited
liability company. The company’s shares
are listed on the Stock Exchanges. |
|
|
|
|
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 285846500 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well-established,
diversified and highly respectable company. It is a professionally managed
company having fine track. 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 and T House,
Ballard Estate, Mumbai – 400 001, Maharashtra, India |
|
Tel. No.: |
91-22-22618181,
22618182, 22685656, 67525656 |
|
Fax No.: |
91-22-22620223,
22617480, 22685893, 67525858, 67525893 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1: |
C Block, Gate No. 1, L and T Powai Campus, Saki Vihar Road, Powai,
Mumbai – 400072, Maharashtra, India |
|
Tel. No.: |
91-22-67052589 |
|
|
|
|
Corporate Office 2: |
Kiadb Industrial Area, Hebbal Hootagalli, Mysore – 570018, Andhra
Pradesh, India |
|
Tel No.: |
91-821-2405331 |
|
|
|
|
Regional Office/ Headquarter/ Holck-Larsen
and EDRC Centre : |
Mount Poohamallee
Road, Manapakkam, P. B. No. 979, Chennai - 600 089, Tamilnadu, India Tel. No. :
91-44-2232 6348 Fax No. :
91-44-2234 2317 E-mail : itcg@giasmd01.vsnl.net.in |
|
|
|
|
EDRC Centre : |
Kanak Building,
41, Jawaharlal Nehru Road, Kolkata 700 071, West Bengal, India Tel. No.:
91-33-22882601 Fax No.:
91-33-22881225 Email : indranil_r@lntecc.com
|
|
Division : |
ECC Division,
Mial Project Office – North Block II, 6th Floor, Gate No. 1, Powai
– 400072, Maharashtra, India |
|
|
|
|
Regional
Offices : |
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, Chennai, Tamil Nadu, India |
|
|
|
|
Overseas Offices : |
v Japan v Nepal v Sultanate of Oman v Bangladesh v Malaysia v Sweden v Russia v UK v USA v
Dubai v
Abu Dhabi v
Sharjah v
Saudi Arabia
v
Bahrain v
Qatar v
Oman v
Kuwait v
Kenya v
Bhutan v
West Indies v
Jordan v
Kazakhstan v
Sri
Lanka |
|
|
|
|
Factory : |
TLT Works, Plot No.
158-B, Sector III, Pithampur, Dhar District, Madhya Pradesh 454 774, India Tel. No.:
91-7292-256317/ 256431 Fax No.:
91-7292-256316 Email : sg-pith@lntecc.com TLT Works, Mailam
Road, Sedarapet, Pondicherry 605 111, India Tel. No.:
91-413-2672500 Fax No.:
91-413-2677727 Email : asa@lntecc.com 167, Neervalur
Village, Kancheepuram 631 502, India Tel. No.:
91-4112-27248383, 93 & 94 Fax No.:
91-4112-27248383 & 290 Email : kasokkumar@lntecc.com Also located at : v
Faridabad, v
Kandla v
Vadodara v
Ankleshwar v
Hazira v
Jafrabad v
Kovayya v
Nashik v
Pune v
Ahmednagar v
Ratnagiri v
Tadipatri v
Bangalore v
Mysore v
Awarpur v
Jharsuguda v
Kansbahal v Ranoli (Baroda) v
Visakhapatnam v
Haldia |
|
|
|
|
Branches : |
L and 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 v
Jaipur v
Bhopal v
Nagpur v
Durgapur v
Jamshedpur v
Guwahati v
Bhubaneswar v
Vishakhapatnam v
Coimbatore v
Kochi v
Madurai v
Surat |
DIRECTORS
|
Name : |
Mr. A. M. Naik |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Jagadish
Pandurang Nayak |
|
Designation : |
Whole-time Director and President – Operations |
|
|
|
|
Name : |
Mr. Y. M.
Deosthalee |
|
Designation : |
Whole-time Director and Chief Financial Officer |
|
|
|
|
Name : |
Mr. K.
Venkataramanan |
|
Designation : |
Whole-time Director and President – Operations |
|
|
|
|
Name : |
Mr. R. N. Mukhija |
|
Designation : |
Whole-time Director and Senior Vice President – Operations |
|
|
|
|
Name : |
Mr. K V Rangaswami |
|
Designation : |
Whole-time Director and President |
|
|
|
|
Name : |
Mr. S Rajgopal |
|
Designation : |
Nominee (UTI) |
|
|
|
|
Name : |
Mr. B. P.
Deshmukh |
|
Designation : |
Nominee (GIC) |
|
|
|
|
Name : |
Ms. Kranti Sinha |
|
Designation : |
Nominee (LIC) |
|
|
|
|
Name : |
Mr. S N Talwar |
|
Designation : |
Nominee (LIC) |
|
|
|
|
Name : |
Mr. M M Chitale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A B Saharya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Surinder Nath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. U Sundararajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. K. Magapu |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. A K Shukla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M V Kotwal |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. Thomas Mathew |
|
Designation : |
Nominee |
|
|
|
|
Name : |
Mr N Mohan |
|
Designation : |
Nominee |
|
|
|
|
Name : |
Mr. Subhodh Bhargava |
|
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
and 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 and T Drilling Equipment Limited |
|
Other
Directorship : |
v LTM Limited v Narmada Cement Company Limited v L and T Finance Limited v L and T Information Technology Limited v L and T Equipment Leasing Company Limited v L and T Cement Limited v Tractor Engineers Limited v Audco India Limited v Ewac Alloys Limited v Gujarat Leather Industries Limited v L and T
–Komatsu Limited v L and T –John Deere Limited v L and T –Case Equipment Limited v L and 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 : |
v Narmda Cement Company Limited v L and T Finance Limited v L and T Information Technology Limited v L and T Infocity Limited v L and T Capital Company Limited v L and T Trade.Com Limited v L and T Cement Limited v Bhilai Power Supply Company Limited v L and T –Komatsu Limited v L and T –John Deere Limited v Dhamra Port Company Limited v L and T –Case Equipment Limited v L and T Communications Limited v International Seaports Pte Limited v Larsen and Toubro Ceylinco (Private)
Limited |
|
|
|
|
Name
: |
Mr. D V Kapur |
|
Designation
: |
Director |
|
Age
: |
73 years |
|
Qualification
: |
B E Electrical |
|
Other
Directorship : |
v Reliance Industries Limited v Reliance Power Limited v Reliance Salgaocar Power Company Limited v Reliance Utilities and Power Limited v Jacobs H and G Limited v GKN Driveshafts (India) Limited v Tata Chemicals Limited v Honda Seil Power Products Limited v Zenith Limited v DLF Power Limited v DCM Hyundai Limited v Drivetech Accessories Limited |
|
|
|
|
Name |
Mr. S. S. Marathe |
|
Designation |
Director |
|
Age |
79 years |
|
Qualification |
M A Economics |
|
Other
Directorship |
v Sandvik Asia Limited v Automotive Axles Limited v Bajaj Tempo Limited v Bharat Forge Limited v Deepak Fertilisers and Chemicals Limited v Finolex Industries Limited v Glaxo India Limited v Indian Organic Chemicals Limited v Kinetic Motors Limited v Kirloskar Brothers Limited v Kirloskar Electric Limited v Mandovi Pellets Limited v Tata Assets Management Company Limited v P. P. Holding Private Limited v Accord Solutions Private Limited v GDA Trust Management Private Limited v Pan Gulf Group Limited |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.12.2007
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
Public shareholding |
|
|
|
|
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
42943144 |
15.43 |
|
Financial Institutions / Banks |
45960754 |
16.52 |
|
Central Government/ State Government(s) |
- |
- |
|
Venture Capital
Funds |
- |
- |
|
Insurance Companies |
16545560 |
5.95 |
|
Foreign Institutional Investors |
54161947 |
19.46 |
|
Foreign Venture Capital Investors |
- |
- |
|
Any Other (specify) |
- |
- |
|
Foreign Bank |
4468 |
0.00 |
|
|
|
|
|
Non-institutions |
|
|
|
Bodies Corporate |
10406348 |
3.74 |
|
Individuals |
|
|
|
Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
63883551 |
22.96 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
1707118 |
0.61 |
|
Any Other (specify) |
- |
- |
|
Foreign Nationals |
129394 |
0.05 |
|
Non-Residents |
2117897 |
0.76 |
|
Trust |
37196136 |
13.37 |
|
Directors and Relatives |
3231104 |
1.16 |
|
Foreign Companies |
3689 |
0.00 |
|
GRAND TOTAL (A)+(B)+(C) |
278291110 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and
Sellers of earthmoving machinery including bulldozers, dumpers, scrappers,
loaders, shovels, vibratory compactors and drag lines. |
||||||||||||
|
|
|
||||||||||||
|
Products : |
|
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 |
22 |
|
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 |
21457 |
|
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 |
4403446 |
|
Miscellaneous
electrical items |
Nos. |
1049100 |
1039100 |
-- |
|
Petrol dispensing
and metering pumps |
Nos. |
4800 |
4800 |
7898 |
|
Press tools, jigs,
fixtures, dies for pressure, castings, moulds for plastic injection and
bakelite |
Rs./Nos. |
22.00 millions |
29.50 millions |
226 NOS. |
|
Glass bottles and
jars |
Nos. in Million |
Not Applicable |
[400] |
[107.9] |
|
Industrial
Machinery |
Tones |
12000 |
12000 |
11953 |
|
Industrial
Electronic Control Panels |
Nos. |
2500 |
2500 |
559 |
|
Electronic
Devices |
Nos. |
30000 |
30000 |
6930 |
|
Electro surgical
unit and accessories |
Nos. |
Not Applicable |
1250 |
492 |
|
Ultrasound equipment
and accessories |
Nos. |
Not Applicable |
1000 |
658 |
|
Patient
monitoring system and accessories |
Nos. |
Not Applicable |
7000 |
6872 |
|
Relays |
Nos. |
Not Applicable |
60000 |
58341 |
|
Control &
relay panels |
Nos. |
Not Applicable |
100 |
-- |
|
Electricity
meters |
Nos. |
Not Applicable |
700000 |
660383 |
|
Transmission line
tower |
Tones |
51000 |
51000 |
54615 |
|
Steel structural
fabrication |
Tones |
12000 |
12000 |
36223 |
|
Steel re-rolling |
Tones |
40000 |
40000 |
14101 |
|
Ready mix concrete |
M3 |
4166600 |
4166600 |
2737523 |
GENERAL
INFORMATION
|
No. of Employees : |
22922 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Banking
Relations : |
Good |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Auditors : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Name : |
Sharp and Tannan Chartered
Accountants |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Joint Ventures: |
v International Metro Civil Contractors Joint Venture v The Dhamra Port Company Limited v L and T-Valdel Engineering Limited (Formerly, L and T-Valdel Engineering Private Limited) v Desbuild-L and T Joint Venture v Larsen and Toubro Limited-Shapoorji Pallonji and Company Limited 10 v Joint Venture (Les Palles Exhibition Centre) v L and T-AM Tapovan Joint Venture 12 (Tapovan Vishnugarh Hydro Project) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Associates: |
v Tractor Engineers Limited v L and T Finance Limited v L and T Capital Company Limited v Larsen and Toubro Infotech Limited v Larsen and Toubro Infotech GmbH v L and T Transportation Infrastructure Limited v HPL Cogeneration Limited v Narmada Infrastructure Construction Enterprise Limited v L and T Western India Tollbridge Limited v India Infrastructure Developers Limited v Larsen and Toubro LLC v Larsen and Toubro International FZE v L and T Infrastructure Development Projects Limited v L and T Infocity Limited v Hyderabad International Trade Expositions Limited v Andhra Pradesh Expositions Private Limited v L and T-ECC Constiuction (M) SON. BHD. v Bhilai Power Supply Company Limited v Larsen and Toubro (Oman) LLC v Raykal Aluminuri Company Private Limited v Cyber Park Development and Construction Limited v L and T-Sargent and Lundy Limited v Larsen and Toubro Qatar LLC v L and T Overseas Projects Nigeria Limited v L and T Infocity Infrastructure Limited v Wholly Owned Subsidiary v Wholly Owned Subsidiary v Subsidiary of L and T Finance Limited* v Wholly Owned Subsidiary v Wholly Owned Subsidiary of Larsen and Toubro Infotech Limited v Subsidiary of L and T Infrastructure Development Projects Limited v Subsidiary of L and T Infrastructure Development Projects Limited v Subsidiary of L and T Infrastructure Development Projects Limited v Wholly Owned Subsidiary v Wholly Owned Subsidiary v Subsidiary of L and T Urban Infrastructure Limited v Subsidiary of L and T Infocity Limited v Wholly Owned Subsidiary of Hyderabad International Trade v Expositions Limited v Subsidiary of Larsen and Toubro International FZE v Subsidiary of Larsen and Toubro International FZE v Subsidiary of India Infrastructure Developers LimitedSubsidiary of L and T Infrastructure Development Projects Limited v Subsidiary of Larsen and Toubro International FZE v Wholly Owned Subsidiary of Larsen and Toubro International FZE v Subsidiary of L and T Infocity Limited v Larsen and Toubro Electromech LLC v L and T Infocity Lanka Private Limited v L and T (Wuxi) Electric Company Limited v International Seaports Pte. Limited v International Seaports (India) Private Limited v L and T Panipat Elevated Corridor Private Limited v L and T Tech Park Limited v L and T Krishnagiri Thopur Toll Road Limited v L and T Western Andhra Tollways Limited v L and T Vadodara Bharuch Tollway Limited v Land T Interstate Road Corridor Limited v Spectrum Inlotech Private Limited v L and T Urban Infrastructure Limited v Larsen and Toubro Information Technology v Canada Limited v L and T Infrastructure Finance Company Limited v L and T Power Projects Limited v International Seaport Dredging Limited v L and T Modular Fabrication Yard LLC v L and T Saudi Arabia LLC v Larsen and Toubro Readymix Concrete Industries v L and T Electricals Saudi Arabia LLC v Larsen and Toubro Kuwait Construction General v Contracting Company WLL v Larsen and Toubro (Qingdao) Rubber Machinery v Company Limited v Larsen and Toubro (Jiangsu) Valve Company Limited v L and T Boilers Private Limited v L and T Uttaranchal Hydropower Limited v L and T Bangalore Airport Hotel Limited v L and T Turbo Generator Private Limited v L and T Vision Ventures Limited v L and T Phoenix Infoparks Private Limited v L and T South City Projects Limited v GDA Technologies Inc. v GDA Systems Private Limited v GDA Technologies Limited v CSJ Infrastructure Private Limited v Audco India Limited v L and T -Chiyoda Limited v L and T -Ramboll Consulting Engineers Limited v Voith Paper Technology (India) Limited v International Seaport (Haldia) Private Limited v II Vishakhapatnam Industrial Water Supply Company Limited v L and T -Ascendas Private Limited v Ewac Alloys Limited v L and T -Komatsu Limited v L and T -Case Equipment Private Limited v Kakinada Seaports Limited v Second Vivekananda Bridge Tollway Company Private Limited v GVK Jaipur Kishengarh Expressway Private Limited |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Membership : |
Confederation of
Indian Industry |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1625000000 |
Equity shares |
Rs. 2/- each |
Rs.3250.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
283270748 |
Equity shares |
Rs.2/- each |
Rs.566.500
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
566.500 |
274.800 |
259.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
56602.800 |
45777.000 |
33431.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
57169.300 |
46051.800 |
33691.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2454.000 |
4657.900 |
7937.200 |
|
|
2] Unsecured Loans |
18323.500 |
9877.800 |
10653.400 |
|
|
TOTAL BORROWING |
20777.500 |
14535.700 |
18590.600 |
|
|
DEFERRED TAX LIABILITIES |
2048.800 |
2097.900 |
0.000 |
|
|
Employee Stock options Outstanding |
515.000 |
349.900 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
80510.600 |
63035.300 |
52281.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17052.600 |
12927.000 |
10172.400 |
|
|
Capital work-in-progress |
4387.800 |
2585.200 |
658.200 |
|
|
|
|
|
|
|
|
Fixed asset held for sale |
0.000 |
1.000 |
|
|
|
INVESTMENT |
31044.400 |
19195.200 |
9609.300 |
|
|
DEFERREX TAX ASSETS |
1646.900 |
1325.100 |
0.000 |
|
|
INTANGIBLE ASSETS |
806.500 |
533.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
30011.400
|
22102.700 |
23108.400
|
|
|
Sundry Debtors |
55046.400
|
48141.600 |
39636.000
|
|
|
Cash & Bank Balances |
10944.300
|
5832.000 |
8280.200
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
22579.300
|
19105.600 |
18597.200
|
|
|
Interest accrued on Investment |
265.200
|
172.600 |
0.000
|
|
Total
Current Assets |
118846.600
|
95354.500 |
89621.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
81571.300
|
58889.000 |
50232.300
|
|
|
Provisions |
11801.300
|
10216.500 |
7946.400
|
|
Total
Current Liabilities |
93372.600
|
69105.500 |
58178.700 |
|
|
Net Current Assets |
25474.000
|
26249.000 |
31443.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
98.400 |
219.800 |
398.900 |
|
|
|
|
|
|
|
|
TOTAL |
80510.600 |
63035.300 |
52281.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
175788.400 |
147348.000 |
141015.300 |
|
|
Other
Operational Income |
353.200 |
292.300 |
0.000 |
|
|
Other Income |
4269.700 |
4346.000 |
0.000 |
|
|
Total Income |
180411.300 |
151986.300 |
141015.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
20048.900 |
13136.500 |
12853.900 |
|
|
Provision for Taxation |
6018.700 |
3015.100 |
3015.400 |
|
|
Profit/(Loss) After Tax |
14030.200 |
10121.400 |
9838.500 |
|
|
|
|
|
|
|
|
Export Value |
0.000 |
0.000 |
26673.700 |
|
|
|
|
|
|
|
|
Import Value |
0.000 |
0.000 |
14813.700 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing construction and operating
expenses |
130782.400 |
115603.400 |
|
|
|
Staff expenses |
12582.100 |
8925.400 |
|
|
|
Sale , administration and other expenses |
14991.500 |
12410.500 |
|
|
|
Interest and Brokerage |
339.300 |
750.700 |
128161.400 |
|
|
Depreciation, Obsolescence and impairment |
1568.300 |
1086.100 |
|
|
|
Amortization of intangible assets |
98.800 |
73.700 |
|
|
|
Other Expenditure |
47.400 |
33.800 |
|
|
Total Expenditure |
160409.800 |
138883.600 |
128161.400 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
45052.100
|
54999.400
|
63826.800 |
84668.700 |
|
Other Income |
2114.700
|
233.300
|
1008.700 |
3362.800 |
|
Total Income |
47166.800
|
55232.700
|
64835.500 |
88031.500 |
|
Total Expenditure |
40821.600
|
49136.300
|
56923.900 |
73487.400 |
|
Operating Profit |
6345.200
|
6096.400
|
7911.600 |
14544.100 |
|
Interest |
157.200
|
132.400
|
438.400 |
498.600 |
|
Gross Profit |
6188.000
|
5964.000
|
7473.200 |
14045.500 |
|
Depreciation |
424.100
|
483.200
|
527.000 |
681.700 |
|
Tax |
2014.000
|
2006.300
|
2156.500 |
3444.200 |
|
Reported PAT |
3768.500
|
3480.200
|
4817.900 |
9667.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.34 |
0.42 |
0.52 |
|
Long Term Debt-Equity Ratio |
0.25 |
0.31 |
0.35 |
|
Current Ratio |
1.23 |
1.35 |
1.35 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
7.01 |
6.90 |
6.54 |
|
Inventory |
6.88 |
6.71 |
6.56 |
|
Debtors |
3.48 |
3.39 |
3.64 |
|
Interest Cover Ratio |
15.56 |
7.85 |
8.40 |
|
Operating Profit Margin (%) |
12.83 |
9.74 |
8.25 |
|
Profit Before Interest And Tax
Margin (%) |
11.94 |
9.02 |
7.60 |
|
Cash Profit Margin (%) |
8.72 |
6.35 |
5.82 |
|
Adjusted Net Profit Margin (%) |
7.82 |
5.64 |
5.16 |
|
Return On Capital Employed (%) |
30.92 |
24.16 |
22.12 |
|
Return On Net Worth (%) |
27.11 |
21.27 |
22.70 |
LOCAL AGENCY
FURTHER INFORMATION
YEAR IN RETROSPECT
The gross sales
and other income for the financial year under review were Rs.183630.000
millions as against Rs.154290.000 millions for the previous financial year registering
an increase of 19%. The Profit before tax and extraordinary items (after
interest and depreciation charges) of Rs.20050.000 millions and the Profit
after tax (before extraordinary items) of Rs.14030.000 millions for the
financial year under review as against Rs.13140.000 millions and Rs.9420.000
millions respectively for the previous financial year, improved by 53% and 49%
respectively.
SUBSIDIARY
COMPANIES
During the year
under review, the Company subscribed to the following equity shares in various
Subsidiary Companies:
1] 25000000 equity
shares of Rs.10 each in L and T Finance Limited at a premium of Rs.30 per
share.
2] 243000000
equity shares of Rs.10 each in L and T Infrastructure Finance Company Limited
at par.
3] 41990585 equity
shares of Rs.10 each in L and T Infrastructure Development Projects Limited at
a premium of Rs. 45.34 per share.
4] 6769518 equity
shares of Rs.10 each (Re.1 paid-up) in L and T Infrastructure Development
Projects Limited.
5] 200 equity
shares of Dhs. 550,500 each in Larsen and Toubro International FZE for
Rs.1366.600 millions (including outstanding application money of Rs.4.500
millions converted into equity during the year).
6] 50000 equity
shares of Rs.10 each in L and T Power Projects Limited at par.
7] 8600 equity
shares of Rs.10,000 each in International Seaport Dredging Limited at par
8] 2250000
equity shares of Rs.5 each (Rs.2.20 paid-up) in Larsen and Toubro Infotech
Limited at a premium of Rs.233.35 per share.
The Company was allotted
21060000 equity shares of Rs.10 each in India Infrastructure Developers Limited
at par pursuant to the scheme of amalgamation of L and T Power Investments
Private Limited with India Infrastructure Developers Limited.
The Company also
acquired 11267 13% preference shares of Rs.10000 each in International Seaport
Dredging Limited, at par during the year under review.
The Company
further invested Rs.166.000 millions in Larsen and Toubro (Wuxi) Electric
Company Limited, a Wholly Owned Subsidiary incorporated in the People's
Republic of China.
Subsequently with
a view to consolidate its investments in overseas Companies, the Company sold
its stake in Larsen and Toubro (Wuxi) Electric Company Limited to Larsen and
Toubro International FZE, a Wholly Owned Subsidiary of the Company at book
value of Rs.218.000 millions.
The statement
pursuant to Section 212 of the Companies Act, 1956, containing details of
subsidiaries of the Company, forms part of the Annual Report. In view of the
exemption received from Central Government vide letter no. 47/167/2007-CL-lll
dated April 17, 2007, the Audited Statement of Accounts, the Reports of the
Board of Directors and Auditors of the Subsidiary companies are not annexed as
required under Section 212(8) of the Companies Act, 1956. Shareholders who wish
to have a copy of the full report and accounts of the subsidiaries will be
provided the same on receipt of a written request from them. These documents
will be put up on the Company's Website viz. www.larsentoubro.com and will also
be available for inspection by any shareholder at the Registered Office of the
Company on any working day during business hours.
Management
Discussion and Analysis
Review of the
Economy
The Indian
economy, characterized by strong macro-economic fundamentals, has drawn the
world's attention as one of the fastest growing economies with future promise.
The nation has continued on its high growth trajectory registering an
impressive growth of 9.4% during fiscal year 2006-2007. The average GDP growth
rate reported for the last 4 years is a record 8.6 percent. The industrial
sector remained buoyant, driven by robust performances from manufacturing,
services and construction sectors. Foreign trade has been growing at an average
rate of 27% during the past 3 years. Savings and investment rates are estimated
at a healthy 32.4% and 33.8% of GDP respectively. It is heartening to note that
foreign direct investment during the fiscal year 2006-2007 has doubled to USD
15 billion and is expected to scale up with further opening up of core and
infrastructure sectors.
Inflation has been
moderate and is expected to be contained at the present level of around 5%,
supported by a strong rupee, timely monetary policy measures of the RBI and a
buoyant economy. International credit rating agencies S and P and Moodys have
raised India's credit outlook to investment grade, influenced largely by
accelerated growth record and astute handling of debt by the government. The
only sore note has been the sluggish growth of agriculture, averaging at 2.3%
during the 10lh five year plans.
The global economy
recorded a growth of 5.4% during the year 2006 with an improved US economy
recording a growth of 3.3%. However, some moderation in growth is forecast for
the year 2007 with the global growth rate falling to 4.9% and the US economy
slowing to 2.2%. The oil rich countries, particularly in Middle-East and South
East Asian region, have accelerated investment in the infrastructure and
construction sectors. With growing cooperation amongst the oil producing
countries, thanks to windfall gains from stable high oil prices, joint efforts
are being initiated for ramping up exploration facilities and distribution
network.
Infrastructure and
Capital Goods Industry
In 2006-2007,
Indian industry had a strong growth of over 11%, ably supported by a 12% growth
in manufacturing. Reflecting the buoyant capacity addition in the economy, the
capital goods industry grew by a healthy 17%.
A notable feature
of the current growth phase is the significant rise in the rate of capital
formation which has moved from 25% in 2002- 2003 to 32% of GDP in 2005-2006.
However, the rate of capital formation needs to further accelerate so as avoid
capacity constraints. The government has planned a series of measures to
encourage private sector participation and increase spending on infrastructure.
Efforts have been made to streamline procedures and introduce innovative
schemes to exploit the country's surging foreign exchange reserves.
In the core
sectors, power generation has grown by 7.3% during 2006-2007. In the ensuing
year, output would be higher with many mega projects in the offing under both
private and public sectors. Crude oil production and throughput by refineries
have increased over the previous year by 6% and 12% respectively. Capacities
are being ramped up in Railways, Roads, Ports, Airports and Urban
infrastructure to sustain the momentum of double digit growth in the industrial
sector.
The estimated
investment requirement for infrastructure has now been pegged at around USD 450
billion against the earlier estimate of USD 320 billion during the 11th five
year plan. This is both a challenge and an opportunity for the government and
the private sector. Sustained efforts are required to improve every segment of
infrastructure to sustain the growth momentum of the economy.
Business
Performance
Buoyed by economic
growth, within India and outside, the Company has yet again produced a robust performance
in 2006-2007. The pace of infrastructure development has picked up in the
country and in the neighbouring regions. Industries such as crude oil
production and refining, gas processing, cement, steel and other metals have
achieved smart growth during the year. The favorable all-round economic climate
has opened up opportunities for the capital goods sector including construction
and heavy engineering manufacturing companies. As a result, all business
divisions of the Company registered impressive performance during the year. The
upturn was equally commendable for the Group's Subsidiary and Associate
companies, particularly in information technology, financial services and
machinery manufacturing sectors.
Strategic
Initiatives
The Company and
the Group have consolidated growth oriented initiatives under the "LAKSHYA" program
during the year. Creation of new facilities and expansion in existing
manufacturing facilities has been initiated across all business divisions.
Divisions have undertaken many operational excellence programs so as to improve
margins and become more competitive through product positioning in
international markets. In order to scale up the business in hydrocarbon mid and
down stream sector, a separate vertical has been formed, which combines the
entire gamut of engineering, procurement, construction and project management
services. Creation of similar business verticals in other business lines of the
Company is underway. Initiatives for talent attraction and retention have also been
accelerated during the year to capitalize on emerging business opportunities.
The Company has
successfully completed the amalgamation of residual electrical business taken
over from Datar Switchgear Limited, thereby adding new product portfolio in the
medium tension switchgears. With a view to building a large capital base in the
infrastructure subsidiaries, the Company infused fresh capital during the year.
Power has emerged a thrust area for subject which has built expertise in power
plant construction and erection. In order to establish a strong presence in the
international and local power space, the Company has entered into a joint
venture with Mitsubishi Heavy Industries Limited for manufacture of super
critical boilers. In order to reap the benefits of manufacturing and easy
access to new markets, the Company has set up facilities for manufacture of
industrial valves and rubber processing machinery in China and for switchboards
in Saudi Arabia. The Company is presently exploring new business opportunities
in the field of Water and Railways. It has made a modest beginning in the ship
building space and is currently executing orders for ships at its Hazira Works.
All the above
strategic initiatives will ensure that the Company is able to harness emerging
growth potential. Considering the impressive track record of the Company during
the past few years, the confidence level of the businesses in achieving the
challenging "LAKSHYA" targets
has soared.
In this backdrop,
the management is pleased to present the analysis of Division-wise performance
for the year 2006-2007 and its outlook for the future. This outlook is based on
the present assessment of the current business environment. It may vary
depending on the changes in the underlying economic environment, both in India
and abroad.
The Company's
businesses have been classified in to 6 Operating Divisions:
v
Engineering, Construction and Contracts,
v
Engineering and Construction - (Projects),
v
Heavy Engineering,
v
Electrical and Electronics,
v
Machinery and Industrial Products and
Year 2006-2007 at
a Glance
• New Order inflow
at Rs. 306020.000 millions in Current Year as against Rs. 223700.000 millions
in Previous Year (USD 7.55 Billion and USD 5.52 Billion respectively) -
37% growth year-on-year.
• Order Book as at
March 31, 2007 Rs. 368820.000 millions as against Rs. 248570.000 millions as at
March 31, 2006 (USD 9.10 Billion and USD 6.13 Billion respectively) -'48% growth year-on-year.
• Gross Sales at Rs.
179010.000 millions in Current Year as against Rs. 149660.000 millions in Previous
Year (USD 4.42 Billion and USD 3.69 Billion respectively) - 20% growth over previous year
• Segment wise
composition of revenues: Engineering and Construction Segment - 73.5% in Current
Year as against 75.8% in Previous Year Electrical and Electronics
Segment - 11.3% in Current Year
as against 70.2% in Previous Year
Machinery and Industrial Products Segment - 70% in Current Year as against 9.6% in Previous Year
Others Segment -
5.2% in Current Year as against 4.4% in Previous Year
• PBDIT excluding
extra-ordinary items at Rs. 22090.000 millions in Current Year as against
Rs.15030.000 millions in Previous year (USD 545 Mio and USD 371 Mio
respectively) - up by 47%
• PAT including
extra-ordinary items at Rs. 14030.000 millions in Current Year as against
Rs.10120.000 millions in PY (USD 346 Mio and USD 250 Mio respectively) - up by 39%
• Gross Debt Equity
ratio of 0.36: 1 as against 0.32: 1 in Previous
Year
L and T Group
• Gross Sales at
Rs. 207000.000 millions in Current Year as against Rs. 167470.000 millions in Previous Year (USD 5.11
Billion and USD 4.13 Billion respectively) - 24% growth over Previous Year
• PAT including
extra-ordinary items at Rs. 22400.000 millions in Current Year as against Rs.
13170.000 millions in Previous Year (USD 553 Mio and USD 325 Mio
respectively) - up by 70%
Financial analysis
and review 2006-2007 L and T
Independent Financial Performance review Encouraging financials
The Company has
yet again produced an impressive financial performance in all its parameters,
namely, revenue growth, operating margins and resource utilization. It is
heartening to note that all the business segments have withstood the
competition from established international players and succeeded in generating
an improved performance. Almost all the businesses have achieved a comfortable
Return on Capital Employed (ROCE) and have reported positive Economic Value
Added (EVA). This was achieved both by improving profitability as well as
containing capital employee in the business. This is reflected in the Company's
ROCE, which increased significantly from 18.7% to 20.4%. The Return on Net
worth (RONW) smartly increased from 25.7% to 27.2%. Economic Value Added at the
Company level at Rs. 5700.000 millions is higher by 56% over the previous year.
Order Inflow and
Sales
The Company
secured fresh orders worth Rs.306020.000 millions during the year, registering
a growth of 37% over the previous year. Orders secured in infrastructure and
hydro carbon sectors have grown in size and complexity, some of them exceeding
Rs.10000.000 millions. The mega scale of projects called for detailed planning,
engineering and execution skills. Despite stiff competition from some of the
international and national players, the quality of orders bagged during the
year is promising. The growth in orders has been sustained both in product and
equipment businesses, being in the range of 31% to 34%.
Sales and service
income for the year at Rs.179010.000 millions increased by 20% as compared to
the previous year at Rs. 149660.000 millions. New orders have generated healthy
margins, largely due to judicious selection of project orders, adherence to a
risk management process, improved product positioning and maintenance of high
standards of quality and delivery commitments. in the business. This is
reflected in the Company's ROCE, which increased significantly from 18.7% to
20.4%. The Return on Net worth (RONW) smartly increased from 25.7% to 27.2%.
Economic Value Added at the Company level at Rs. 5700.000 millions is higher by
56% over the previous year.
Order Inflow and
Sales
The Company
secured fresh orders worth Rs. 306020.000 millions during the year, registering
a growth of 37% over the previous year. Orders secured in infrastructure and hydro
carbon sectors have grown in size and complexity, some of them exceeding Rs.
10000.000 millions. The mega scale of projects called for detailed planning,
engineering and execution skills. Despite stiff competition from some of the
international and national players, the quality of orders bagged during the
year is promising. The growth in orders has been sustained both in product and
equipment businesses, being in the range of 31% to 34%.
Sales and service
income for the year at Rs.179010.000 millions increased by 20% as compared to
the previous year at Rs. 149660.000 millions. New orders have generated healthy
margins, largely due to judicious selection of project orders, adherence to a
risk management process, improved product positioning and maintenance of high
standards of quality and delivery commitments.
FIXED ASSETS:-
v Land – Freehold
v Shops
v Buildings
v Plant and machinery
v Furniture and fixtures
v Vehicles
v Aircraft
v Plant and machinery
AS PER WEBSITE
Overview
Subject is a technology, engineering, construction and
manufacturing company.
Subject has an international presence, with a global spread
of offices. A thrust on international business has seen overseas earnings grow
significantly. It continues to grow its overseas manufacturing footprint, with
facilities in China and the Gulf region.
Subject progress must be achieved in harmony with the
environment. A commitment to community welfare and environmental protection are
an integral part of the corporate vision.
Operating
Divisions:
v Engineering
and Construction Projects (E&C)
v Heavy
Engineering (HED)
v Engineering
Construction and Contracts (ECC)
v Electrical
and Electronics (EBG)
v Machinery
and Industrial Products (MIPD)
v Information
Technology and Engineering Services
PRESS RELEASE:
L&T Secures Transmission Line Orders Worth Rs. 4,580
million
Mumbai, March 5, 2008:
Larsen & Toubro Limited (L & T) has bagged three orders totaling Rs.
4580 million (Rs. 4580.000 Millions) for transmission line projects.
The company has received a Rs. 2380 million (Rs. 2380.000
Millions) order from M/s. Jaypee Powergrid Limited (a joint venture between
M/s. Jaiprakash Hydro Power Limited and M/s. Power Grid Corporation of India
Limited) for construction of 155 km of transmission line for evacuation of power
from the 1000 MW Kacham-Wangtoo Hydro Electric Project.
The scope of work for the project to be executed by L &
T’s Engineering, Construction and Contracts Division (ECC) involves survey,
fabrication and supply of transmission line towers and erection of 155 km of
transmission line from Karcham-Wangtoo to Rampur in Himachal Pradesh through
hilly / mountainous terrain. L&T bagged this contract against international
competition and the project will be completed in 30 months.
In another development, L&T has also secured two orders
from M/s. Power Grid Corporation of India Limited (PGCIL) for construction of
166 km of 400 kV D/C transmission line associated with Parbati III HEP
Transmission System and 255 km of 400 kV D/C Gorakhpur – Lucknow Transmission Line
associated with Northern Region Strengthening Scheme – II.
The scope of work to be executed by L & T’s ECC Division
involves detailed survey, fabrication and supply of transmission line towers
and erection of 421 km of transmission line.
Valued at Rs.2200 million (Rs. 2200.000 Millions), the PGCIL
projects are to be completed in 24 months.
Background:
L & T is a USD 6 billion technology, engineering and
construction company, with global operations. It is one of the largest and most
respected companies in India’s private sector.
A strong, customer-focussed approach and the constant quest
for top-class quality have enabled L & T to attain and sustain leadership
in its major lines of business over seven decades.
L&T's
Performance for the year ended March 31, 2008
Mumbai, May 29, 2008: Larsen and Toubro Limited (L&T), the leading
engineering and construction conglomerate, has reported excellent results for
the year ended March 31, 2008, reflecting an all-round superior business performance.
The Gross Sales & Service revenue registered a y-o-y growth of 40.7% at Rs.
25187 crore. The share of revenue from international operations constituted
16.4% of the Gross Revenue. Continuing the growth trend set in the past, the
Order Inflow rose by 37% over the previous year, which validates the Company’s
leadership position in infrastructure-building, turnkey project execution and
manufacturing businesses.
L&T’s
premium market position and delivery leadership have enabled it to report
healthy financials for the quarter ended Mach 31, 2008. While Order Inflow for
the quarter registered a growth of 56%, Gross Sales & Service revenue at
Rs.8578 crore for the quarter grew by 34.7%, when compared with the
corresponding quarter of the previous year.
Profitability
posted smart improvement aided by judicious selection of orders, timely
execution of jobs and continuous cost optimization efforts, despite rising
input prices. Profit after Tax (PAT) for the year, including exceptional gains,
at Rs.2173 crore surged by 54.9% over the PAT of Rs. 1403 crore for the
previous year. Excluding exceptional gains, PAT for the year ended March 31,
2008 grew by 51.6%
Similarly, PAT of
Rs. 967 crore for the quarter ended March 31, 2008, grew by 38% over the PAT of
Rs. 701 crore for the corresponding quarter of the previous year.Excluding
exceptional gains, PAT for the quarter ended March 31, 2008 increased by 27%.
Operating Profits
(EBITDA) for the year at Rs. 3405 crore grew by 54%, which translates into an
improvement in the operating margins by 1 percentage point over the previous
year. Strong infrastructure and industrial growth, buoyant market for capital
goods sector and a sound risk management framework – all these factors together
contributed to the robust growth in Revenue & Profitability during the
year.
The Board of
Directors has recommended a final dividend of Rs.15/- per equity share.
Including the interim dividend of Rs.2/- per share already paid, the total
dividend for the year works out to Rs.17/- per equity share.
The Board has also
recommended for the approval of the shareholders, an issue of bonus equity shares in the ratio of 1:1
( one bonus share of Rs.2/- each for every equity share held).
Group
Financials
The strong
financial performance of the Company was adequately complemented by the other
companies in the Group leading to a growth in Group performance both in terms
of Revenue and Profitability. The Group registered a y-o-y increase of 43% in
the Total Income which stood at Rs.
29848 crore for the year ended March 31, 2008.
The Group PAT for
the year 2007-08 excluding exceptional gains on divestitures stood at Rs. 2304
crore posting a healthy growth of 27% over the similar PAT of Rs. 1810 crore
for the previous year.
Engineering
& Construction (E&C) Segment
The core
infrastructure and industrial sectors have attracted sizeable investment in the
recent times, driven by sound fiscal and economic policies of the government.
The manufacturing sector is also on a growth mode to meet not only the domestic
demand but also provide a cost effective sourcing avenue to some of the global
majors. Capitalizing on the opportunities provided by these sectors, the
E&C segment reported a significant growth in its Order Inflows during the
year 2007-08 at Rs. 35392 crore and posted an increase of 40% over the previous
year. The share of international orders booked during the year was 17% of the
segment’s total Order Inflow.
E&C segment
revenues for the year ended March 31, 2008 at Rs. 19377 crore registered an increase
of 44% when compared to the previous year. The share of export revenues
represented 16 % of the year’s segment revenues.
Driven by
operational excellence initiatives and improved execution efficiencies, the
segment Operating Margin saw a noteworthy improvement of 1.3 percentage point
for the year ended March 31, 2008 over the previous year. The segment ended the
year with a healthy Order Book at Rs. 50931 crore. The international Order Book
at Rs. 8210 crore represented 16% of the segment’s Order Book.
Electrical
& Electronics Segment
Electrical &
Electronics segment reported a steady growth in its Order Inflows and Sales,
reflecting the Company’s dominant position in this sector. The segment revenues
at Rs. 2663 crore for the year ended March 31, 2008 was higher by 29% when
compared to the previous year. Electrical Standard Products and Systems,
Control & Automation and Petrol Dispensing Pump businesses realized higher
volumes and price differentials from the market so as to neutralize the adverse
impact of rising input costs. In addition, capacity enhancement and improved
product offerings enabled it to optimize the cost of production and
distribution, thereby sustaining the profitability during the year.
Machinery &
Industrial Products Segment
Backed by strong
demand from the manufacturing and construction sectors, the segment posted
gross revenues of Rs. 2411 crore during the year ended March 31, 2008
registering a healthy increase of 31% over the previous year. Increased
activity in the domestic industrial, infrastructure and construction
sectors has benefited Industrial Valves, Construction Equipment and welding
systems businesses significantly. Besides increased volumes, higher price
realization in the domestic market and improved manufacturing efficiencies for
machinery businesses contributed to higher profitability of the segment.
Outlook
While macro
economic fundamentals continue to inspire confidence, the recent slowdown in
the industrial sectors, coupled with rising input costs, particularly oil price, and credit squeeze, may have an impact on the capital goods
sector’s ability to sustain the growth momentum in the medium term. However, in
view of the current pace of infrastructure development in the country and the
neighbouring regions, the immediate prospects for growth appear promising. The
company’s businesses are geared up to harness the full potential of the
available opportunities. With a sizable order book, the company is reasonably
confident of producing healthy results in the near 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 :
The 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.
The 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. 42.53 |
|
UK Pound |
1 |
Rs. 83.44 |
|
Euro |
1 |
Rs. 66.18 |
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
EXPLANATIONS
|
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 |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|