Business Daily from THE HINDU group of publications
Thursday, Jan 24, 2008
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Business Daily from THE HINDU group of publications Thursday, Jan 24, 2008 ePaper | Mobile/PDA Version |
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Stocks Corporate - New Business
BL Research Bureau Larsen & Toubro’s export segment appears to be on a roll what with the company rapidly augmenting the proportion of overseas orders. Larsen & Toubro on Wednesday announced the bagging of orders worth Rs 1,057 crore in the West Asian region, a significant part of the projects being in the power transmission and distribution space. Over the last one month, the company has announced the bagging of three significant export orders amidst international competition, adding up to over Rs 3,000 crore. The West Asian and African countries offer huge opportunities in the transmission and distribution space, even as these countries are incurring first time/replacement capital expenditure in this sector. These regions also provide attractive returns. The expanding profit margins of Larsen & Toubro reflect the benefit derived from overseas orders. Interestingly, the contribution of exports to L&T’s standalone revenues has grown from 4 per cent to 17.5 per cent over the last five years. The current pace of addition to export orders suggests that the company may well reach the targeted 25 per cent contribution by financial year 2009. We expect such augmentation in overseas orders to not only insulate the company against any domestic slowdown but also lead to a volume-driven expansion in profit margins given the large ticket size of overseas orders. More Stories on : Stocks | New Business | Engineering | Larsen & Toubro Ltd
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