Submitted by: Group 1

Aleeva Goyari PGP09184

Ankush Verma PGP09185

Jeevan Dese Rathod PGP09186

Rahul Arora PGP09221

Sagar Rathee PGP09227

Swadheen Jain PGP09241

Submitted to:
Dr. Mahua Guha Dr. Rogers P. Joseph
 L&T : Overview
Larsen and Toubro, India’s leading construction
company with a strong technology backbone

Founded in 1938, L&T has its headquarters at

Mumbai, Maharashtra

L&T has an international presence with a global

spread of offices
L&T
L&T ranked among Asia’s Top 5 most
sustainable companies

Finance Engineering

L&T India
L & T finance
Infrastructure Infrastructure
Limited
Finance Developers

L & T Investement L &T Mutual Fund

L & T Investment L& T Mutual
Management Limited
Limited Trustee Limited
Limited

www.presentationgo.com
Group 1 : Section D
 L&T

Subsidiaries Verticals

L&T InfoTech L&D IDPL Power Hydrocarbons

L&T Power L&T Financial Mechanical &

services Switchgear
Development Products

Heavy
L&T Metro Infrastructure
Engineering
Rail

Building Minerals

Metal &
Electrical

www.presentationgo.com
Group 1 : Section D
 L&T : History
Founded in 1938 by two
Danish engineers,
Henning Holck- Larsen and
Soren Kristian Toubro

L&T became a private

The company began as
company in 1946. It
a representative of
then became a public
Danish manufacturers
Company I the year
of dairy equipment
1950

Both of them were

strongly committed to
The war time need for
developing India's
ship repairs offered
engineering capabilities
L&T an opportunity
to meet the demands
of industry

www.presentationgo.com
Group 1 : Section D
 L&T : History
Today L&T is
one of the
India’s biggest
known
industrial
Company’s organization
L&T became a subsidiary with a
Incorporation public Engineering reputation for
of Engineering company with Became one of Faridabad Construction high quality
Corporation a sales the top 25 factory Company was technological
Company
(ECC) 1946
turnover of
10.9 million 1962 Indian
companies 1976 became
operative. 1978 merged with
the company 1999 excellence and
quality

Larsen and S.K Toubro In1976, Holck- Holck-Larsen A M Naik

1973 1977 Present
1944 Toubro Private
Limited was
1950 retired from
the
Larsen was
awarded the
retired as
chairman
1982 became CEO:
He was
born management Magsaysay awarded
Award in Padma
recognition Bhushan in
of his 2009
contribution
to India's
industrial
development

www.presentationgo.com
Group 1 : Section D
 Porter’s five forces
Supplier’s Competition
bargaining power • Competition is high
• Technical collaboration
• High bargaining power of
of other competitors
supplier
enhances competition
• Suppliers are fragmented
and difficult to manage
• Maintaining Supply chain
is costly
Substitute
Threat 3 No perfect Substitute.
• Low threat of new
entrant
2 4
• High capital
Requirement
Porter Buyer’s
• Lack of knowledge and
Experience Bargaining
• Access to market 1 five 5
Power
forces • Bargaining buyer of Buyer is
moderate
• Buyers have less choice

www.presentationgo.com
Group 1 : Section D
 Core Competencies
Asia‘s largest yards at
Hazira, capable of • Cement and Mineral
manufacturing several Process
modules • Chemical Engineering
• Online
simultaneously • Material Science and
procurement Corrosion Engineering
• One of the first • E-business platform
companies in the • Mechanical Engineering • Power
world to implement • Ocean Engineering and • Oil & gas exploration
the Enterprise Water Technology • Refinery
Resource Planning • . • Fertilizer and
Modular
(ERP) Procurement Fabrication petrochemicals
Process
• Integrates all the • Airports
Technology
execution processes • Townships
for the project from • Hotels
Project
proposal to project Construction • Public buildings,
Management
handing over bridges
• Transmission lines
• Water treatment
plants
Core • Hydro-electric power
Competency stations

www.presentationgo.com
Group 1 : Section D
 SWOT Analysis
STRENGTHS
• Strong brand name in construction and manufacturing
• Strong technical expertise
• Market Leadership providing competitive advantage
• Strong management
• Large number of products
• Diversified revenue enables to elevate its business risk

WEAKNESSES
• Dependence on domestic Market: contributes over 65% of the
revenues
• Increasing Debt in the form of loans: 98960 from FY2011 million to
STRENGTHS 136090 million in FY2016
• High customer concentration

WEAKNESSES OPPORTUNITIES
• Strategic joint ventures strengthening business
• Growing Indian construction and engineering industries(YOY 8%)
OPPORTUNITIES • Investment in Defense sector

THREATS
THREATS • Economic challenges in India could adversely impact the company’s
business
• GST impact can be negative
• Intense competition may reduce profitability

www.presentationgo.com
Group 1 : Section D
 L&T Income Statement Analysis

Operating
The Depreciation
Operating profit Net profit
company's charges and
income margins margins
operating finance costs
during the witnessed a Other income Net profit for during the
profit decreased by
year rose rise and up at grew by 5.1% the year grew year grew
increased by 18.6% YoY
9.5% on a 11.3% in YoY by 23.4% YoY from 5.9% in
21.9% YoY and 14.8%
year-on-year FY18 as FY17 to 6.6%
during the YoY,
(YoY) basis against 10.2% in FY18
fiscal respectively
in FY17

www.presentationgo.com
Group 1 : Section D
L&T Balance Sheet Analysis

The company's current liabilities during FY18 stood at Rs 773 billion as

compared to Rs 617 billion in FY17, thereby witnessing an increase of 25.1%

Long-term debt stood at Rs 729 billion as compared to Rs 673 billion during

FY17, a growth of 8.3%

Current assets rose 8% and stood at Rs 834 billion, while fixed assets rose 7%
and stood at Rs 320 billion in FY18

Overall, the total assets and liabilities for FY18 stood at Rs 2,451 billion as
against Rs 2,122 billion during FY17, thereby witnessing a growth of 15%

www.presentationgo.com
Group 1 : Section D
 L&T Cash Flow Statement Analysis
L&T's cash flow from
operating activities
(CFO) during FY18 stood Mar-17 Mar-18
at Rs -100 billion on a %
YoY basis Particulars (in (in Change
millions) millions)

Cash Flow from Operating -

66,553 -
Activities 100,310
Cash flow from investing
activities (CFI) during Cash Flow from Investing
FY18 stood at Rs 39 -97,959 39,145 -
Activities
billion on a YoY basis
Cash Flow from Financing
28,959 93,705 223.6%
Activities

Cash flow from financial Net Cash Flow -2,448 32,539 -

activities (CFF) during
FY18 stood at Rs 94
billion, an improvement
of 224% on a YoY basis

Overall, net cash flows

for the company during
FY18 stood at Rs 33
billion from the Rs -2
billion net cash flows
seen during FY17

www.presentationgo.com
Group 1 : Section D
 Ratio Analysis for L&T
Solvency Return on Equity
Ratio (ROE)

Interest Ratio Improved and

stood at 14.4%
Return on
Assets (ROA)
coverage RatioCo during FY18, from
Rose and stood at
Analysis 12.9% during FY18 Improved and stood
8.5x during FY18, at 3.9% during FY18,
from 3.7% during
from 7.5x during FY17
FY17

Profitability
Ratios Return on Capital
Employed (ROCE)
Current Ratio Improved and stood
at 9.9% during FY18,
from 8.4% during
Fall and stood at FY17 on Capital
Employed (ROCE):
1.1x during FY18,
from 1.2x during
FY17

www.presentationgo.com
Group 1 : Section D
 Competitive Analysis
Particulars/ Company Name L&T Hindalco Gammon Lanco ABB Ltd

Revenues 73495 43002 242.44 1631.58 6613

PAT 5387.3 1436.49 -1983 -889.53 510.8

Ratios

Operating Profit Margin 9.97% 11.97 -14.99% 6.46% 8.09%

Net Profit Margin % 7.23% 5.39% -217.92% -54.40% 4.62%

Current Ratio 1.32% 1.28% 1.05% 0.52% 1.38%

Interest Cover 5.77% 2.34 0.31% 0.14% 9.04%

Figures in Crores

www.presentationgo.com
Group 1 : Section D
 L&T : Future Strategy

Five year plan to double

Lakshya
revenue by 2021

Entry into Defence Diversifying

Sector and in the and Entry
emerging markets like into new
Africa markets

Acquiring
large Airports in Abu Dhabi,
Projects to Oman and Stadium in
earn better West Indies
revenues

www.presentationgo.com
Group 1 : Section D
 Thank You

www.presentationgo.com
Group 1 : Section D