Larsen & Toubro (L&T) reported strong Q4 numbers marked by a 28% and 17% YoY growth in its revenues and earnings respectively. An order inflow of Rs220.6bn in the Engineering and Construction (E&C) segment was also a key highlight of the quarter. For FY11, L&T has indicated a ~20% revenue growth supported by an order backlog of Rs 1.0tn. Margins, however, are likely to moderate due to higher commodity prices. L&T intends to achieve a robust growth of 25% in order inflows during FY11. It also proposes to unlock value from its financial services business in H2FY11, with software and asset development arms next in line, possibly in FY12/FY13.
L&T expects to achieve a ~20% revenue growth in FY11, supported by an order backlog of Rs 1.0 trillion. Average execution period of the order backlog has risen to over 30 months as power equipment orders won in FY10) are of longer gestation. L&T is targeting to
achieve Rs870bn of order inflows, up 25% YoY, in FY11.
L&T is planning to unlock value of its finance subsidiaries through private equity investment, merger or public listing, in that order. Over FY11, L&T plans to take the asset size of its financial services subsidiaries from Rs 120bn to over Rs 190bn. L&T will also
look to unlock value of L&T Infotech and L&T IDPL in FY12 or later, depending on the ramp up of these businesses.