L&T order book swells to Rs 52,683 cr, profits up 55%

Written by Corporate Bureau | Mumbai, Aug 29 | Updated: Aug 30 2008, 08:23am hrs
Larsen & Toubro Ltd's (L&T) order book as on March 31, 2008 stood at a healthy Rs 52,683 crore, of which Rs 8,736 crore was contributed by international business. This was stated by AM Naik, chairman, L&T at the company's 63rd AGM held here.

Despite large spending on capability building, L&T has been able to maintain a return on capital employed (ROCE) at 20.6%. Its EVA has grown by over 51% to Rs 834 crore in FY 2007-'08. The company has also proposed an issue of bonus shares in the ratio of 1:1.

According to Naik, L&T has posted a 55% rise in profit after tax at Rs 2,173 crore and 41% growth in sales of Rs 25,187 crore. The profit after tax of the L&T group has grown from Rs 1,810 crore to Rs 2,304 crore and the total income has increased by 40% to Rs 29,883 crore. Growth in profitability has enabled L&T to pay a higher total dividend of Rs 17 per equity share on a face value of Rs 2 per share for the year, informed Naik.

Further, he stated that L&T has plans to create 12 operating companies within the existing corporate structure. Each operating company will be responsible for its strategic and operational decisions and performance. To ensure greater empowerment, each operating company will have independent support functions such as finance and accounts, human resource and supply chain management. This new structure is expected to provide a platform for sustained value creation.

L&T's order inflow has increased by 37% to Rs 42, 019 crore in FY 2007-'08. After having bagged the contract for modernisation and expansion of the Delhi International airport last year, we have also bagged the largest order for the Mumbai International airport, said Naik.

The company has also secured an international order for 18 reactors and 4 separators for Kuwait National Petroleum company's `Clean Fuel Project 2020', he added.

In addition to the joint venture (JV) with Mitsubishi Heavy Industries Ltd (MHI) for manufacture of super-critical boilers, L&T has signed another agreement with MHI for manufacturing super-critical steam turbines and generators in India. It has also entered into a JV with the US-based Gulf Interstate Engineering Company (GULF) to provide end-to-end engineering and project management services to the hydro carbon pipeline industry in India and abroad. Naik said, We are constantly strengthening our technological presence in coal gasifier, water and hydrocarbon industry. The Electrical and Electronics Division of the company filed over a hundred patent applications during 2007-08.