Larsen & Toubro Sums up Performance for Quarter Ended June 30, 2013
OREANDA-NEWS. Larsen & Toubro recorded Gross Revenue of' 12704 crore for the quarter ended June 30, 2013, registering an increase of 5% on a y-o-y basis over the corresponding quarter of the previous year. International Revenue at ' 3378 crore grew by 68% vis-a-vis the corresponding quarter of the previous year.
The Company successfully garnered fresh orders worth ' 25159 crore during the quarter April - June 2013, recording a healthy y-o-y growth of 28%. International order inflow at ' 3617 crore grew 2.28 times and constituted 14% of the total order inflow for the quarter April - June 2013. The major orders during the year came from Building & Factories, Transportation Infrastructure, Hydrocarbon and Heavy Civil Infrastructure businesses.
The Order Book at ' 165393 crore as at June 30, 2013 grew 8% on a y-o-y basis. International Order Book grew 16% and constituted 12% of the total Order Book.
Profit after Tax (PAT) for the quarter April-June 2013 stood at ' 756 crore as compared to ' 864 crore recorded for the corresponding quarter of the previous year. The PAT during the quarter was impacted on account of job mix, lower margin accruals and lower other income.
Beginning from the quarter April-June 2013, the operations of the Engineering and Construction segment, which were hitherto reported as part of one single segment, have now been reported into different segments identified based on internal re-structuring and to provide granular clarity on segment information.
Infrastructure Segment
Infrastructure Segment achieved Customer Revenue of ' 5217 crore for the quarter ended June 30, 2013 registering a y-o-y growth of 23%. The revenue growth was mainly driven by Power Transmission & Distribution, Water & Renewable Energy and Transportation Infrastructure businesses. International sales constituted 16% of the total revenue.
The businesses of the Infrastructure Segment secured fresh orders of ' 17580 crore, during the quarter ended June 30, 2013 registering a y-o-y growth of 14% with major contribution from Transportation Infrastructure, Heavy Civil Infrastructure and Building and Factories businesses. International orders constituted around 5% of the total order inflow of the segment during the quarter ended June 30, 2013.
The Order Book of the Segment is ' 110323 crore as at June 30, 2013.
The segment recorded EBIDTA margin at 11.8% during the quarter April-June 2013 vis-a-vis 11.5% recorded in the corresponding quarter of the previous year. The segment margin improved during the quarter on the back of comparatively higher proportion of jobs in margin yielding phase and softer commodity prices.
Hydrocarbon Segment
Hydrocarbon Segment achieved Customer Revenue of ' 2776 crore for the quarter ended June 30, 2013 registering a y-o-y growth of 24%. International sales constituted 66% of the total revenue as compared to 28% in the corresponding quarter of the previous year.
The businesses of the Hydrocarbon Segment secured fresh orders of ' 2799 crore, during the quarter ended June 30, 2013. International orders constituted 49% of the total order inflow of the segment.
The Order Book of the Segment is ' 10078 crore as at June 30, 2013.
The EBIDTA margin of the segment at 6.7% for the quarter April-June 2013 reflects relative job mix, dominated by international projects under execution during the quarter.
Power Segment
Power Segment achieved Customer Revenue of ' 1275 crore for the quarter ended June 30, 2013 registering a y-o-y decline of 44% due to lower order book.
Despite the slowdown in the power sector delaying award of large orders, the businesses of the Power Segment secured fresh orders of ' 628 crore, during the quarter ended June 30, 2013.
The Order Book of the Segment is ' 16899 crore as at June 30, 2013.
The EBIDTA margin of the segment stood at 8.6% for the quarter April-June 2013 vis-a-vis 7.4% recorded in the corresponding quarter of the previous year.
Metallurgical & Material Handling (MMH) Segment
The Customer Revenue of MMH Segment during the quarter ended June 30, 2013 at ' 1026 crore recorded y-o-y decline of 17% on account of reduced opening order book.
Minerals and metals industry, which is the customer base for MMH Segment, is constrained by multiple sectoral challenges. Notwithstanding adverse business environment, MMH Segment secured fresh orders of ' 825 crore, during the quarter ended June 30, 2013.
The Order Book of the Segment is ' 15499 crore as at June 30, 2013.
The EBIDTA margin of the segment improved to 16.0% for the quarter April-June 2013 vis-a-vis 13.0% recorded in the corresponding quarter of the previous year driven by favourable job mix.
Heavy Engineering Segment
Heavy Engineering Segment achieved Customer Revenue of ' 842 crore for the quarter ended June 30, 2013 registering a significant growth of 67% over the corresponding quarter of the previous year.
The businesses of the Heavy Engineering Segment secured fresh orders of ' 1321 crore, during the quarter ended June 30, 2013 recording a y-o-y growth of 16%. International
orders constituted 58% of the total order inflow of the segment.
The Order Book of the Segment is ' 8024 crore as at June 30, 2013.
During the quarter April-June 2013, the segment recorded EBIDTA margin at 13.4% as compared to 30.7% earned during the quarter April-June 2012, which included certain non-recurring items.
Electrical & Automation (E&A) Segment
E&A Segment recorded Customer Revenue of ' 730 crore for the quarter ended June 30, 2013, recording a minor growth due to depressed market conditions.
International sales contributed to 11.3% of the total segment revenue for the quarter.
Despite intense competition, the EBIDTA Margin of the E&A Segment was sustained at 11.9% for the quarter April-June 2013 on the back of lower commodity prices and operational efficiencies.
Machinery & Industrial Products (MIP) Segment
MIP Segment recorded Customer Revenue of ' 526 crore for the quarter ended June 30, 2013 registering a growth of 8% over the corresponding quarter of the previous year.
The Segment recorded EBIDTA Margin at 13.8% during the quarter ended June 30, 2013. The performance of the segment during the quarter was adversely affected due to industrial slowdown.
“Others” Segment
“Others” segment comprises Integrated Engineering Services (IES), Shipbuilding and Property Development business.
IES business clocked revenue of ' 332 crore during the quarter April-June 2013, registered a y-o-y growth of 12.5%. The EBIDTA margin of IES for the quarter stood at 29.9%. Negative contribution by the Shipbuilding business impacted the overall performance of the segment.
Outlook
Persisting macro concerns, currency volatility and attendant uncertainty in the financial markets is impacting the growth and investment sentiment of the Indian economy. The recent measures taken by the Government particularly in the areas of FDI, reduction in oil and power subsidy and for facilitating investment are expected to bear fruits in the medium term.
Resolution of long pending issues affecting the core sectors, specific measures to boost domestic manufacturing, increased resource allocation for infrastructure sector and further push on next generation reforms are necessary to provide the much needed impetus for investment and growth in India.
On the international front, the Company continues to focus on good prospects in various countries in the Middle East and select markets in CIS region, Africa & South Asia.
With a healthy order book, strong balance sheet, wide ranging capabilities and international presence, the Company is optimistic about its prospects as both the Indian and global economies work towards their recovery.
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