L & T Order-Book Position Up 33.10% In 2000-01

ECC major Larsen & Toubro (L&T) has left behind its recessionary travails what with an increased order book of Rs 7,201 crore in 2000-01. Order bookings rose significantly by Rs 1,791 crore or 33.10 per cent over Rs 5,410 crore in the previous fiscal.

The major orders booked for the year aggregated Rs 3,478 crore, up from Rs 1,842 crore the previous year. The company has booked orders for Rs 1451 crore power projects, Rs 1071 crore road widening and flyover projects and Rs 956 crore for construction and engineering projects.

During the year the company bagged a Rs 600 crore order for supply, erection & commission of 200 mw power plant for Dhofar Power Co, S.A.O.C Salalah, the Rs 430 crore construction of Delhi Metro underground railway corridor, supply of balance of plant, erection & commissioning of 445 mw power plant for Konaseema EPS Oakwell Power and the Rs 542 crore road widening project in Orissa.

The engineering and construction division, which contributes 59 per cent of L&T's product portfolio, registered a modest increased in sales in FY01. Sales at Rs 4,591 crore, rose by 5.47 per cent. The company had to adjust with market conditions on account of slowdown in economy.

Operating margins for the engineering division declined to 11.6 per cent in FY 01 from 12.7 per cent in the previous year. As a result, operating profits declined by 3.67 per cent.

L&T, however, enjoyed the revival of cement prices after November 2000. The share of cement division in the total business mix rose 28 per cent from 26 per cent. The better price remuneration not only increased the cement sales by 13.38 per cent but it improved operating margins to 17.1 per cent from 12.6 per cent in the previous fiscal.

The electrical division registered a 11 per cent rise in sales at Rs 701. However, sluggish market condition hit margins. The operating profit margins declined to 16.4 per cent from Rs 17.7 per cent in FY 00. There was major increased in order booking which was placed at Rs 693 crore in FY01 compared to Rs 635 crore in FY00.