L&T announces results. The company is confident on its order book.

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June qaurter results. Revenue for L&T went up by 21% yoy
Larsen & Toubro reported gross revenue of Rs 9578 crore for the quarter ended June 30, 2011 as per its press release. This reflects that there will be a growth of 21% y-o-y growth on the back of healthy order book and superior execution of jobs.

In the current scenario of moderating growth momentum in the economy, the company garnered fresh orders of Rs 16190 crore, taking its order book to Rs 136172 crore as of June 30, 2011.

Majority of the orders came from the building and construction, infrastructure, power generation, transmission and & distribution, minerals & metals and hydrocarbon sectors.

Engineering and construction: The E&C segment achieved Gross Revenue of Rs 8018 crore for the quarter ended June 30, 2011 registering a y-o-y growth of 23%. Execution of several jobs on hand is on schedule.

Despite the sluggish pace of investments seen in the various key sectors of the economy, the segment succeeded in bagging orders totaling to Rs 14,416 crore during the quarter.

The order book of the segment stood at Rs 133739 crore as at June 30, 2011.

Execution efficiencies and tight cost monitoring strategies have enabled the segment to achieve an operating margin of 11.9% during the quarter. Certain high value jobs are yet to reach the threshold level of margin recognition and hence, could not contribute to the operating margin during the quarter.

Electrical and Electronics: Sluggish growth in exports and low demand from domestic market constrained the revenue growth of the segment during the quarter. Gross revenue was Rs 695 crore for the quarter ended June 30, 2011.

The segment martin at 10.8% during the quarter was under pressure with steep increase in input prices, heightened competitive pressures restricting the avenues for price increase and lower volumes.

Machinery & Industrial Products: The segment recorded gross revenue of Rs 666 crore during the quarter ended on June 30, 2011, registering a growth of 25% over the previous year. The segment earned operating margin of 20.1% during the quarter even on a higher salves volume.

Global economic concerns, spiraling inflation and hardening interest rates are likely to impact the growth prospects in the economy. However, Indian economy has a strong fundamental. On the global front, the GCC countries of the middle-east hold opportunities in the areas of hydrocarbon, power transmission & distribution, and infrastructure development. The large order book makes Larsen & Toubro with revenue visibility


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