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Company Analysis

L&T: right place, right time (Live mint.com 29th Jan 2008)Engineering and construction company Larsen and Toubro Ltd (L&T) has been reporting new order wins with unfailing regularity for several months now.
During the quarter ended December, the company saw a 37% rise in its order inflow compared with the year-ago period, which is even better than the 26% rise during the September quarter. The order book at the end of the December quarter was Rs50,000 crore—more than two years’ revenues.
The high revenue visibility, its ability to pick and choose its projects and its position at the cutting edge of the infrastructure boom have all helped L&T become a proxy for infrastructure growth in the country. That should help cushion the stock in the current downturn.
L&T’s results for the December quarter confirm the optimism. The momentum has been maintained, with gross sales and service revenues up 54% over the corresponding period of the previous fiscal year. Profit growth has been more muted, with net profit up 40%. That’s because operating margins were lower, at 10.8% versus 11.1% in the same quarter of the previous year. More
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