Larsen &Toubro (L&T) remains the undisputed number one infrastructure company in India. Nobody could have summarised its role in nation building better than P Chidambaram, who called it India’s only national sector company (on the company’s 70th anniversary when he was the Union Finance Minister). That was in 2007. Today, L&T continues to build on its reputation by maintaining an all round growth across the infrastructure segments where it operates. The recently concluded fiscal has been quite good for the company.
As a company statement said, ‘various cost optimisation initiatives launched by the Company, aided by lower input costs, led to an improvement in the profitability of both project and product businesses’.
The Profit after Tax for L&T as a group for the year at Rs5451 crore grew by a whopping 44% as compared to the previous year. Subsidiaries and associate companies together contributed Rs613 crore to the Group’s profits, posting a rise of more than 100% over the similar amount for the previous year. The Group’s consolidated total income registered Rs 43970 crore vis-a-vis Rs40511 crore for the previous year.
The operating margin at 13.1% improved by 140 basis points over last year, while the order book crossed the Rs100,000 crore mark as of March 31, 2010. (The Engineering & Construction Segment’s contribution to this is Rs 63899 crore). The huge order book gives ample visibility to the company’s continued leadership position. L&T is well poised to take advantage of the opportunities presented by India’s amazing infrastructure development. Moreover, L&T has considerable presence and capabilities in the international markets.
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