R. Shankar Raman, Whole-time Director & CFO, Larsen & Toubro Limited is a qualified Chartered Accountant and a Graduate of the Institute of Cost & Works Accountants of India. Over the past 29 years, Mr. Shankar Raman has worked for leading listed corporates in varied capacities in the field of finance. R. Shankar Raman was appointed as Chief Financial Officer of L&T on September 6, 2011, and subsequently elevated to the Board on October 1, 2011.Shankar Raman is also on the Board of Management of several companies including international subsidiaries within the L&T Group.
Larsen &Toubro Limited. is a US$11.7bn technology, engineering, construction,manufacturing and financial services conglomerate, with global operations. Itis one of the largest and most respected companies in India’s privatesector. A strong, customer – focused approach and the constant quest fortop-class quality have enabled L&T to attain and sustain leadership in itsmajor lines of business for over seven decades.
Yash Ved of IIFL provides the highlights of a media interaction where R. Shankar Raman said, "Next few months could witness renewed focus on economic reforms for improving the investment climate in the country.”
How do you see order inflows in the coming quarters?
We are expecting better order inflows in the coming quarters.
There has been a robust growth in revenues on the back of a healthy order book and good progress in execution of various projects.
Order inflows stood at Rs 195.94bn, recording an impressive year-on-year growth of 21% despite weak investment sentiment and prevailing global uncertainties.
Major orders came from Infrastructure, Building & Factories, Power Transmission and Power Distribution sectors.
In this quarter, we have received larger projects from the private sector. We are expecting better orders from the Government space as well.
Brief us about your financials?
Larsen & Toubro Ltd. (L&T) has announced unaudited financial results for the quarter ended June 30, 2012.
The Company has posted a profit after tax (PAT) of Rs. 8.64bn for the quarter ended June 30, 2012 compared to Rs. 7.46bn for the same quarter last year.
Net sales for the period under review stood at Rs. 119.60bn versus Rs. 94.80bn in the year-ago period.
Total income has increased from Rs. 97.52bn to Rs. 125.61bn in the quarter ended June 30, 2012.
The Earnings Per Share (EPS) for the reporting quarter stood at Rs. 14 versus Rs. 12.10 in the same quarter a year earlier.
Comment on your capex for FY13?
We are planning to invest Rs15bn in FY13. We have spent about Rs2bn in the first quarter.
What is your current order book position?
Our current order book position stands at Rs 1,53,095 crore.
What is the current cash level?
We have cash of about Rs50-60bn.
What are your plans for international operations?
On the international front, select markets in the Middle East, South East Asia and CIS countries hold promise, where the Company is strengthening its presence.
This quarter, we have bagged orders from the Middle East and Africa regions.
In the coming quarter, we expect to receive more orders from the Gulf region.
What is your revenue mix?
About 92% of our revenues come from the domestic market and the remaining 8% come from the international market.
Brief us about your revenues in terms of segments?
About 86% of our revenue comes from the Engineering & Construction segment, 2% from Hydrocarbons segment, 8% from Process segment and remaining 4% from Others category.
What is your outlook for the coming quarter?
Delayed policy measures, slowdown in industrial production, elevated interest rates and liquidity concerns have moderated the growth prospects of the Indian economy. This, together with the uncertainties in the global markets, has impacted the investment sentiment, thereby restricting the business opportunities for the Capital Goods industry.
Going forward, the ensuing months could witness renewed focus on economic reforms for improving the investment climate in the country and to attract overseas capital inflows.
With its enhanced capacities and presence in the diverse sectors, the Company is in a good position to harness the opportunities as they emerge. The superior execution capabilities and growing order book provide visibility to sustained revenue growth in the medium term.