LARSEN AND TOUBRO TURNS OUT EXCELLENT PERFORMANCE IN FY 10

Larsen & Toubro Limited

2008-2009 VS 2009-2010 (Annual)

REVIEW

Larsen & Toubro has produced excellent results for FY 2010 compared to the previous year of FY 09. The consolidated, non-consolidated and Quarterly figures comparison is available below :

CONSOLIDATED REVIEW :

Net sales has increased from Rs.40187 Cr in FY 09 to Rs. 43513.58 Cr in FY 10.

Total expenditure has also increased from Rs. 36249.54 Cr in FY 09 to Rs. 38510.43 Cr in FY 10

Consolidated Net Profit  has gone up from Rs. 3789.46 Cr in FY 09  To Rs.5450.74 CR in FY 10.

The consolidated Basic EPS has climbed smartly from Rs.51.58 to Rs.89.61 YOY, a stupendous rise of Rs.38.03 YOY, or a jump of 73.73 percent YOY.

NON-CONSOLIDATED REVIEW :

A review of the non-consolidated figures presents a similar rise in net sales and net profits YOY.

Net Sales  has risen to Rs.36675.15 Cr  in FY 10 from Rs.33646.57 Cr.in FY 09.

Net Profit has also risen to Rs.  4375.52 Cr in FY 10 from Rs. 3481.66 Cr in FY 09.

Basic EPS  has risen to Rs. 71.49 in FY 10 from Rs.46.3 in FY 09.

QUARTERLY RESULTS REVIEW :

Basic EPS  in the last 5 Quarters indicates that the 4^th Quarter has registered a smart rise in  Basic EPS to the level of Rs. 23.9 from 12.72 in preceding qtr. Net Sales also shows a significant rise in 4 th Quarter.

The company has increased the Dividend (%) to               625% in FY 10 compared to 525% in FY 09 – on a face value of Rs.2 per share.

Based on the consolidated EPS of 89.61 and the price on 17.05.2010 of Rs.1615, the PE ratio works out to 18.02. On Non-consolidated results, (on EPS of 71.49), the same works out to 22.59.

The main point of the result is – whether the level of sales and profits of the 4^th quarter will continue in future. Judging from the bulging order book and further orders being procured in FY11, it is felt that L&T can improve the performance in FY 11 further –even though the company had talked of severe Chinese competition in some business lines.

The company says - This growth in Ebitda margin is due to the low commodity prices for the major part of the last year. As commodity prices are now rising, it will be a challenge to maintain these margins. We are trying to see if we can order material even before the order is received. We also have to watch the prices of steel, but we are trying to make up for it by cost reduction and operational efficiencies. We have to work smart to maintain our margins.”

The company says that the outlook for the year ahead is good with increased spending on infrastructure.

Audited, Cumulative, Consolidated FIGURES

FY 09 (Rs. in lakhs)           Description        FY 10(Rs. in lakhs)

4018700                Net Sales :: 4351358

29287                    Other Operating Income :: 45622

-23434                   Increase/Decrease in SIT &WIP ::             48773

1668941                Raw Materials  :: 1619178

164452                  Purchase of traded goods            153095

266604                  Employees Cost  ::           306583

72832                    Depreciation :: 97932

1475559                Other Expenditure :: 1625482

3624954                Total Expenditure C :: 3851043

57537                    Other Income ::                75963

46196                    Interest                :: 69192

-1659                     Exceptional items ::        -181827

436033                  P B T ::   734535

142567                  Tax Expense :: 203875

293466                  P A T ::  530660

-77246                   Extraordinary Items ::    -13572

370712                  Net Profit :: 544232

-3144                     Minority Interest :: -10595

-5090                     Shares of Associates ::   9753

378946  Consolidated Net Profit :: 545074

-              Dividend (%)     -

2              Face Value (in Rs.)          2

11714    Paid-up Equity :: 12044

1383845 :: Reserves ::     2081492

51.58     Basic EPS :: (in Rs.) ::       89.61

50.87     Diluted EPS (in Rs.) ::     87.92

NON-CONSOLIDATED ANNUAL FIGURES

COMPARISON

2008-09 VS 2009-10

Description        FY 10(Rs. in lakhs):: FY 09( lakhs)

Net Sales :: 3667515  ::   3364657

Other Operating Income :: 35965 :: 27980

Increase/Decrease in sit & WIP :: 42299 :: -10511

 Raw Materials  :: 1533238 :: 1522455

Purchase of traded goods :: 157428 ::      167869

Employees Cost :: 237914 :: 199802

Depreciation :: 41460 :: 30599

Other Expenditure :: 1251046 :: 1127338

Total Expenditure :: 3263385 ::   3037552

Other Income :: 91025 :: 73978

Interest :: 50531 :: 35022

Exceptional items :: -107478 ::   -

P B T ::  588067  :: 394041

Tax Expense :: 164087 ::                123121

P A T ::  423980  :: 270920

Extraordinary Items :: -13572 :: -77246

Net Profit (+) ::  437552 :: 348166

Dividend (%) ::  625 ::     525

Face Value (in Rs.) ::       2 ::          2

Paid-up Equity :: 12044  :: 11714

Reserves ::  1814282 ::    1231796

Basic EPS ::  (in Rs.) :: 71.49 ::      46.3

Diluted EPS (in Rs.) :: 70.15 ::      45.68

QUARTERLY RESULTS COMPARISON

Q.E :: 31-03-10 :: 31-12-09 :: 30-09-09 :: 30-06-09 :: 31-03-09

Net Sales ::1337489 :: 807137 :: 786618 :: 736271 :: 1046898

Other Operating Income :: 21021 :: 5079 :: 5266 :: 4558 :: 13618

 Raw Materials :: 623801 :: 312903  ::  317756  ::  276581  ::  448072

Net Profit  ::  143810  ::  75882  ::  58040  ::  159820  ::  99852

Dividend (%)     625         -              -              -              525

Basic EPS  ::  23.9  ::  12.72  ::  9.9  ::  27.28  ::  17.05

Diluted EPS:: 23.44  ::  12.48  ::  9.7  ::  26.83  ::  17.04

ANNOUNCEMENTS TO THE EXCHANGE

 

17-05-2010          Larsen & Toubro Limited has informed the Exchange regarding a press release dated May 17, 2010 , titled "Performance for the Quarter ended March 31, 2010; Profit After Tax grows 44%, Sales up by 28%.".

17-05-2010          Larsen & Toubro Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 4351358 lacs for year ending on 31-MAR-2010 against Rs. 4018700 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 545074 lacs for the year ending on 31-MAR-2010 against Rs. 378946 lacs for the year ending on 31-MAR-2009.             -

17-05-2010          Larsen & Toubro Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Net Sales of Rs. 3667515 lacs for year ending on 31-MAR-2010 against Rs. 3364657 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 437552 lacs for the year ending on 31-MAR-2010 against Rs. 348166 lacs for the year ending on 31-MAR-2009.            -

17-05-2010          Larsen & Toubro Limited has informed the Exchange that the Board of Directors at its meeting held on May 17, 2010 have recommended a Dividend of Rs. 12.50/- per share (Previous year Rs. 10.50/- per share).        -

17-05-2010          Larsen & Toubro Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Net Sales of Rs. 1337489 lacs for quarter ending on 31-MAR-2010 against Rs. 1046898 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 143810 lacs for the quarter ending on 31-MAR-2010 against Rs. 99852 lacs for the quarter ending on 31-MAR-2009.