About
Larsen & Toubro Ltd
Larsen & Toubro Limited is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. The Company operate in over 50 countries worldwide. The Company is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. The Company's manufacturing footprint extends across eight countries in addition to India.
The company's Engineering, Construction & Contracts Division (ECCD) undertakes engineering, design and construction of infrastructure, buildings, factories, water supply, and metallurgical & material handling projects covering civil, mechanical, electrical and instrumentation engineering disciplines. Their Engineering & Construction Division designs, engineering and executes projects for hydrocarbon sector with front-end design. Its heavy engineering division is organized into two independent companies: Heavy Engineering Independent Company and Ship Building Independent Company. Their Electrical & Electronics division comprises Electrical and Automation Independent Company and Medical Equipment and Systems business.
L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint, with facilities in China and the Gulf region. The company's businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support.
Larsen & Toubro Ltd was incorporated in the year 1946 as a private limited company. Earlier, the company was established as a partnership firm founded by two Danish engineers Henning Holk Larsen with Soren Kristian Toubro im Mumbai. In December 1950, the company became a Public Company with a paid-up capital of Rs.2 million. They executed prestigious orders during this period which includes the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant.
During the year 1981-82, the company acquired 2 bulk shipping carriers from Japan. During the year 1983-84, they started one cement plant with capacity of 1 MTPA at Maharashtra. In the year 1997, the company formed a joint venture company with Deere Pvt Ltd to manufacture agricultural tractors namely L&T-John Deere Pvt Ltd. In April 1, 2003, the company transferred their cement business to Ultra Tech Cement Ltd.
The company received a host of awards, medals and trophies for their continuous efforts. They received Environmental Excellence Gold award from Greentech Foundation during the years 2003-04 and 2004-05. Engineering Export Promotion Council (EEPC) offered a trophy for high exports. The Ministry of Power conferred the first prize in National Energy Conservation for the year 2005.
In July 2005, the company approved the divestment of their stake in L&T-John Deere Pvt Ltd. In August 2005, the company entered into a MoU with DatarSwitchgear Ltd (DSL) to merger the company with L&T. As on October 2005, the company totally exited from the packaging business by sale of their Glass Containers Business to ACE Glass. In the year 2006, the company amalgamated two of their own folds, the L&T Power Investments Pvt Ltd (LTPL) amalgamated with India Infrastructure Developers Ltd (IIDL).
During the year 2006-07, A Wall Street Journal survey featured L & T among Asia's 'Most Admired Companies' and ranked the company No.1 for quality of products and for overall reputation. In April 2007, the company and theirs associate Audco India Ltd (AIL) invested Rs 35 crore in the Coimbatore (TN) switchboard and valve unit. Larsen & Toubro made a tie up with Japan's Toshiba Corporation and Mitsubishi Heavy Industries for setting up manufacturing facilities for super-critical turbines and boilers used in coal-fired power generation plants.
During the year 2008-09, the company transferred their entire 100% stake in L&T Infrastructure Finance Company Ltd, L&T Finance Ltd and India Infrastructure Developers Ltd to L&T Capital Holdings Ltd (LTCHL). In March 31, 2009, the company acquired 50% stake in L&T-Demag Plastics Machinery Ltd from the joint venture partner Sumitomo (SHI) Demag Plastics Machinery GmbH. Accordingly, L&T-Demag Plastics Machinery Ltd became a wholly owned subsidiary of the company with effect from March 31, 2009.
In April 2010, the company and Rolls-Royce, the global power systems company, signed an MoU for cooperation to effectively address the projected need for light water reactors in India and internationally. Also, the company won a critical offshore platform contract from Gujarat State Petroleum Corporation (GSPC) valued at Rs 1060 crore. In May 2010, the company and Howden signed a joint venture to design, engineer, manufacture and supply axial fans and air preheaters to Indian thermal power plants ranging between 100 MW to 1200 MW. The joint venture will invest around Rs 100 crore for setting up of the industrial facility and related infrastructure. The manufacturing unit will be setup in Hazira, Gujarat.
In June 2010, the company secured orders aggregating Rs 747 crore from various customers like Coal India, Indiabulls Power Ltd and Hindalco Industries Ltd. Also, they secured orders aggregating to Rs 1440 crore for the construction of residential towers, township and factory building. The Thermal Power Plant Construction business unit secured two orders aggregating Rs 827 crore from GVK Power for their Gautami Combined Cycle Power Plant Expansion and from SEPCO-I for Talwandi Sabo Power Plant in Punjab.
In July 2010, the company won an offshore rig refurbishment contract from Oil and Natural Gas Corporation valued at Rs 376 crore. In August 2010, the company's Building & Factories Operating Company (B&F-OC), secured orders aggregating to Rs 10.25 billion for the construction of two hospital building, residential projects in Mumbai and a cement plant from a major cement manufacturer. Also, the company received two projects worth Rs 1195 crore from ONGC to set up additional processing units at its gas processing complexes at Hazira and Uran. In September 2010, the company and Befula Investments (South Africa) signed a shareholders agreement to incorporate Larsen & Toubro T&D SA (Pty) Ltd in South Africa to capitalize on the power transmission and distribution opportunities in South Africa.
In October 2010, the company received an order valued at Rs 1449 crore from DB Power Ltd promoted by the Bhaskar Group. In December 2010, they secured two orders amounting Rs 415 crore from Hindalco and Sepco-I. The Hindalco order worth Rs 253 crores is for carrying out structural steel works for the 6x150 MW captive power plant in Orissa. The Sepco-I order valued at Rs 162 crore is for the erection of boilers for their 2x660 MW Talwandi Sabo Power plant, developed by Sterlite Energy Ltd in Punjab.
In January 2011, the company secured orders aggregating Rs 1103 crore from various power plant developers for construction of merry go round systems, construction of dedicated railway lines to link power plant sites to the main line rail network. The company and Kobe Steel Ltd entered into a joint venture (JV) for the manufacture of internal mixers and twin screw rollerhead extruders for the tyre & rubber industry for global markets, including India. The JV aims to provide customers with products for the tyre industry. In February 2011, the company secured an order valued over Rs 1,100 crore from Gujarat State Electricity Corporation Ltd (GSECL), a government of Gujarat company, to set up a 1 x 375 MW gas based power plant at Dhuvaran, near Baroda in Gujarat, on EPC basis.
In May 2011, the company received an order valued over Rs 3500 crore from PPN Power Generating Company Ltd based in Chennai, for setting up a 3 x 360 MW gas based power plant at Village Pillaiperumalnallur in Nagpattinam District of Tamil Nadu State, on EPC basis. They won a process platform contract from Gujarat State Corporation (GSPC) valued at Rs 14.50 billion. In July 2011, the company bagged a major international EPC order valued at Rs 1210 crore from Qatar General Electricity & Water Corporation (KAHRAMAA) for supply and construction of thirteen extra high voltage (EHV) substations in Qatar.
In August 2011, the company bagged international orders valued at USD 889 million in the hydrocarbon sector. One order is from Abu Dhabi Gas Industries Limited (GASCO) for its Habshan-Ruwais-Shuweihat (52'/48' dia) Gas Pipeline Project. Valued at around USD 189 million, it involves EPC installation & commissioning of 123 KM of the pipeline to be commissioned in 24 to 26 months. The other order is a USD 450 million EPCI project awarded to L&T Hydrocarbon's Upstream Business Group from ADMA-OPCO, a subsidiary of ADNOC and a major producer of Oil & Gas for the UAE.
In August 2011, the company secured new orders worth Rs 1340 crore in the Building & Factories segment for the construction of commercial & residential buildings including add-on orders from ongoing projects. In September 2011, they received a project order valued around Rs 700 crore from the Petroleum Development Oman LLC (PDO). The order is for setting up a green field project planned to treat an average of 3 MMSCMD of gas. In November 2011, they bagged new orders worth Rs 1629 crore in the building and factories segment.
In December 2011, the company bagged a major order valued at Rs 21.64 billion in their Infrastructure Segment from GMR Infrastructure. The order is for construction of stretches consisting of six laning of Kishangarh Udaipur Ahmedabad Highway. The development would be executed on EPC (Engineering, Procurement & Construction) basis.
In 2012 Larsen and Toubro's financial arm L&T Finance Holdings Limited (LTFH) has entered into the housing finance business by acquiring Indo Pacific Housing Finance Ltd (IPHF), a small sized housing finance company. Larsen & Toubro (L&T) also bagged Rs 1,937 crore order for 4-laning of a major portion of Shivpuri-Dewas section of NH-3 in Madhya Pradesh from GVK Group. The company and Samsung Techwin have joined hands to cooperate in the Indian Army's Tracked Self Propelled Artillery programme. L&T and Nexter Systems join hands for Indian army artillery programme. L&T Joint Venture firm bags contract from Sadara Chemical Company. L&T Construction Secures Orders Valued at over Rs 2592 Crore, Rs 2040 crores and Rs 2008 crore from various business segments. L&T Wins Rs. 749 Crore Contract from ONGC for 4 Wellhead Platforms. L&T Wins Prestigious Order for Manufacture of Cryostat for International Fusion Energy Project. L&T led Joint Venture wins Rs. 1252 Cr Delhi Metro Contract. Larsen & Toubro bags $250mn EPC contract in Ras Laffan, Qatar. L&T bags Rs 781 cr contract from ONGC
In 2013 L&T Completes Acquisition of Audco India Ltd. L&T IDPL bags Rs. 1293 crore road project in Odisha. L&T Group Company Wins Saudi Aramco Contract. L&T Ranked Asia's 2nd Most Sustainable Company in Industrial Sector. L&T Technology Services Wins Frost & Sullivan Excellence Award. L&T Wins Golden Peacock Award for Excellence in Corporate Governance. L&T Power Wins National Energy Conservation Award. L&T Wins ICICI Foundation-CNBC TV 18 Inclusive India' Award. L&T Construction also Wins Rs.1630 Crores Expressway Project in Uttar Pradesh. L&T Wins Saudi Aramco Contract. L&T Wins Rs 5100 Crore Supercritical Power Plant Order from MP State Utility. L&T Construction Wins Rs. 4510 Crs Doha Metro Project
In 2015 L&T Won Golden Peacock Award for Risk Management', Award for Excellence in Power Project Execution from the Central Board and Good Corporate Citizen Award. L&T Construction Commissions India's first 765kV Gas Insulated Substation. L&T secures Rs 5,580 cr power plant order from NTPC. L&T also Signs MoU with AREVA for Jaitapur Nuclear Power Project. L&T opens new service centre in Nagpur.
At the time of announcement of Q4 March 2015 results on 30 May 2015, L&T said that the company's consolidated order inflow surged 39% on year-on-year basis at Rs 47582 crore in Q4 March 2015. On 3 July 2015, L&T announced that it has successfully flagged off India's first Nuclear 700 MWe Steam Generator for Kakrapar nuclear power plant in Gujarat. At the time of announcement of Q1 June 2015 results on 31 July 2015, L&T said that the company won new orders worth Rs 26376 crore at consolidated level in Q1 June 2015.
On 21 September 2015, Larsen & Toubro announced that it has sold 8.52 crore equity shares of its subsidiary L&T Finance Holdings representing 4.95% stake in the company on the National Stock Exchange at Rs 70 per share. At the time of announcement of Q2 September 2015 results on 30 October 2015, L&T said that the company won new orders worth Rs 28620 crore at consolidated level in Q2 September 2015.
On 9 November 2015, Larsen & Toubro announced that it has entered into an in-principle agreement for strategic sale of Kattupalli port in Tamil Nadu to Adani Kattupalli Ports Private Limited (AKPPL), a subsidiary of Adani Ports and Special Economic Zone (APSEZ). At the time of announcement of Q3 December 2015 results on 29 January 2016, L&T said that the company won new orders worth Rs 38528 crore at consolidated level in Q3 December 2015.
On 25 February 2016, L&T announced that its fully-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has signed a long-term agreement with McDermott International focused on subsea projects in deepwater segment emerging on the east coast of India. Under the agreement, LTHE and McDermott will develop a cost-effective approach which will utilize LTHE's state-of-the-art, strategically located Kattupalli facility near Chennai. It will be used for fabrication and setting up of a local spool base in India.
On 31 March 2016, L&T announced that it has sold its entire 89% stake in L&T Infocity Limited to Ace Urban Developers for total consideration of Rs 191 crore. L&T had promoted L&T Infocity Limited as a special purpose vehicle (SPV) in 1997 in partnership with Andhra Pradesh Infrastructure Investment Corporation to develop IT infrastructure in Andhra Pradesh. At the time of announcement of Q4 March 2016 results on 25 May 2016, L&T said that the company won new orders worth Rs 43334 crore at consolidated level in Q4 March 2016.
On 31 May 2016, L&T's wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) announced a teaming agreement with Parsons Corporation to provide engineering and design solutions for onshore and offshore projects across the hydrocarbon, fertilizer, chemicals, and modular plant sectors. On 15 July 2016, L&T announced that it has decided to participate in the offer for sale of equity shares by way of initial public offering by its subsidiary L&T Technology Services. L&T proposes to sell up to 15% of the equity shares held in L&T Technology Services through the offer.
At the time of announcement of Q1 June 2016 results on 29 July 2016, L&T said that the company's consolidated order inflow rose 14% on year-on-year basis at Rs 29702 crore in Q1 June 2016. On 26 August 2016, L&T Group Chairman A.M. Naik said at the 71st Annual General Meeting of the company that L&T plans to achieve revenue of Rs 2 lakh crore (USD 30 billion at the prevailing exchange rates) by 2021 without compromising on profit margins and achieving an order inflow in excess of Rs 2.5 lakh crore per annum.
On 22 September 2016, Larsen & Toubro announced that it has won an order worth USD 99.7 million from Vietnam Border Guard for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. It is the biggest export order given to a private Indian Shipyard till date.
On 4 October 2016, Larsen & Toubro announced that it has achieved synchronisation of the first 660 MW supercritical unit (Unit-5) of the 2x660 MW supercritical thermal power project at Chhabra in Rajasthan in record time of 42 months and four days from the date of Notice to Proceed.
On 14 October 2016, L&T announced that a consortium of the company and Sojitz Corp., Japan has won a major order worth Rs 3799 crore from the Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL). This Design and Build Integrated Package involves the construction of Civil (Embankment, Structure, Tunnel), Track Works, Overhead Electrification, Traction Substations and Signaling & Telecommunication Works for double line electrified tracks with 2x25 kV AC, high rise Overhead Catenary System capable of operating at a maximum train speed of 100 Km/h, from Rewari to Dadri (128 Km).
On 20 October 2016, L&T announced the signing of a formal contract with the Department of Information & Technology, Maharashtra Government, under which Nagpur will be converted into the country's first large-scale integrated Smart City.
L&T-MHPS Boilers Private Limited (LMB), a joint venture of Larsen & Toubro Limited (L&T) and Mitsubishi Hitachi Power Systems Limited (MHPS), Japan, signed a Technology Licence Agreement with MHPS on 7 November 2016 for Selective Catalytic Reduction (SCR) systems. The technology licensing agreement is for design, engineering, manufacture, installation, commissioning, and sale of new boilers under BTG, EPC or SG packages or standalone SCR systems, and for existing and under construction boilers on exclusive basis in India.
On 8 November 2016, L&T announced that it has signed a long-term technical licence agreement with Chiyoda Corporation, Japan for its Flue Gas Desulphurisation (FGD) technology. The agreement grants L&T exclusive rights to undertake EPC of CT-121TM FGD Systems. At the time of announcement of Q2 September 2016 results on 22 November 2016, L&T said that the company's consolidated order inflow rose 11% on year-on-year basis at Rs 31119 crore in Q2 September 2016.
On 2 January 2017, L&T announced that it has bagged a project from Pune Municipal Corporation to convert Pune into a smart city as a part of Government of India's Smart City Mission. On the same day, L&T announced that its fully owned subsidiary L&T Hydrocarbon Engineering in consortium with EMAS CHIYODA Subsea, has won two awards involving Engineering, Procurement, Construction and Installation contracts from Saudi Arabian oil giant and biggest oil company in world, Saudi Aramco.
On 13 February 2017, L&T announced that the company has formed a joint venture with MBDA, a world leader in missile systems, to develop and supply missiles and missile systems to meet the growing potential requirements of the Indian armed forces. L&T will own 51% of the new joint venture company with MBDA owning the remaining 49% stake.
On 25 February 2017, L&T announced that its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has bagged an onshore EPC contract worth around Rs 1100 crore from Indian Oil Corporation Limited (IOCL) for setting up a 0.740 MMTPA Fluidised Cracking Unit (FCC) including LPG Treatment Facility at IOCL's Bongaigaon refinery in Assam.
On 28 February 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) has signed an Enterprise Framework Agreement (EFA) with Shell Global Solutions International B.V., for providing Engineering, Procurement and Construction Management (EPCM) services for Shell projects in the Middle East, South East Asia and India. The EFA is for a period of five years.
On 20 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has bagged an offshore contract valued at Rs 1656 crore for the Neelam Re-Development & B173AC Project from Oil & Natural Gas Corporation (ONGC). On 28 March 2017, L&T announced that the Buildings & Factories Business of L&T Construction has bagged a major design & build order worth Rs 2903 crore to re-develop Mumbai's century-old BDD Chawls for Maharashtra Housing and Area Development Authority (MHADA).
On 30 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited has bagged orders totalling close to Rs 4000 crore in the International market. On 7 April 2017, L&T announced that it has commissioned gas turbines in open cycle for two large gas-based power projects in Bangladesh in quick succession during March 2017.
On 21 April 2017, Larsen & Toubro and Hanwha Techwin (HTW) of South Korea signed a contract for execution of the 155mm/ 52 Cal Tracked Self Propelled (SP) gun program for the Indian Army. On 12 May 2017, Larsen & Toubro announced that it has won a contract worth Rs 4500 crore for supply of 100 units of 155mm/ 52 calibre Tracked Self-Propelled gun systems to the Indian Army. It is the largest private sector defence order for artillery guns.
On 26 May 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) has signed a Memorandum of Agreement (MOA) with Institute of Chemical Technology (ICT) to build ethanol plants based on the fully indigenous technology developed by ICT for producing Second Generation Ethanol.
At the time of announcement of Q4 March 2017 results on 29 May 2017, L&T said its consolidated order inflow rose 9.6% on year-on-year basis to Rs 47289 crore in Q4 March 2017. On 20 June 2017, Larsen & Toubro announced the launch of a Floating Dock (FDN-2) designed and built for the Indian Navy at the company's greenfield shipyard at Kattupalli, near Chennai. This marks a significant achievement for L&T's Shipbuilding arm in Design, Construction and Project Management of Defence Vessels.
At the time of announcement of Q1 June 2017 results on 28 July 2017, L&T said that the company won new orders worth Rs 26352 crore at consolidated level in Q1 June 2017 in a challenging business environment. On 2 August 2017, Larsen & Toubro announced the bagging of a Rs 3375-crore major breakthrough order from Metro Express Limited which is owned by the Government of Mauritius to design and build an Integrated Light Rail-based Urban Transit System in Mauritius. The project will be fully funded through a Government of India grant and Line of Credit.
On 16 August 2017, L&T announced that it entered into a definitive agreement for the divestment of its entire stake in its wholly-owned subsidiary L&T Cutting Tools Limited to IMC International Metalworking Companies B.V, a company owned by Berkshire Hathaway Inc., for a total consideration of Rs 174.04 crore.
On 2 September 2017, L&T announced that its subsidiary Infrastructure Development Projects Limited (L&T IDPL) has filed an application with Securities and Exchange Board of India for registration of its proposed infrastructure investment trust, named IndInfravit Trust.
On 3 October 2017, Larsen & Toubro announced that it has completed the purchase of the entire remaining 26% stake held by Airbus Defence and Space GmbH (earlier known as EADS Deutschland GmbH) in L&T Cassidian, a joint venture between Larsen & Toubro and Airbus Defence and Space GmbH.
At the time of announcement of Q2 September 2017 results on 11 November 2017, L&T said that the company won new orders worth Rs 28732 crore at consolidated level in Q2 September 2017 amidst subdued business environment, policy uncertainties and delayed implementation.
On 1 January 2018, L&T announced that its wholly owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured a major EPC contract for Crude Distillation and Vacuum Distillation Unit (CDU & VDU) from Hindustan Petroleum Corporation Limited, Visakhapatnam Refinery, and an extension to an ongoing contract for Reliance Industries Jamnagar, both adding to about Rs 2100 crore. On 2 January 2017, L&T announced that its construction division has won orders worth Rs 1454 crore across various business segments.
On 5 January 2018, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured an offshore contract for Bassein Development 3 Well Platform & Pipeline Project' from Oil & Natural Gas Corporation (ONGC). The order is valued at approximately Rs 1483 crore. On 8 January 2018, L&T announced the Transportation Infrastructure and Water & Effluent Treatment businesses of L&T Construction have jointly bagged three EPC orders worth Rs 2265 crore from Andhra Pradesh Capital Region Development Authority (APCRDA).
At the time of announcement of Q3 December 2017 results on 31 January 2018, L&T said its consolidated order inflow jumped 38% on year-on-year basis to Rs 48130 crore in Q3 December 2017. Consolidated order book of the group stood at Rs 270727 crore as on 31 December 2017. The international order book constituted 25% of the total order book.
The board of directors of the company at a meeting held on 31 January 2018 approved subscription to equity shares offered by its subsidiary L&T Finance Holdings (LTFH) on a preferential basis up to an amount not exceeding Rs 2000 crore, subject to necessary approvals, including the approval of board of directors and shareholders of LTFH. The exact amount of the subscription would depend on the preferential issue that LTFH would be making to L&T.
During the FY2019, the company repaid long-term borrowings of USD 233 million (approx.Rs 1610 crore including secured debentures of Rs 400 crore). On the other hand, the company raised USD 100 million of foreign currency borrowings and Rs 90 Crore of Rupee Term Loan as fresh unsecured long-term borrowings for meeting business requirements and certain capital expenditure.
As at 31March 2019, the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at Rs 12,174.29 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at Rs 7,934.32 crore and spent capital expenditure during the year amounted to R 1,571.41 crore.
The company had proposed a buyback of up to 6,10,16,949 equity shares from its equity shareholders as on the record date, being 15 October 2018, on a proportionate basis by way of the tender offer route through the stock exchange mechanism at a price of Rs 1,475 per equity share, aggregating up to Rs 9,000 crore.
The company has entered into a share purchase agreement on 18 March 2019 with Mr. V. G. Siddhartha, Coffee Day Trading Limited and Coffee Day Enterprises Limited (Sellers') for acquisition of 3,33,60,229 equity shares of Mindtree Limited aggregating to 20.32% of the paid-up equity share capital of Mindtree Limited.
Further the company, has acquired entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited on 10 April 2019. With this acquisition, L&T Shipbuilding Limited is now a wholly owned subsidiary of the Company.
Pursuant to an order dated 13 December 2018 passed by the National Company Law Tribunal, Mumbai bench, the equity share capital of L&T Seawoods Limited, a wholly owned subsidiary, was reduced to the extent of 34.50 crore shares aggregating to Rs 345 crore.
The Company has divested its entire stake in L&T Kobelco Machinery Private Limited, a subsidiary, to Kobe Steel, Ltd. on 17 April 2019.
As at 31 March 2019, L&T Group comprises 110 subsidiaries, 8 associates, 27 joint venture companies and 31 joint operations. L&T Group achieved order inflow of Rs 176834 crore during the year 2018-19, registering a growth of 15.6% over the previous year.
During the FY2019, the company received six British Sword of Honor awards and five-star certification from the British Safety Council, for third time in a row. The company's Eight projects won National Infrastructure & Construction Awards 2018. The company also won a Construction Week Award 2018, a MEED Quality Award for the Year 2018 in Oman and a MACE Global - Health, Safety & Well Being Award - 2018 for outstanding safety performance on site.
The period leading up to the lockdown and the subsequent stoppage of all economic activity from 25th March, 2020 has adversely affected your Company's operations in late FY 2019-20 as well as the better part of Q1 FY 2020-21.
The total Order Book of R 303,857 crores as on 31March, 2020 grew by 4% over the previous year.
During the FY2020, on exercise of the conversion option of USD200 million 0.675% convertible bonds due in 2019, the Company has allotted 3,79,388 equity shares of Rs 2/- each against conversion of 7,970 FCCBs of the face value of US$ 1000 each. Remaining 1,92,030 Bonds of the face value of US$1000 each were redeemed/repaid.
The company repaid long-term borrowings of USD 492.03 million (approx. Rs 3,500 crore) and on the other hand the company raised USD 425 million of foreign currency borrowings for meeting business requirements and certain capital expenditure.
The Company has issued and allotted on private placement basis, Unsecured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) aggregating to Rs 5900 crore during the financial year 2019-20.
The Company has issued Commercial Papers amounting to Rs 4,845 Crore during the FY 2019-20.
As at 31 March 2020, the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at Rs 13,559.73 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at Rs 8,637.58 crore. The company spent towards Capital Expenditure during the year amounted to Rs 1,370.51 crore.
The Company had acquired the entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited thereby making it a wholly owned subsidiary of the Company. Subsequently, pursuant to the National Company Law Tribunal (Mumbai & Chennai bench) approval for the Scheme of Amalgamation, L&T Shipbuilding Limited has merged with the Company (appointed date 01 April 2019 and effective date 18 May 2020).
The Company acquired 3,27,60,229 equity shares of Mindtree Limited, pursuant to the Share Purchase Agreement. Further, 164,42,134 equity shares of Mindtree Limited have been acquired in the open market and 5,13,25,371 equity shares have been acquired through open offer.
Pursuant to the approval of the Composite Scheme of Amalgamation & Arrangement between L&T Realty Limited (LTR), L&T Construction Equipment Limited (LTCEL) and L&T Construction Machinery Limited (LTCML) by National Company Law Tribunal, Mumbai bench (appointed date 1st April 2018 and effective date 17 May 2020), LTR has been amalgamated into LTCEL and the manufacturing business of LTCEL has been demerged into LTCML. As consideration towards this amalgamation and demerger, the Company has been allotted 19,91,32,091 equity shares of Rs 10 each by L&T Construction Machinery Limited and 4,71,600 equity shares of Rs 10 each and 64,83,00,000 12% non-convertible preference shares of Rs 10 each by L&T Construction Equipment Limited.
Pursuant to the amendment agreement entered by the Company with Canadian Pension Plan Investment Board (CCPIB), L&T Infrastructure Development Projects Limited, (L&T IDPL), a wholly owned subsidiary of the Company, has allotted 30,84,62,468 equity shares to CCPIB India Private Holdings Inc. Accordingly, the Company presently holds 51% in L&T IDPL.
During March 2020, the COVID pandemic increased rapidly forcing Governments of most countries to enforce a lockdown of all activities. Heeding to the various guidelines issued in India by the Central and State Governments and abroad by various agencies on the Covid-19 pandemic, all establishments, offices & factories of the Company had shut down operations from 25 March 2020.
For the quarter ended 31 March 2020, the impact due to COVID 19 on your Company's revenues and net profits was approximately Rs 1800 crore and Rs 400 crore respectively.
The Company resumed partial service of operations from 14 April 2020, after implementation of standard protocols in line with the guidelines prescribed.
During the FY2020, the company has secured major orders such as CIDCO Housing Project at Navi Mumbai, One of the e largest greenfield airports in India at Navi Mumbai and Mandarin Oriental Hotel, Muscat in Oman.
The business was conferred several prestigious awards during FY2020 including British Safety Council's Sword of Honour, for the fourth consecutive year, with ten of its projects securing the award, The Royal Society for the Prevention of Accidents (UK)' Gold Awards for Occupational Health & Safety for eleven projects and 18 National Safety Council awards in various categories.
During the quarter ended 31 December 2020, the Company in terms of the Business Transfer Agreement for divestment of Its Electrical Si Automation (E&A) business to Schneider Electric India Private Limited (a) accrued further sale consideration on fulfilment of relevant covenants (b) updated financial estimates of post-transaction closing adjustments. The Company expects final closure of the divestment of E&A business in the quarter ending 31 March 2021.
The consolidated order book of the Group stood at a record Rs 331,061 crore as at 31 December 2020, registering a robust growth of 9% over the March 2020 level.
During FY 2022, the Company sold its digital transformation business, incubated and operated as L&T NxT, to Mindtree Limited, a listed subsidiary of the Company, for a consideration of Rs 198 crore.
In year 2022, the Board of Directors of the Company had approved a Scheme for Amalgamation of L&T Hydrocarbon Engineering Limited (LTHE), a wholly owned subsidiary, with the Company, which was approved by the Hon'ble National Company Law Tribunal, Mumbai Bench and became effective from 7th February 2022, with the Appointed date, 1st April 2021. The rationale for the Scheme was to create cost effectiveness by integrating the Hydrocarbon business of LTHE and Engineering, Projects and Construction (EPC) power business of the Company. Subsequently all the subsidiaries of LTHE have become direct subsidiaries of the Company.
During the year 2021-22, the Company acquired 6,82,25,347 equity shares of L&T Finance Holdings Limited (LTFHL) and presently holds 163,92,29,920 equity shares representing 66.26% of the total share capital of LTFHL.
In year 2022, L&T Uttaranchal Hydropower Limited (L&T UHPL) ceased to be a subsidiary of the Company through sale of entire stake by the Company and L&T Power Development Limited (a wholly owned subsidiary) to ReNew Power Services Private Limited for a total consideration of Rs 1,003 crore.
During year 2022-23, the Company sold a portion of Smart World and Communication Business Unit to its subsidiary, L&T Technology Services Limited (LTTS) effective from April 01, 2023. The Pilot Green Hydrogen Plant was commissioned at Hazira during 2023.
During the year 2022-23, the Company commissioned Kempegowda International Airport T2, in Bengaluru; Seven Hospitals for Assam Cancer Care Foundation, in Assam, Birsa Munda Hockey Stadium, at Rourkela, Odisha; RAMCO Cement Plant at Kurnool; IIT Hyderabad Phase 2 - Technology Innovation Park (TIP) Building & Research Centre Complex (RCC); JCB manufacturing facility at Halol, in Gujarat and Prestige Jindal City at Bengaluru, in Karnataka.
Larsen & Toubro Ltd
Chairman Speech
A. M. Naik
Group Chairman
Indian Economy - an Oasis of Stability amidst Global Uncertainty
Dear Shareholders
There is an air of sustained optimism in India even as the world
grapples with economic uncertainties. The vision of the Government and the indomitable
spirit of Indians seem to be propelling the country forward. This has been made possible
through a nuanced combination of structural reforms, prudent regulatory actions and smart
policy manoeuvring. During the year under review, your Company has performed well and
continues to excel in the areas of infrastructure, hi-tech manufacturing and tech-driven
services. It also contributes actively to India's transition to a cleaner, greener
economy. At this juncture, we reiterate our commitment to pursue our business goals and
add value to all our stakeholders while continuing to advance the larger interests of our
country.
Business Scenario
The global economy has been in a volatile state throughout the year
under review. Global growth has been slowing down due to the conflict in Europe which has
disrupted global supply chains. Most central banks, in parallel increased their policy
rates to curb inflation, which in turn, could impact future investments.
In India however, the scenario has been more positive. The Government
has adhered to its infrastructure-driven growth path and continued with capex spending.
The Government's efforts have been complemented by the Reserve Bank of India (RBI)
through judicious interventions to ensure systemic liquidity, bolstering the confidence of
households and private companies.
Several domestic macroeconomic indicators provide reasons for cautious
optimism. An improved Tax-to-GDP ratio and a healthy Government Balance Sheet will
hopefully ensure that the spending proposals envisaged in the Union Budget proceed
unhindered. While export earnings from merchandise goods stagnated, the service sector
export earnings grew at a fast pace, ensuring that the Current Account Deficit (CAD)
scenario remained comfortable. On its part, the Government is doing the heavy lifting in
terms of spending on infrastructure. Meanwhile, the private sector's capacity
utilisation returned to pre-COVID levels, and select sectors have started witnessing an
uptick in investment. Going forward, this revival in private investments is likely to
become more broad-based. Further, bank balance sheets are well capitalised today to propel
investment growth.
Buoyed by the success of the Production Linked Incentive (PLI) scheme,
the Government is likely to extend it to more sectors and intensify efforts at structural
reforms in critical areas such as labour, logistics, manufacture, renewables, healthcare
and education. This should enable India to retain its ‘fastest-growing emerging
nation' status in the medium term. Shifts in global value chains, sustained
digitalisation initiatives at home, backed by India's zeal in meeting its
de-carbonisation objectives could well make India the world's third largest economy
by 2030.
Amidst all this, your Company is well positioned to ride the waves and
reap the benefits. Its proven expertise in building world-class infrastructure and
high-tech manufacturing, coupled with its emphasis on leveraging technology to deliver the
best possible output, place your Company in a sweet spot to take advantage of the
opportunities as they unfold.
Driving Growth
The Government is clearly pursuing an infrastructure-driven growth
strategy. It is expected that private capex will provide tailwinds to the growth momentum.
The National Infrastructure Pipeline (NIP), put together by the Government, provides a
clear visibility of the country's infrastructure requirements and the funds needed.
The National Monetisation Plan (NMP) has been envisaged to unlock value in the operational
infrastructure projects by engaging the private sector. It is expected that the National
Bank for Financing Infrastructure and Development (NaBFID), set up primarily as the
principal Development Financial Institution (DFI) will support the development of
long-term infrastructure financing in India. Thus, a clear vision is in place for
India's infrastructure. The public procurement initiatives as well as the renewed
efforts to revive the public-private partnership (PPP) model have an overarching
infrastructure focus. Clearly, the Government is serious about reviving private
investments in infrastructure. Once both public and private investments begin working in
tandem, it will boost India's Investment-to-GDP ratio, driving the country to an even
higher growth trajectory.
As India's dominant infra player, you will be happy to know that
your Company has lucrative prospects to look forward to across the spectrum, as infra
investments trigger employment generation and entrepreneurship opportunities, boost
income, and drive demand for goods and services.
There are encouraging signals on the Defence front as well.
India's journey towards being self-reliance or ‘Atmanirbharta' is
transiting from stated intention to visible action. The Government is keen to reduce
import dependency and go a step further to secure for India an entry into the global
supply-chain. Your Company is proud to have been associated for almost three decades with
this sector of crucial national significance, and is optimistic of the opportunities going
forward.
At this juncture, I wish to state that our defence business does not
manufacture explosives or ammunition of any kind, including cluster munitions or
anti-personnel landmines or nuclear weapons or components for such munitions. The business
also does not customise any delivery systems for such munitions. We have stated this
earlier, but it bears reiteration.
Synchronous Capex Recovery
These are rare occasions in the country's history where we are
evidencing a synchronous capex recovery in India and the GCC. For your Company's
projects business, the Middle East region is the primary overseas market. It is expected
to have higher investment outlays, and appears to be shifting focus from oil to clean
energy and other industrialisation initiatives. Over time, the pick-up in Africa and South
East Asia will reduce concentration risk in our international project businesses.
We expect IT spends across the world, revolving around digital
transformation, to continue at a healthy clip in the medium term despite concerns around
global slowdown. IT spends in selected areas offer your Company twin benefits. They
improve productivity as well as enable the Company to gain higher market share.
Group Performance Review
Against the backdrop of continued global uncertainty, your Company
turned in a creditable performance and registered appreciable recovery across key
performance parameters. Our Order Inflow for the year stood at ? 2,30,528 crore, which
was achieved on the back of major domestic order wins in Hydrocarbon and Infrastructure.
Although the international ordering environment was a shade below expectations, the strong
revival of the domestic market has been a cause for cheer.
The L&T Group recorded revenues of ? 1,83,341 crore during FY
2022-23, registering a growth of 17%. The growth was aided by improved project execution
backed by a strong Order Book, further complemented by a strong pick-up in the IT & TS
businesses amidst fears of global spends slowing down.
As at March 31, 2023, the Order Book at ? 3,99,526 crore is large,
growing and diversified. The Infrastructure segment has a 71% share of the consolidated
Order Book. The Order Book registered a growth of 12%, on the back of orders secured in
the Projects businesses.
A healthy Operational Profit After Tax at ? 10,374 crore, represents a
growth of 21% over the previous year. A combination of improved profitability and reduced
capital-intensity has resulted in improved return ratios. The Group has repaid borrowings
during the year and improved its Debt: Equity ratio.
Your Company continues to focus on shareholder value creation by
divesting non-core assets, capturing cost efficiencies, and leveraging technology for
productivity gains. Over time, the Company will also invest in various energy transition
initiatives as well as incubate and scale up new-age businesses and platforms. Our
strategically diversified business portfolio, geographical dispersion, robust balance
sheet and strong Order Book are definite markers to long-term value creation. Further, the
Company's proven execution strengths and committed workforce are helping it to
seamlessly transition to a more digitally-evolved work environment.
As an approach to business, your Company is committed to continue its
focus on cash generation, pursue prudent capital allocation, maintain a healthy leverage
and cash balances, and distribute it to shareholders on a regular basis.
It gives me great pleasure to inform you that the Board of Directors
has recommended a final dividend of ? 24 per share for FY 2022-23.
International Business
The Company's policy of aiming for wider geographic dispersal
continues to yield positive results, and de-risks exposure to a particular region. While
the Middle East region remains an area of focus for the Projects businesses, your Company
has expanded its outreach to new markets in Africa as well as South East Asia. Currently,
the Middle East region constitutes 87% of the international Order Book of ? 1,11,779
crore.
Training and Talent Management
L&T is its people. The success of the organisation is the sum of
the individual accomplishments of every member of Team L&T. Our people policies,
therefore, are simply to create the conditions, provide the incentives and eliminate the
obstacles to consistent peak performance.
While much has been done, we aim to do better. Despite the constraints
inherent to the businesses in which we operate, we are consciously stepping up our efforts
to improve our gender diversity ratio. We also leverage technologies to deliver ‘any
time learning' and to improve the breadth of engagement with our employees,
particularly the younger generation for whom being digital is natural.
Sustainable Development
We believe that we and all our stakeholders, are here for the long
haul. Every business decision we take is viewed through the lens of the future, to ensure
that temporary considerations do not undermine long-term value generation.
Our Integrated Annual Report brings together our financial and
sustainability performance across multiple parameters. We have been driving many
sustainability initiatives long before they were mandated by law. Since 2008, we have
maintained an annual reporting cycle for our sustainability performance. These Reports are
accessible on the Company's website.
Good governance is the central pillar around which the organisation has
been built. Your Company's core values pivot around the principles of independence,
transparency, accountability, responsibility, compliance, ethics and trust. Improving
Board gender diversity is also being actively pursued. We will do everything we can to
ensure that the value systems, which have been the hallmark of Larsen & Toubro for
over eight decades, remain inviolate.
Community Service
L&T-ites do not live in silos, insulated from the world around
them. We identify ourselves in spirit with the members of the community to which we
belong. We also believe that CSR initiatives are not simply a box to be ticked. We ensure
that our efforts across the country are aligned to common themes, and stay sharply focused
and outcome-oriented. Over the years, communities see tangible and durable benefits from
our presence. They have gained greater access to potable water and better sanitation.
Community members benefit from facilities for health, education and skill building. Change
cannot happen overnight, but with every step, we get closer to our social goals.
Conclusion
I would like to thank our employees, our customers, supply chain
partners, fellow Board Members and the Government for their contribution, directly and
indirectly, to our growth through all these years.
My special thanks to all our shareholders for the trust you have
reposed in us. You remain an invaluable pillar of strength, and we look forward to your
continued support in our journey towards setting higher levels of excellence.
I wish to conclude, on a personal note. As most of you must be aware, I
have already announced that I will be stepping down as Non-Executive Chairman of L&T,
effective September 30, 2023, and Mr. S. N. Subrahmanyan will take over as the Chairman
and Managing Director. My association with your Company, however, will continue as
Chairman Emeritus and as Chairman of LTIM and LTTS.
In a symbolic gesture, I will be handing over the L&T flag to Mr.
Subrahmanyan, and bestowing on him the attendant honour, responsibilities and challenges
which come with the position. This is succession planning in the full sense of the term,
and the change of guard at L&T could well rank among the smoothest in Indian industry.
Looking back, I consider myself privileged to have had the opportunity to serve, lead and
transform the Company that is building the India of the next century. As I have said on
multiple occasions before, my life and legacy are L&T, and I am happy and content that
I will be leaving it in very capable hands to continue its exemplary record of service to
the nation and society.
Jai Hind!
Larsen & Toubro Ltd
Company History
Larsen & Toubro Limited is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. The Company operate in over 50 countries worldwide. The Company is a major technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. The Company's manufacturing footprint extends across eight countries in addition to India.
The company's Engineering, Construction & Contracts Division (ECCD) undertakes engineering, design and construction of infrastructure, buildings, factories, water supply, and metallurgical & material handling projects covering civil, mechanical, electrical and instrumentation engineering disciplines. Their Engineering & Construction Division designs, engineering and executes projects for hydrocarbon sector with front-end design. Its heavy engineering division is organized into two independent companies: Heavy Engineering Independent Company and Ship Building Independent Company. Their Electrical & Electronics division comprises Electrical and Automation Independent Company and Medical Equipment and Systems business.
L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint, with facilities in China and the Gulf region. The company's businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support.
Larsen & Toubro Ltd was incorporated in the year 1946 as a private limited company. Earlier, the company was established as a partnership firm founded by two Danish engineers Henning Holk Larsen with Soren Kristian Toubro im Mumbai. In December 1950, the company became a Public Company with a paid-up capital of Rs.2 million. They executed prestigious orders during this period which includes the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant.
During the year 1981-82, the company acquired 2 bulk shipping carriers from Japan. During the year 1983-84, they started one cement plant with capacity of 1 MTPA at Maharashtra. In the year 1997, the company formed a joint venture company with Deere Pvt Ltd to manufacture agricultural tractors namely L&T-John Deere Pvt Ltd. In April 1, 2003, the company transferred their cement business to Ultra Tech Cement Ltd.
The company received a host of awards, medals and trophies for their continuous efforts. They received Environmental Excellence Gold award from Greentech Foundation during the years 2003-04 and 2004-05. Engineering Export Promotion Council (EEPC) offered a trophy for high exports. The Ministry of Power conferred the first prize in National Energy Conservation for the year 2005.
In July 2005, the company approved the divestment of their stake in L&T-John Deere Pvt Ltd. In August 2005, the company entered into a MoU with DatarSwitchgear Ltd (DSL) to merger the company with L&T. As on October 2005, the company totally exited from the packaging business by sale of their Glass Containers Business to ACE Glass. In the year 2006, the company amalgamated two of their own folds, the L&T Power Investments Pvt Ltd (LTPL) amalgamated with India Infrastructure Developers Ltd (IIDL).
During the year 2006-07, A Wall Street Journal survey featured L & T among Asia's 'Most Admired Companies' and ranked the company No.1 for quality of products and for overall reputation. In April 2007, the company and theirs associate Audco India Ltd (AIL) invested Rs 35 crore in the Coimbatore (TN) switchboard and valve unit. Larsen & Toubro made a tie up with Japan's Toshiba Corporation and Mitsubishi Heavy Industries for setting up manufacturing facilities for super-critical turbines and boilers used in coal-fired power generation plants.
During the year 2008-09, the company transferred their entire 100% stake in L&T Infrastructure Finance Company Ltd, L&T Finance Ltd and India Infrastructure Developers Ltd to L&T Capital Holdings Ltd (LTCHL). In March 31, 2009, the company acquired 50% stake in L&T-Demag Plastics Machinery Ltd from the joint venture partner Sumitomo (SHI) Demag Plastics Machinery GmbH. Accordingly, L&T-Demag Plastics Machinery Ltd became a wholly owned subsidiary of the company with effect from March 31, 2009.
In April 2010, the company and Rolls-Royce, the global power systems company, signed an MoU for cooperation to effectively address the projected need for light water reactors in India and internationally. Also, the company won a critical offshore platform contract from Gujarat State Petroleum Corporation (GSPC) valued at Rs 1060 crore. In May 2010, the company and Howden signed a joint venture to design, engineer, manufacture and supply axial fans and air preheaters to Indian thermal power plants ranging between 100 MW to 1200 MW. The joint venture will invest around Rs 100 crore for setting up of the industrial facility and related infrastructure. The manufacturing unit will be setup in Hazira, Gujarat.
In June 2010, the company secured orders aggregating Rs 747 crore from various customers like Coal India, Indiabulls Power Ltd and Hindalco Industries Ltd. Also, they secured orders aggregating to Rs 1440 crore for the construction of residential towers, township and factory building. The Thermal Power Plant Construction business unit secured two orders aggregating Rs 827 crore from GVK Power for their Gautami Combined Cycle Power Plant Expansion and from SEPCO-I for Talwandi Sabo Power Plant in Punjab.
In July 2010, the company won an offshore rig refurbishment contract from Oil and Natural Gas Corporation valued at Rs 376 crore. In August 2010, the company's Building & Factories Operating Company (B&F-OC), secured orders aggregating to Rs 10.25 billion for the construction of two hospital building, residential projects in Mumbai and a cement plant from a major cement manufacturer. Also, the company received two projects worth Rs 1195 crore from ONGC to set up additional processing units at its gas processing complexes at Hazira and Uran. In September 2010, the company and Befula Investments (South Africa) signed a shareholders agreement to incorporate Larsen & Toubro T&D SA (Pty) Ltd in South Africa to capitalize on the power transmission and distribution opportunities in South Africa.
In October 2010, the company received an order valued at Rs 1449 crore from DB Power Ltd promoted by the Bhaskar Group. In December 2010, they secured two orders amounting Rs 415 crore from Hindalco and Sepco-I. The Hindalco order worth Rs 253 crores is for carrying out structural steel works for the 6x150 MW captive power plant in Orissa. The Sepco-I order valued at Rs 162 crore is for the erection of boilers for their 2x660 MW Talwandi Sabo Power plant, developed by Sterlite Energy Ltd in Punjab.
In January 2011, the company secured orders aggregating Rs 1103 crore from various power plant developers for construction of merry go round systems, construction of dedicated railway lines to link power plant sites to the main line rail network. The company and Kobe Steel Ltd entered into a joint venture (JV) for the manufacture of internal mixers and twin screw rollerhead extruders for the tyre & rubber industry for global markets, including India. The JV aims to provide customers with products for the tyre industry. In February 2011, the company secured an order valued over Rs 1,100 crore from Gujarat State Electricity Corporation Ltd (GSECL), a government of Gujarat company, to set up a 1 x 375 MW gas based power plant at Dhuvaran, near Baroda in Gujarat, on EPC basis.
In May 2011, the company received an order valued over Rs 3500 crore from PPN Power Generating Company Ltd based in Chennai, for setting up a 3 x 360 MW gas based power plant at Village Pillaiperumalnallur in Nagpattinam District of Tamil Nadu State, on EPC basis. They won a process platform contract from Gujarat State Corporation (GSPC) valued at Rs 14.50 billion. In July 2011, the company bagged a major international EPC order valued at Rs 1210 crore from Qatar General Electricity & Water Corporation (KAHRAMAA) for supply and construction of thirteen extra high voltage (EHV) substations in Qatar.
In August 2011, the company bagged international orders valued at USD 889 million in the hydrocarbon sector. One order is from Abu Dhabi Gas Industries Limited (GASCO) for its Habshan-Ruwais-Shuweihat (52'/48' dia) Gas Pipeline Project. Valued at around USD 189 million, it involves EPC installation & commissioning of 123 KM of the pipeline to be commissioned in 24 to 26 months. The other order is a USD 450 million EPCI project awarded to L&T Hydrocarbon's Upstream Business Group from ADMA-OPCO, a subsidiary of ADNOC and a major producer of Oil & Gas for the UAE.
In August 2011, the company secured new orders worth Rs 1340 crore in the Building & Factories segment for the construction of commercial & residential buildings including add-on orders from ongoing projects. In September 2011, they received a project order valued around Rs 700 crore from the Petroleum Development Oman LLC (PDO). The order is for setting up a green field project planned to treat an average of 3 MMSCMD of gas. In November 2011, they bagged new orders worth Rs 1629 crore in the building and factories segment.
In December 2011, the company bagged a major order valued at Rs 21.64 billion in their Infrastructure Segment from GMR Infrastructure. The order is for construction of stretches consisting of six laning of Kishangarh Udaipur Ahmedabad Highway. The development would be executed on EPC (Engineering, Procurement & Construction) basis.
In 2012 Larsen and Toubro's financial arm L&T Finance Holdings Limited (LTFH) has entered into the housing finance business by acquiring Indo Pacific Housing Finance Ltd (IPHF), a small sized housing finance company. Larsen & Toubro (L&T) also bagged Rs 1,937 crore order for 4-laning of a major portion of Shivpuri-Dewas section of NH-3 in Madhya Pradesh from GVK Group. The company and Samsung Techwin have joined hands to cooperate in the Indian Army's Tracked Self Propelled Artillery programme. L&T and Nexter Systems join hands for Indian army artillery programme. L&T Joint Venture firm bags contract from Sadara Chemical Company. L&T Construction Secures Orders Valued at over Rs 2592 Crore, Rs 2040 crores and Rs 2008 crore from various business segments. L&T Wins Rs. 749 Crore Contract from ONGC for 4 Wellhead Platforms. L&T Wins Prestigious Order for Manufacture of Cryostat for International Fusion Energy Project. L&T led Joint Venture wins Rs. 1252 Cr Delhi Metro Contract. Larsen & Toubro bags $250mn EPC contract in Ras Laffan, Qatar. L&T bags Rs 781 cr contract from ONGC
In 2013 L&T Completes Acquisition of Audco India Ltd. L&T IDPL bags Rs. 1293 crore road project in Odisha. L&T Group Company Wins Saudi Aramco Contract. L&T Ranked Asia's 2nd Most Sustainable Company in Industrial Sector. L&T Technology Services Wins Frost & Sullivan Excellence Award. L&T Wins Golden Peacock Award for Excellence in Corporate Governance. L&T Power Wins National Energy Conservation Award. L&T Wins ICICI Foundation-CNBC TV 18 Inclusive India' Award. L&T Construction also Wins Rs.1630 Crores Expressway Project in Uttar Pradesh. L&T Wins Saudi Aramco Contract. L&T Wins Rs 5100 Crore Supercritical Power Plant Order from MP State Utility. L&T Construction Wins Rs. 4510 Crs Doha Metro Project
In 2015 L&T Won Golden Peacock Award for Risk Management', Award for Excellence in Power Project Execution from the Central Board and Good Corporate Citizen Award. L&T Construction Commissions India's first 765kV Gas Insulated Substation. L&T secures Rs 5,580 cr power plant order from NTPC. L&T also Signs MoU with AREVA for Jaitapur Nuclear Power Project. L&T opens new service centre in Nagpur.
At the time of announcement of Q4 March 2015 results on 30 May 2015, L&T said that the company's consolidated order inflow surged 39% on year-on-year basis at Rs 47582 crore in Q4 March 2015. On 3 July 2015, L&T announced that it has successfully flagged off India's first Nuclear 700 MWe Steam Generator for Kakrapar nuclear power plant in Gujarat. At the time of announcement of Q1 June 2015 results on 31 July 2015, L&T said that the company won new orders worth Rs 26376 crore at consolidated level in Q1 June 2015.
On 21 September 2015, Larsen & Toubro announced that it has sold 8.52 crore equity shares of its subsidiary L&T Finance Holdings representing 4.95% stake in the company on the National Stock Exchange at Rs 70 per share. At the time of announcement of Q2 September 2015 results on 30 October 2015, L&T said that the company won new orders worth Rs 28620 crore at consolidated level in Q2 September 2015.
On 9 November 2015, Larsen & Toubro announced that it has entered into an in-principle agreement for strategic sale of Kattupalli port in Tamil Nadu to Adani Kattupalli Ports Private Limited (AKPPL), a subsidiary of Adani Ports and Special Economic Zone (APSEZ). At the time of announcement of Q3 December 2015 results on 29 January 2016, L&T said that the company won new orders worth Rs 38528 crore at consolidated level in Q3 December 2015.
On 25 February 2016, L&T announced that its fully-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has signed a long-term agreement with McDermott International focused on subsea projects in deepwater segment emerging on the east coast of India. Under the agreement, LTHE and McDermott will develop a cost-effective approach which will utilize LTHE's state-of-the-art, strategically located Kattupalli facility near Chennai. It will be used for fabrication and setting up of a local spool base in India.
On 31 March 2016, L&T announced that it has sold its entire 89% stake in L&T Infocity Limited to Ace Urban Developers for total consideration of Rs 191 crore. L&T had promoted L&T Infocity Limited as a special purpose vehicle (SPV) in 1997 in partnership with Andhra Pradesh Infrastructure Investment Corporation to develop IT infrastructure in Andhra Pradesh. At the time of announcement of Q4 March 2016 results on 25 May 2016, L&T said that the company won new orders worth Rs 43334 crore at consolidated level in Q4 March 2016.
On 31 May 2016, L&T's wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) announced a teaming agreement with Parsons Corporation to provide engineering and design solutions for onshore and offshore projects across the hydrocarbon, fertilizer, chemicals, and modular plant sectors. On 15 July 2016, L&T announced that it has decided to participate in the offer for sale of equity shares by way of initial public offering by its subsidiary L&T Technology Services. L&T proposes to sell up to 15% of the equity shares held in L&T Technology Services through the offer.
At the time of announcement of Q1 June 2016 results on 29 July 2016, L&T said that the company's consolidated order inflow rose 14% on year-on-year basis at Rs 29702 crore in Q1 June 2016. On 26 August 2016, L&T Group Chairman A.M. Naik said at the 71st Annual General Meeting of the company that L&T plans to achieve revenue of Rs 2 lakh crore (USD 30 billion at the prevailing exchange rates) by 2021 without compromising on profit margins and achieving an order inflow in excess of Rs 2.5 lakh crore per annum.
On 22 September 2016, Larsen & Toubro announced that it has won an order worth USD 99.7 million from Vietnam Border Guard for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. It is the biggest export order given to a private Indian Shipyard till date.
On 4 October 2016, Larsen & Toubro announced that it has achieved synchronisation of the first 660 MW supercritical unit (Unit-5) of the 2x660 MW supercritical thermal power project at Chhabra in Rajasthan in record time of 42 months and four days from the date of Notice to Proceed.
On 14 October 2016, L&T announced that a consortium of the company and Sojitz Corp., Japan has won a major order worth Rs 3799 crore from the Dedicated Freight Corridor Corporation of India Ltd. (DFCCIL). This Design and Build Integrated Package involves the construction of Civil (Embankment, Structure, Tunnel), Track Works, Overhead Electrification, Traction Substations and Signaling & Telecommunication Works for double line electrified tracks with 2x25 kV AC, high rise Overhead Catenary System capable of operating at a maximum train speed of 100 Km/h, from Rewari to Dadri (128 Km).
On 20 October 2016, L&T announced the signing of a formal contract with the Department of Information & Technology, Maharashtra Government, under which Nagpur will be converted into the country's first large-scale integrated Smart City.
L&T-MHPS Boilers Private Limited (LMB), a joint venture of Larsen & Toubro Limited (L&T) and Mitsubishi Hitachi Power Systems Limited (MHPS), Japan, signed a Technology Licence Agreement with MHPS on 7 November 2016 for Selective Catalytic Reduction (SCR) systems. The technology licensing agreement is for design, engineering, manufacture, installation, commissioning, and sale of new boilers under BTG, EPC or SG packages or standalone SCR systems, and for existing and under construction boilers on exclusive basis in India.
On 8 November 2016, L&T announced that it has signed a long-term technical licence agreement with Chiyoda Corporation, Japan for its Flue Gas Desulphurisation (FGD) technology. The agreement grants L&T exclusive rights to undertake EPC of CT-121TM FGD Systems. At the time of announcement of Q2 September 2016 results on 22 November 2016, L&T said that the company's consolidated order inflow rose 11% on year-on-year basis at Rs 31119 crore in Q2 September 2016.
On 2 January 2017, L&T announced that it has bagged a project from Pune Municipal Corporation to convert Pune into a smart city as a part of Government of India's Smart City Mission. On the same day, L&T announced that its fully owned subsidiary L&T Hydrocarbon Engineering in consortium with EMAS CHIYODA Subsea, has won two awards involving Engineering, Procurement, Construction and Installation contracts from Saudi Arabian oil giant and biggest oil company in world, Saudi Aramco.
On 13 February 2017, L&T announced that the company has formed a joint venture with MBDA, a world leader in missile systems, to develop and supply missiles and missile systems to meet the growing potential requirements of the Indian armed forces. L&T will own 51% of the new joint venture company with MBDA owning the remaining 49% stake.
On 25 February 2017, L&T announced that its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has bagged an onshore EPC contract worth around Rs 1100 crore from Indian Oil Corporation Limited (IOCL) for setting up a 0.740 MMTPA Fluidised Cracking Unit (FCC) including LPG Treatment Facility at IOCL's Bongaigaon refinery in Assam.
On 28 February 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) has signed an Enterprise Framework Agreement (EFA) with Shell Global Solutions International B.V., for providing Engineering, Procurement and Construction Management (EPCM) services for Shell projects in the Middle East, South East Asia and India. The EFA is for a period of five years.
On 20 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has bagged an offshore contract valued at Rs 1656 crore for the Neelam Re-Development & B173AC Project from Oil & Natural Gas Corporation (ONGC). On 28 March 2017, L&T announced that the Buildings & Factories Business of L&T Construction has bagged a major design & build order worth Rs 2903 crore to re-develop Mumbai's century-old BDD Chawls for Maharashtra Housing and Area Development Authority (MHADA).
On 30 March 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited has bagged orders totalling close to Rs 4000 crore in the International market. On 7 April 2017, L&T announced that it has commissioned gas turbines in open cycle for two large gas-based power projects in Bangladesh in quick succession during March 2017.
On 21 April 2017, Larsen & Toubro and Hanwha Techwin (HTW) of South Korea signed a contract for execution of the 155mm/ 52 Cal Tracked Self Propelled (SP) gun program for the Indian Army. On 12 May 2017, Larsen & Toubro announced that it has won a contract worth Rs 4500 crore for supply of 100 units of 155mm/ 52 calibre Tracked Self-Propelled gun systems to the Indian Army. It is the largest private sector defence order for artillery guns.
On 26 May 2017, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) has signed a Memorandum of Agreement (MOA) with Institute of Chemical Technology (ICT) to build ethanol plants based on the fully indigenous technology developed by ICT for producing Second Generation Ethanol.
At the time of announcement of Q4 March 2017 results on 29 May 2017, L&T said its consolidated order inflow rose 9.6% on year-on-year basis to Rs 47289 crore in Q4 March 2017. On 20 June 2017, Larsen & Toubro announced the launch of a Floating Dock (FDN-2) designed and built for the Indian Navy at the company's greenfield shipyard at Kattupalli, near Chennai. This marks a significant achievement for L&T's Shipbuilding arm in Design, Construction and Project Management of Defence Vessels.
At the time of announcement of Q1 June 2017 results on 28 July 2017, L&T said that the company won new orders worth Rs 26352 crore at consolidated level in Q1 June 2017 in a challenging business environment. On 2 August 2017, Larsen & Toubro announced the bagging of a Rs 3375-crore major breakthrough order from Metro Express Limited which is owned by the Government of Mauritius to design and build an Integrated Light Rail-based Urban Transit System in Mauritius. The project will be fully funded through a Government of India grant and Line of Credit.
On 16 August 2017, L&T announced that it entered into a definitive agreement for the divestment of its entire stake in its wholly-owned subsidiary L&T Cutting Tools Limited to IMC International Metalworking Companies B.V, a company owned by Berkshire Hathaway Inc., for a total consideration of Rs 174.04 crore.
On 2 September 2017, L&T announced that its subsidiary Infrastructure Development Projects Limited (L&T IDPL) has filed an application with Securities and Exchange Board of India for registration of its proposed infrastructure investment trust, named IndInfravit Trust.
On 3 October 2017, Larsen & Toubro announced that it has completed the purchase of the entire remaining 26% stake held by Airbus Defence and Space GmbH (earlier known as EADS Deutschland GmbH) in L&T Cassidian, a joint venture between Larsen & Toubro and Airbus Defence and Space GmbH.
At the time of announcement of Q2 September 2017 results on 11 November 2017, L&T said that the company won new orders worth Rs 28732 crore at consolidated level in Q2 September 2017 amidst subdued business environment, policy uncertainties and delayed implementation.
On 1 January 2018, L&T announced that its wholly owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured a major EPC contract for Crude Distillation and Vacuum Distillation Unit (CDU & VDU) from Hindustan Petroleum Corporation Limited, Visakhapatnam Refinery, and an extension to an ongoing contract for Reliance Industries Jamnagar, both adding to about Rs 2100 crore. On 2 January 2017, L&T announced that its construction division has won orders worth Rs 1454 crore across various business segments.
On 5 January 2018, L&T announced that its wholly-owned subsidiary L&T Hydrocarbon Engineering Limited (LTHE) has secured an offshore contract for Bassein Development 3 Well Platform & Pipeline Project' from Oil & Natural Gas Corporation (ONGC). The order is valued at approximately Rs 1483 crore. On 8 January 2018, L&T announced the Transportation Infrastructure and Water & Effluent Treatment businesses of L&T Construction have jointly bagged three EPC orders worth Rs 2265 crore from Andhra Pradesh Capital Region Development Authority (APCRDA).
At the time of announcement of Q3 December 2017 results on 31 January 2018, L&T said its consolidated order inflow jumped 38% on year-on-year basis to Rs 48130 crore in Q3 December 2017. Consolidated order book of the group stood at Rs 270727 crore as on 31 December 2017. The international order book constituted 25% of the total order book.
The board of directors of the company at a meeting held on 31 January 2018 approved subscription to equity shares offered by its subsidiary L&T Finance Holdings (LTFH) on a preferential basis up to an amount not exceeding Rs 2000 crore, subject to necessary approvals, including the approval of board of directors and shareholders of LTFH. The exact amount of the subscription would depend on the preferential issue that LTFH would be making to L&T.
During the FY2019, the company repaid long-term borrowings of USD 233 million (approx.Rs 1610 crore including secured debentures of Rs 400 crore). On the other hand, the company raised USD 100 million of foreign currency borrowings and Rs 90 Crore of Rupee Term Loan as fresh unsecured long-term borrowings for meeting business requirements and certain capital expenditure.
As at 31March 2019, the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at Rs 12,174.29 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at Rs 7,934.32 crore and spent capital expenditure during the year amounted to R 1,571.41 crore.
The company had proposed a buyback of up to 6,10,16,949 equity shares from its equity shareholders as on the record date, being 15 October 2018, on a proportionate basis by way of the tender offer route through the stock exchange mechanism at a price of Rs 1,475 per equity share, aggregating up to Rs 9,000 crore.
The company has entered into a share purchase agreement on 18 March 2019 with Mr. V. G. Siddhartha, Coffee Day Trading Limited and Coffee Day Enterprises Limited (Sellers') for acquisition of 3,33,60,229 equity shares of Mindtree Limited aggregating to 20.32% of the paid-up equity share capital of Mindtree Limited.
Further the company, has acquired entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited on 10 April 2019. With this acquisition, L&T Shipbuilding Limited is now a wholly owned subsidiary of the Company.
Pursuant to an order dated 13 December 2018 passed by the National Company Law Tribunal, Mumbai bench, the equity share capital of L&T Seawoods Limited, a wholly owned subsidiary, was reduced to the extent of 34.50 crore shares aggregating to Rs 345 crore.
The Company has divested its entire stake in L&T Kobelco Machinery Private Limited, a subsidiary, to Kobe Steel, Ltd. on 17 April 2019.
As at 31 March 2019, L&T Group comprises 110 subsidiaries, 8 associates, 27 joint venture companies and 31 joint operations. L&T Group achieved order inflow of Rs 176834 crore during the year 2018-19, registering a growth of 15.6% over the previous year.
During the FY2019, the company received six British Sword of Honor awards and five-star certification from the British Safety Council, for third time in a row. The company's Eight projects won National Infrastructure & Construction Awards 2018. The company also won a Construction Week Award 2018, a MEED Quality Award for the Year 2018 in Oman and a MACE Global - Health, Safety & Well Being Award - 2018 for outstanding safety performance on site.
The period leading up to the lockdown and the subsequent stoppage of all economic activity from 25th March, 2020 has adversely affected your Company's operations in late FY 2019-20 as well as the better part of Q1 FY 2020-21.
The total Order Book of R 303,857 crores as on 31March, 2020 grew by 4% over the previous year.
During the FY2020, on exercise of the conversion option of USD200 million 0.675% convertible bonds due in 2019, the Company has allotted 3,79,388 equity shares of Rs 2/- each against conversion of 7,970 FCCBs of the face value of US$ 1000 each. Remaining 1,92,030 Bonds of the face value of US$1000 each were redeemed/repaid.
The company repaid long-term borrowings of USD 492.03 million (approx. Rs 3,500 crore) and on the other hand the company raised USD 425 million of foreign currency borrowings for meeting business requirements and certain capital expenditure.
The Company has issued and allotted on private placement basis, Unsecured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) aggregating to Rs 5900 crore during the financial year 2019-20.
The Company has issued Commercial Papers amounting to Rs 4,845 Crore during the FY 2019-20.
As at 31 March 2020, the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at Rs 13,559.73 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at Rs 8,637.58 crore. The company spent towards Capital Expenditure during the year amounted to Rs 1,370.51 crore.
The Company had acquired the entire stake held by Tamil Nadu Industrial Development Corporation (TIDCO) in L&T Shipbuilding Limited thereby making it a wholly owned subsidiary of the Company. Subsequently, pursuant to the National Company Law Tribunal (Mumbai & Chennai bench) approval for the Scheme of Amalgamation, L&T Shipbuilding Limited has merged with the Company (appointed date 01 April 2019 and effective date 18 May 2020).
The Company acquired 3,27,60,229 equity shares of Mindtree Limited, pursuant to the Share Purchase Agreement. Further, 164,42,134 equity shares of Mindtree Limited have been acquired in the open market and 5,13,25,371 equity shares have been acquired through open offer.
Pursuant to the approval of the Composite Scheme of Amalgamation & Arrangement between L&T Realty Limited (LTR), L&T Construction Equipment Limited (LTCEL) and L&T Construction Machinery Limited (LTCML) by National Company Law Tribunal, Mumbai bench (appointed date 1st April 2018 and effective date 17 May 2020), LTR has been amalgamated into LTCEL and the manufacturing business of LTCEL has been demerged into LTCML. As consideration towards this amalgamation and demerger, the Company has been allotted 19,91,32,091 equity shares of Rs 10 each by L&T Construction Machinery Limited and 4,71,600 equity shares of Rs 10 each and 64,83,00,000 12% non-convertible preference shares of Rs 10 each by L&T Construction Equipment Limited.
Pursuant to the amendment agreement entered by the Company with Canadian Pension Plan Investment Board (CCPIB), L&T Infrastructure Development Projects Limited, (L&T IDPL), a wholly owned subsidiary of the Company, has allotted 30,84,62,468 equity shares to CCPIB India Private Holdings Inc. Accordingly, the Company presently holds 51% in L&T IDPL.
During March 2020, the COVID pandemic increased rapidly forcing Governments of most countries to enforce a lockdown of all activities. Heeding to the various guidelines issued in India by the Central and State Governments and abroad by various agencies on the Covid-19 pandemic, all establishments, offices & factories of the Company had shut down operations from 25 March 2020.
For the quarter ended 31 March 2020, the impact due to COVID 19 on your Company's revenues and net profits was approximately Rs 1800 crore and Rs 400 crore respectively.
The Company resumed partial service of operations from 14 April 2020, after implementation of standard protocols in line with the guidelines prescribed.
During the FY2020, the company has secured major orders such as CIDCO Housing Project at Navi Mumbai, One of the e largest greenfield airports in India at Navi Mumbai and Mandarin Oriental Hotel, Muscat in Oman.
The business was conferred several prestigious awards during FY2020 including British Safety Council's Sword of Honour, for the fourth consecutive year, with ten of its projects securing the award, The Royal Society for the Prevention of Accidents (UK)' Gold Awards for Occupational Health & Safety for eleven projects and 18 National Safety Council awards in various categories.
During the quarter ended 31 December 2020, the Company in terms of the Business Transfer Agreement for divestment of Its Electrical Si Automation (E&A) business to Schneider Electric India Private Limited (a) accrued further sale consideration on fulfilment of relevant covenants (b) updated financial estimates of post-transaction closing adjustments. The Company expects final closure of the divestment of E&A business in the quarter ending 31 March 2021.
The consolidated order book of the Group stood at a record Rs 331,061 crore as at 31 December 2020, registering a robust growth of 9% over the March 2020 level.
During FY 2022, the Company sold its digital transformation business, incubated and operated as L&T NxT, to Mindtree Limited, a listed subsidiary of the Company, for a consideration of Rs 198 crore.
In year 2022, the Board of Directors of the Company had approved a Scheme for Amalgamation of L&T Hydrocarbon Engineering Limited (LTHE), a wholly owned subsidiary, with the Company, which was approved by the Hon'ble National Company Law Tribunal, Mumbai Bench and became effective from 7th February 2022, with the Appointed date, 1st April 2021. The rationale for the Scheme was to create cost effectiveness by integrating the Hydrocarbon business of LTHE and Engineering, Projects and Construction (EPC) power business of the Company. Subsequently all the subsidiaries of LTHE have become direct subsidiaries of the Company.
During the year 2021-22, the Company acquired 6,82,25,347 equity shares of L&T Finance Holdings Limited (LTFHL) and presently holds 163,92,29,920 equity shares representing 66.26% of the total share capital of LTFHL.
In year 2022, L&T Uttaranchal Hydropower Limited (L&T UHPL) ceased to be a subsidiary of the Company through sale of entire stake by the Company and L&T Power Development Limited (a wholly owned subsidiary) to ReNew Power Services Private Limited for a total consideration of Rs 1,003 crore.
During year 2022-23, the Company sold a portion of Smart World and Communication Business Unit to its subsidiary, L&T Technology Services Limited (LTTS) effective from April 01, 2023. The Pilot Green Hydrogen Plant was commissioned at Hazira during 2023.
During the year 2022-23, the Company commissioned Kempegowda International Airport T2, in Bengaluru; Seven Hospitals for Assam Cancer Care Foundation, in Assam, Birsa Munda Hockey Stadium, at Rourkela, Odisha; RAMCO Cement Plant at Kurnool; IIT Hyderabad Phase 2 - Technology Innovation Park (TIP) Building & Research Centre Complex (RCC); JCB manufacturing facility at Halol, in Gujarat and Prestige Jindal City at Bengaluru, in Karnataka.
Larsen & Toubro Ltd
Directors Reports
Dear Members,
The Directors have pleasure in presenting their 78th Annual Report and
Audited Financial Statements for the year ended 31st March 2023.
FINANCIAL RESULTS:
Rs. crore
| Particulars |
2022-23 |
2021-22 |
| Profit before depreciation, exceptional items & tax |
11204.34 |
10913.91 |
| Less: Depreciation, amortization, impairment and obsolescence |
1371.64 |
1172.50 |
| Profit before exceptional items and tax |
9832.70 |
9741.41 |
| Add: Exceptional Items |
– |
290.06 |
| Profit before tax |
9832.70 |
10031.47 |
| Less: Provision for tax |
1983.73 |
2152.02 |
| Net Profit after tax |
7848.97 |
7879.45 |
| Add: Balance brought forward from the previous year |
31131.14 |
25722.05 |
| Less: Dividend paid for the previous year |
3091.42 |
2528.38 |
| Add/(Less): Gain/(Loss) on remeasurement of the net defined
benefits plans |
(25.37) |
58.02 |
| Balance to be carried forward |
35863.32 |
31131.14 |
PERFORMANCE OF THE COMPANY:
The total income for the financial year under review was
? 1,14,535.93 crore as against ? 1,04,613.06 crore for the previous
financial year, registering an increase of 9.49%. The profit before tax excluding
exceptional items was
? 9,832.70 crore for the financial year under review as against ?
9,741.41 crore for the previous financial year. The profit after tax excluding exceptional
items was ? 7,848.97 crore for the financial year under review as against
? 7,612.16 crore for the previous financial year, registering an
increase of 3.11%.
AMOUNT TO BE CARRIED TO GENERAL RESERVE:
The Company has not transferred any amount to the general reserve
during the current financial year.
DIVIDEND:
The Directors recommend payment of dividend of ? 24 (1200%) per equity
share of face value of ? 2/- each on the share capital amounting to ? 3,373 crore,
working out to a payout ratio of 43%.
The Dividend payment is based upon the parameters mentioned in the
Dividend Distribution Policy approved by the Board of Directors of the Company which is in
line with Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
The Policy is uploaded on the Company's website at
https://www.larsentoubro.com/corporate/about-lt-group/ corporate-policies/.
CAPITAL & FINANCE:
During the year under review, the Company allotted 453,067 equity
shares of ? 2/- each upon exercise of stock options by the eligible employees under the
Employee Stock Option Schemes.
During the year, the Company repaid Non-convertible Debentures of ?
5,281 crore and short-term External Commercial Borrowings of USD 107 million, as per the
repayment schedule.
The Company has issued and allotted on private placement basis,
Unsecured, Rated, Listed, Redeemable Non-convertible Debentures (NCDs) aggregating ?
2,000 crore during FY 2023. These NCDs are listed on the Wholesale Debt Market Segment of
National Stock Exchange of India Limited. During FY 2023, the Company also received ? 450
crore (? 2.5 lakh each on 18,000 Debentures) towards the second call on partly paid-up
Debentures issued by the Company in FY 2021. The funds raised through issuance of NCDs
were utilized as per the objects stated in the Information Memorandum of the respective
NCDs.
The Company has issued Commercial Papers amounting to ? 30,475 crore
during FY 2023. As on date, the outstanding amount of Commercial Papers is ? 8,725 crore.
The Company has not defaulted on payment of any dues to the financial lenders.
The Company's borrowing programmes have received the highest
credit ratings from CRISIL Ratings Limited, ICRA Limited and India Ratings and Research
Private Limited. The details of the same are given on page 340 in Annexure ‘B'
– Report on Corporate Governance forming part of this Board Report and is also
available on the website of the Company.
SALE OF CARVED-OUT BUSINESS OF SMART WORLD & COMMUNICATION:
During FY 2023, the Company entered into Business Transfer Agreement
with L&T Technology Services Limited (LTTS), a listed subsidiary of the Company, for
sale of its carved-out Business of Smart World and Communication Business Unit to LTTS for
a consideration of ? 800 crore, subject to customary working capital adjustments as set
out in the Business Transfer Agreement. The approval of the shareholders was received on
14th February 2023 and the sale was completed on 1st April 2023. The valuation report with
the details of valuation metrics and cash flow projections was made available for
inspection of the shareholders during the Postal Ballot.
AMALGAMATION OF MINDTREE LIMITED WITH LTIMINDTREE LIMITED (ERSTWHILE
LARSEN & TOUBRO INFOTECH LIMITED):
During the year under review, the Scheme of
Amalgamation of Mindtree Limited with Larsen & Toubro Infotech
Limited (LTI), listed subsidiaries of the Company, was approved by the Hon'ble
National Company Law Tribunal, Mumbai Bench and Bangalore Bench and became effective from
14th November 2022. The name of LTI has been subsequently changed to ‘LTIMindtree
Limited' with effect from 15th November 2022. As on 31st March 2023, the shareholding
of the Company in the merged entity is 20,31,69,279 equity shares of face value ? 1 each
representing 68.68% of the total share capital of LTIMindtree Limited.
CAPITAL EXPENDITURE:
As at 31st March 2023, the gross value of property, plant and
equipment, investment property and other intangible assets including leased assets, were
at ? 19,937.14 crore and the net value of property, plant and equipment, investment
property and other intangible assets, including leased assets were at ? 11,710.73 crore.
Capital Expenditure during the year amounted to ? 2,396.90 crore.
DEPOSITS:
During the year under review, the Company has not accepted deposits
from the public falling within the ambit of Section 73 of the Companies Act, 2013 and the
rules framed thereunder. The requisite return for FY 2022 with respect to amount(s) not
considered as deposits has been filed. The Company does not have any unclaimed deposits as
of date.
SUBSIDIARY / ASSOCIATE / JOINT VENTURE COMPANIES:
During the year under review, the Company subscribed to_/ acquired
equity / preference shares in various subsidiary_/ associate / joint venture companies.
The details of investments / divestments in subsidiary companies during the year are as
under:
A) Shares subscribed/ acquired during the year:
| Name of the Company |
Type of Shares |
No. of shares |
| L&T Infrastructure Developers Limited |
Preference (Bonus Issue) |
1,13,500 |
| L&T Network Services Private Limited |
Equity |
90,00,000 |
| L&T Metro Rail (Hyderabad) Limited |
Equity |
220,00,00,000* |
| PT. Larsen Toubro (Indonesia) |
Equity |
25,700 |
| L&T Seawoods Limited |
Equity (Bonus Issue) |
4,19,91,050 |
| L&T Energy Hydrocarbon Engineering Limited |
Equity |
45,00,000 |
| (Formerly known as L&T Chiyoda Limited) |
|
|
* Subscribed to equity shares of face value ? 10 each and paid ? 6
per share on application. Balance ? 4 per share was paid on April 28, 2023 towards call
money.
B) Companies Struck off/liquidated:
The approval is still awaited with respect to the application to the
Ministry of Corporate Affairs for strike off under the provisions of Companies Act, 2013
of Kesun Iron and Steel Company Private Limited made on 15th December 2021.
Larsen & Toubro LLC (Delaware, USA) was liquidated on 13th
September 2022.
C) Equity shares sold / transferred / reduced during the year:
Pursuant to the Order dated 13th January 2023, passed by the National
Company Law Tribunal,
Mumbai bench, the equity share capital of L&T Power Development
Limited, a wholly owned subsidiary was reduced by 82,30,36,795 shares aggregating to
? 823.04 crore by way of return of cash amounting to ? 220.09 crore
and adjustment of ? 602.95 crore against capital not represented by assets.
The Company has signed an agreement on 16th December 2022 to divest its
51% stake in L&T Infrastructure Development Projects Limited (L&T IDPL) to a
portfolio company of Infrastructure Yield Plus II, an infrastructure fund managed by
Edelweiss Alternatives. The sale would be completed on meeting the closing conditions as
per the agreement.
A statement containing the salient features of the financial statement
of subsidiary / associate / joint venture companies and their contribution to the overall
performance of the Company is provided on pages 682 to 692 of this Integrated Annual
Report. The Company has formulated a policy on identification of material subsidiaries in
line with Regulation 16(1)(c) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and the same is placed on the Company's website at
https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/. The Company
does not have any material subsidiaries as on the date of this report.
PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, GUARANTEES GIVEN OR
SECURITY PROVIDED BY THE COMPANY:
The Company has disclosed the full particulars of the loans given,
investments made or guarantees given or security provided as required under Section 186 of
the Companies Act, 2013, Regulation 34(3) and Schedule Rs. of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 in Note 57 forming part of the
financial statements.
PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:
Pursuant to the amendments to the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015, the Company has revised its existing Related
Party Transactions Policy to align it with the requirements of the said Regulations.
The updated Related Party Transactions Policy has been uploaded on the
Company's website https://www.larsentoubro.com/corporate/about-lt-group/
corporate-policies/.
The Company has a process in place to periodically review and monitor
Related Party Transactions.
All related party transactions entered during FY 2023 were in the
ordinary course of business and at arm's length. The Audit Committee has approved the
related party transactions for FY 2023 and the estimated related party transactions for FY
2024.
There were no Related Party Transactions that have conflict with the
interest of the Company.
The Company is seeking an enabling approval for certain material
related party transactions at the ensuing Annual General Meeting (AGM). Shareholders are
requested to refer to the AGM notice at pages 285 to 305 of this Integrated Annual Report,
for details of the proposed material related party transactions.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF
THE COMPANY, BETWEEN THE END OF THE FINANCIAL YEAR AND THE DATE OF THE REPORT:
Other than stated elsewhere in this report, there are no material
changes and commitments affecting the financial position of the Company between the end of
the financial year and the date of this report.
CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO:
Information as required to be given under
Section 134(3)(m) of the Companies Act, 2013 read with Rule 8(3) of the
Companies (Accounts) Rules, 2014 is provided in Annexure ‘A' forming part of
this Board Report.
DETAILS OF DIRECTORS AND KEY MANAGERIAL PERSONNEL APPOINTED/RETIRED:
Mr. J. D. Patil ceased to be a Whole-time Director of the Company with
effect from 30th June 2022 on account of superannuation from the services of the Company.
Mr. D. K. Sen ceased to be a Whole-time Director of the Company with effect from 7th April
2023 on account of superannuation from the services of the Company. The Board places on
record its appreciation towards the valuable contribution made by them during their tenure
as Directors of the Company.
Pursuant to the recommendation of the Nomination and Remuneration
Committee (NRC), the Board and shareholders have approved the appointment of Mr. Anil Rs..
Parab as Whole-time Director for a period of five years with effect from 5th August 2022.
Mr. A. M. Naik has decided to step down as Non-Executive Chairman of
the Company with effect from 30th September 2023. He has been conferred the status of
"Chairman Emeritus" by the Board.
The Board, pursuant to the recommendation of the NRC, appointed Mr. S.N
Subrahmanyan as Chairman and re-designated as Chairman and Managing Director of the
Company with effect from 1st October 2023.
Based on the recommendation of the NRC, the Board at its Meeting held
on 10th May 2023, has approved the appointment of Mr. Jyoti Sagar as Independent Director
of the Company with effect from 10th May 2023 upto 18th March 2028 and Mr. Rajnish Kumar
as Independent Director with effect from 10th May 2023 upto 9th May 2028, subject to the
approval of shareholders through special resolution. The NRC considered the appointment of
Mr. Jyoti Sagar and Mr. Rajnish Kumar as Independent Directors after evaluating the
skills, knowledge and experience required on the Board as per the approved skill matrix.
Mr. A. M. Naik, Mr. Hemant Bhargava and Mr. M. Rs.. Satish, retire by
rotation at the ensuing Annual General Meeting (AGM) and being eligible, offer themselves
for re-appointment.
The notice convening the AGM includes the proposal for appointment/
re-appointment of Directors.
The terms and conditions of appointment of the
Independent Directors are in compliance with the provisions of the
Companies Act, 2013 and are placed on the website of the Company
https://investors.larsentoubro.com/listing-compliance-disclosuresunderstatutes.aspx.
The Company has also disclosed on its website
https://investors.larsentoubro.com/listing-compliance-disclosuresunderstatutes.aspx
details of the familiarization programs to educate the Independent Directors regarding
their roles, rights and responsibilities in the Company and the nature of the industry in
which the Company operates, the business model of the Company, etc.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS:
This information is given in Annexure ‘B' - Report on
Corporate Governance forming part of this Report. Members are requested to refer to page
320 of this Integrated Annual Report.
AUDIT COMMITTEE:
The Company has constituted an Audit Committee in terms of the
requirements of the Companies Act, 2013 read with the rules made thereunder and Regulation
18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The
details relating to the same are given in Annexure ‘B' - Report on Corporate
Governance forming part of this Board Report. Members are requested to refer to pages 324
to 326 of this Integrated Annual Report.
STAKEHOLDERS RELATIONSHIP COMMITTEE:
The Company has constituted a Stakeholders Relationship Committee in
terms of the requirements of the Companies Act, 2013 read with the rules made thereunder
and Regulation 20 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The details relating to the same are given in Annexure ‘B' -
Report on Corporate Governance forming part of this Board Report. Members are requested to
refer to pages 330 and 331 of this Integrated Annual Report.
NOMINATION AND REMUNERATION COMMITTEE:
The Company has constituted a Nomination and Remuneration Committee in
accordance with the requirements of the Companies Act, 2013 read with the rules made
thereunder and Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The details relating to the same are given in Annexure ‘B' -
Report on Corporate Governance forming part of this Board Report. Members are requested to
refer to pages 326 to 330 of this Integrated Annual Report.
RISK MANAGEMENT COMMITTEE:
The Company has constituted a Board Risk
Management Committee in terms of the requirements of Regulation 21 of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other
applicable provisions, if any. The details relating to the same are given in Annexure
‘B' - Report on Corporate Governance forming part of this Board Report. Members
are requested to refer to pages 332 and 333 of this Integrated Annual Report.
COMPANY POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION:
The NRC has formulated a policy on Directors' appointment and
remuneration including recommendation of remuneration of the key managerial personnel and
senior management personnel, and the criteria for determining qualifications, positive
attributes and independence of a Director. Nomination and Remuneration Policy is provided
as Annexure ‘F' forming part of this Board Report and also disclosed on the
Company's website at https://www.larsentoubro.com/corporate/about-lt-group/
corporate-policies/. The NRC has also formulated a separate policy on Board Diversity.
DECLARATION OF INDEPENDENCE:
The Company has received Declarations of Independence as stipulated
under Section 149(7) of the Companies Act, 2013 and Regulation 25(8) of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 from Independent Directors
confirming that he/she is not disqualified from being appointed/re-appointed/continue as
an Independent Director as per the criteria laid down in Section 149(6) of the Companies
Act, 2013 and Regulation 16(1)(b) of SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015. The same are also displayed on the website of the Company
https://investors.larsentoubro.com/listing-compliance-disclosuresunderstatutes.aspx. The
Independent Directors have complied with the Code for Independent Directors prescribed in
Schedule IV to the Companies Act, 2013. The Independent Directors of the Company have
registered themselves with the data bank maintained by Indian Institute of Corporate
Affairs (IICA). In terms of Section 150 of the Companies Act, 2013 read with Rule 6(4) of
the Companies (Appointment & Qualification of Directors) Rules, 2014, all Independent
Directors are exempted from undertaking the online proficiency self-assessment test
conducted by the IICA.
PERFORMANCE EVALUATION:
The Nomination and Remuneration Committee and the Board have laid down
the manner in which formal annual evaluation of the performance of the Board, Committees,
Individual Directors, Chief Executive Officer & Managing Director (CEO & MD) and
the Chairman has to be made. All Directors responded through a structured questionnaire
giving feedback about the performance of the Board, its Committees, Individual Directors,
CEO & MD and the Chairman.
As in the previous years, an external consultant was engaged to receive
the responses of the Directors and consolidate/ analyze the responses. The same external
consultant's IT platform was used for the entire board evaluation process. This
ensured that the process was transparent and independent of involvement of the Management
or the Company's IT system. This has enabled unbiased feedback.
The Board Performance Evaluation inputs, including areas of improvement
for the Directors, Board processes and related issues for enhanced Board effectiveness
were discussed in the meetings of the Nomination and Remuneration Committee and the Board
of Directors held on 10th May 2023.
DISCLOSURE OF REMUNERATION:
The details of remuneration as required to be disclosed under the
Companies Act, 2013 and the rules made thereunder, are given in Annexure ‘D'
forming part of this Board Report.
The information in respect of employees of the Company pursuant to Rule
5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, as amended from time to time, is provided in Annexure ‘G' forming
part of this report. In terms of Section 136(1) of the Companies Act, 2013 and the rules
made thereunder, the Report and Accounts are being sent to the Shareholders excluding the
aforesaid Annexure. Any Shareholder interested in obtaining a copy of the same may write
to the Company Secretary at the Registered Office of the Company. None of the employees
listed in the said Annexure is related to any Director of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT:
The Board of Directors of the Company confirms: a) In the preparation
of Annual Accounts, the applicable accounting standards have been followed along with
proper explanation relating to material departures; b) The Directors have selected such
accounting policies and applied them consistently and made judgements and estimates that
are reasonable and prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the Company for that
period; c) The Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies Act, 2013
for safeguarding the assets of the Company and for preventing and detecting fraud and
other irregularities; d) The Directors have prepared the Annual Accounts on a going
concern basis; e) The Directors have laid down an adequate system of Internal Financial
Controls to be followed by the Company and such Internal Financial Controls are adequate
and operating efficiently; f) The Directors have devised proper systems to ensure
compliance with the provisions of all applicable laws and that such systems were adequate
and were operating effectively.
ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
The Company has designed and implemented a process driven framework for
Internal Financial Controls ("IFC") within the meaning of the explanation to
Section 134(5)(e) of the Companies Act, 2013. For the year ended 31st March 2023, the
Board is of the opinion that the Company has sound IFC commensurate with the nature and
size of its business operations and operating effectively and no material weakness exists.
The Company has a process in place to continuously monitor the same and identify gaps, if
any, and implement new and/or improved controls wherever the effect of such gaps would
have a material effect on the Company's operations.
DEPOSITORY SYSTEM:
As the members are aware, the Company's shares are compulsorily
tradable in electronic form. As on 31st March 2023, 99.02% of the Company's total
paid up capital representing 1,39,16,53,296 shares are in dematerialized form.
Pursuant to amendments in SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, requests for effecting transfer of securities in physical
form, shall not be processed by the Company and all requests for transmission,
transposition, issue of duplicate share certificate, claim from unclaimed suspense
account, renewal/exchange of securities certificate, endorsement, sub-division/split of
securities certificate and consolidation of securities certificates/folios need to be
processed only in dematerialized form. In such cases, the Company will issue a letter of
confirmation, which needs to be submitted to Depository Participant(s) to get credit of
the securities in dematerialized form. Shareholders desirous of availing these services
are requested to refer to the detailed procedure for availing these services provided on
the website of the Company at
https://investors.larsentoubro.com/shareholder-services.aspx. The Company has availed a
special contingency insurance policy towards the risks arising out of the requirements
relating to issuance of duplicate securities, pursuant to SEBI Circular dated 25th May
2022.
In view of the numerous advantages offered by the Depository system as
well as to avoid frauds, members holding shares in physical form are advised to avail of
the facility of dematerialization from either of the Depositories.
In adherence to SEBI's circular to enhance the due-diligence for
dematerialization of the physical shares, the Company has provided the static database of
the shareholders holding shares in physical form to the depositories which would augment
the integrity of its existing systems and enable the depositories to validate any
dematerialization request.
TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND:
The Company has been regularly sending communications to members whose
dividends are unclaimed requesting them to provide/update bank details with Registrar and
Transfer Agents (RTA)/Depository Participants/Company, so that dividends paid by the
Company are credited to the investors' account on time. Efforts are also made by the
Company in co-ordination with the RTA to locate the shareholders who have not claimed
their dues.
Despite these efforts, an amount of ? 10.84 crore which was due and
payable and remained unclaimed and unpaid for a period of seven years, was transferred to
Investor Education and Protection Fund (IEPF) as provided in Section 125 of the Companies
Act, 2013 and the rules made thereunder.
Cumulatively, the amount transferred to the said fund was
? 57.64 crore as on 31st March 2023.
In accordance with the provisions of the Section 124(6) of the
Companies Act, 2013 and Rule 6(3)(a) of the Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (‘IEPF Rules'),
the Company has transferred 2,83,301 equity shares of ? 2 each (0.02% of total number of
shares) held by 2,141 shareholders (0.15% of total shareholders) to IEPF. The said shares
correspond to the dividend which had remained unclaimed for a period of seven consecutive
years from the financial year 2014-15. Subsequent to the transfer, the concerned
shareholders can claim the said shares along with the dividend(s) by making an application
to IEPF Authority in accordance with the procedure available on www.iepf.gov.in and on
submission of such documents as prescribed under the IEPF Rules. The detailed procedure
for claiming shares/dividend transferred to IEPF is made available on the Company's
website at https://investors.larsentoubro.com/Investor-FAQ.aspx. The Company sends
specific advance communication to the concerned shareholders at their address registered
with the Company and also publishes notice in newspapers providing the details of the
shares due for transfer to enable them to take appropriate action. All corporate benefits
accruing on such shares viz. bonus shares, etc. including dividend except rights shares
shall be credited to IEPF.
CORPORATE SOCIAL RESPONSIBILITY:
The Company has constituted a Corporate Social Responsibility (CSR)
Committee in terms of the requirements of Section 135 of the Companies Act, 2013 read with
the rules made thereunder.
The CSR policy framework is available on the Company's website at
https://www.larsentoubro.com/corporate/ about-lt-group/corporate-policies/ and the Annual
Action Plan is available on the Company's website at
https://investors.larsentoubro.com/listing-compliance-disclosuresunderstatutes.aspx. A
brief note regarding the Company's initiatives with respect to CSR and the
composition of the CSR Committee is given in Annexure ‘B' - Report on Corporate
Governance forming part of this Board Report. Please refer to Pages 331 and 332 of this
Integrated Annual Report.
The disclosures required to be given under Section 135 of the Companies
Act, 2013 read with Rule 8(1) of the Companies (Corporate Social Responsibility Policy)
Rules, 2014 are given in Annexure ‘C' forming part of this Board Report.
The Chief Financial Officer of the Company has certified that CSR funds
so disbursed for the projects have been utilized for the purposes and in the manner as
approved by the Board.
COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD AND GENERAL MEETINGS:
The Company has complied with Secretarial Standards issued by the
Institute of Company Secretaries of India on Board Meetings and General Meetings.
PROTECTION OF WOMEN AT WORKPLACE:
The Company believes that every woman employee should have the
opportunity to work in an environment free from any conduct which can be considered as
Sexual Harassment.
The Company is committed to treating every employee with dignity and
respect. The Company has formulated a policy on ‘Protection of Women's Rights at
Workplace' as per the provisions of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 and Rules, 2013 (POSH Act and Rules).
The policy is applicable to all L&T establishments located in India. The policy has
been widely disseminated. The Company has constituted Internal Complaints Committees to
ensure implementation and compliance with the provisions of the aforesaid Act and the
Rules.
This Policy encompasses the following objectives:
• To define Sexual Harassment;
• To lay down the guidelines for reporting acts of Sexual
Harassment at the workplace; and
• To provide the procedure for the resolution and redressal of
complaints of Sexual Harassment.
A detailed procedure for making a Complaint, initiating an enquiry,
redressal process and preparation of report within a stipulated timeline is laid out in
the Policy document. The Policy also covers Disciplinary Action for Sexual Harassment. The
Policy is uploaded on the Company's website at
https://www.larsentoubro.com/corporate/ about-lt-group/corporate-policies/.
Training programs and workshops for employees are organised throughout
the year. The orientation programs for new recruits include awareness sessions on
prevention of sexual harassment and upholding the dignity of employees. Specific programs
have been created on the digital platform to sensitize employees to uphold the dignity of
their colleagues and prevention of sexual harassment. During FY 2023, about 12,473
employees have undergone training through the programs/ workshops including the awareness
sessions held on digital platform. There were 2 complaints received during the FY 2023.
Both the complaints were redressed as per the provisions of the POSH Act and Rules.
OTHER DISCLOSURES:
• ESOP Disclosures: There has been no material change in the
Employee Stock Option Schemes (ESOP schemes) during the current financial year.
The disclosure relating to ESOPs required to be made under the
provisions of the Companies Act, 2013 and the rules made thereunder and the Securities and
Exchange Board of India (Share Based Employee Benefit and Sweat Equity) Regulations, 2021
(SBEB Regulations) is provided on the website of the Company
https://investors.larsentoubro.com/listing-compliance-agm.aspx.
A certificate obtained from the Secretarial Auditors, confirming that
the ESOP Schemes of the Company are in compliance with the SBEB Regulations and that the
Company has complied with the provisions of the Companies Act, 2013 is also provided in
Annexure ‘B' forming part of this Report.
• Corporate Governance: Pursuant to
Regulation 34 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, a Report on Corporate Governance and a certificate
obtained from the Statutory Auditors confirming compliance with Corporate Governance
requirements provided in the aforesaid Regulations, are provided in Annexure ‘B'
forming part of this Report.
• Business Responsibility and Sustainability Reporting: As per
Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015, the Business Responsibility and Sustainability Report forms a part of this
Integrated Annual Report (refer pages 240 to 284).
• Integrated Reporting: The Company is complying with the
applicable requirements of the Integrated Reporting Framework. The Integrated Report
tracks the sustainability performance of the organization and its interconnectedness with
the financial performance, showcasing how the Company is adding value to its stakeholders.
The Integrated Report forms a part of this Integrated Annual Report.
• Annual Return: The Annual Return of the Company for the FY 2023
is available on our website
https://investors.larsentoubro.com/listing-compliance-agm.aspx.
• Statutory Compliance: The Company has adequate systems and
processes in place to comply with all applicable laws and regulations, pay applicable
taxes on time and ensures statutory CSR spend.
• MSME: The Company has registered itself on Trade Receivables
Discounting System platform (TReDS) through the service provider Receivables Exchange of
India Limited. The Company complies with the requirement of submitting a half yearly
returns to the Ministry of Corporate Affairs within the prescribed timelines.
• IBC: There are no proceedings pending against the Company under
the Insolvency and Bankruptcy Code, 2016.
• KYC registration for holders of physical securities: As per SEBI
circular dated 16th March 2023, the Company has sent notice to all holders of physical
securities asking them to furnish their PAN, details of
Nomination, Contact details (viz. address, mobile and E-mail), Bank
Account details and specimen signature ("KYC information") to KFin Technologies
Limited (RTA) on or before 30th September 2023. In case the shareholders fail to update
KYC Information on or before 30th September 2023, their folios shall be frozen by the RTA
as per above SEBI Circular and such shareholders will be eligible for payment of dividend
or lodging any grievance or availing any service request from the RTA only after
furnishing the KYC information as specified above.
All shareholders of the Company holding shares in physical form are
requested to update their KYC information with RTA at the earliest. The relevant forms for
updating the KYC information are provided on the website of the Company at
https://investors.larsentoubro.com/ DownloadableForms.aspx.
• Reporting of fraud: The Auditors of the Company have not
reported any instances of fraud committed against the Company by its officers or employees
as specified under Section 143(12) of the Companies Act, 2013.
• Remuneration received by Whole time Director from subsidiary
company: Mr. D. K. Sen, Whole-time Director of the Company (till 7th April 2023) is also
the Managing Director of L&T Infrastructure Development Projects Limited (L&T
IDPL), a subsidiary of the Company. During the year 2022-23, part of the remuneration paid
to Mr. Sen was charged to L&T IDPL. Accordingly, the Company has recovered an amount
of ? 2 crore from L&T IDPL for remuneration paid to Mr. Sen.
VIGIL MECHANISM:
The Company has a Whistle Blower Policy in place since 2004. The Policy
has been modified to meet the requirements of Vigil Mechanism under the Companies Act,
2013 and Regulation 22 of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. The Whistle Blower Policy is available on the Company's website
https://www.larsentoubro.com/corporate/about-lt-group/ corporate-policies/.
Also see pages 333 and 334 forming part of Annexure ‘B' of
this Board Report.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS:
During the year under review, there were no material and significant
orders passed by the regulators or courts or tribunals impacting the going concern status
and the Company's operations in future.
CONSOLIDATED FINANCIAL STATEMENTS:
Your Directors are pleased to attach the Consolidated Financial
Statements pursuant to Section 129(3) of the Companies Act, 2013 and Regulation 34 of the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, prepared in
accordance with the provisions of the Companies Act, 2013 and the Indian Accounting
Standards (Ind AS).
AUDIT REPORT:
The Auditors' report to the Shareholders does not contain any
qualification, observation or disclaimer or adverse remark.
SECRETARIAL AUDIT REPORT:
The Secretarial Audit Report issued by M/s. S. N. Ananthasubramanian
& Co., Company Secretaries is attached as Annexure ‘E' forming part of this
Board Report. The Secretarial Audit Report does not contain any qualification, reservation
or disclaimer or adverse remark.
AUDITORS:
M/s. Deloitte Haskins & Sells LLP are the Statutory Auditors of the
Company and shall hold office till the conclusion of 80th Annual General Meeting of the
Company.
The Auditors have confirmed that they have subjected themselves to the
peer review process of Institute of Chartered Accountants of India (ICAI) and hold valid
certificate issued by the Peer Review Board of the ICAI. The Audit Committee reviews the
independence and objectivity of the Auditors and the effectiveness of the Audit process.
The Auditors attend the Annual General Meeting of the Company. Also see
pages 334 and 335 forming part of Annexure ‘B' of this Board Report.
COST AUDITORS:
The provisions of Section 148(1) of the Companies Act, 2013 are
applicable to the Company and accordingly the Company has maintained cost accounts and
records in respect of the applicable products for the year ended 31st March 2023.
Pursuant to the provisions of Section 148 of the Companies Act, 2013
and as per the Companies (Cost Records and Audit) Rules, 2014 and amendments thereof, the
Board, on the recommendation of the Audit Committee, at its meeting held on 10th May 2023,
has approved the appointment of M/s. R. Nanabhoy & Co., Cost Accountants, as the Cost
Auditors for the Company for the financial year ending 31st March 2024 at a remuneration
of ? 17 lakhs plus taxes and out of pocket expenses.
A proposal for ratification of remuneration of the Cost Auditor for the
FY 2024 is placed before the Shareholders for approval in the ensuing Annual General
Meeting.
The Report of the Cost Auditors for the financial year ended 31st March
2023 is under finalization and shall be filed with the Ministry of Corporate Affairs
within the prescribed period.
ACKNOWLEDGEMENT:
The Directors take this opportunity to thank the Members, Customers,
Supply Chain Partners, Employees, Financial Institutions, Banks, Central and State
Government authorities, Regulatory Authorities, Stock Exchanges and various other
stakeholders for their continued co-operation and support to the Company. Your Directors
also wish to record their appreciation for the continued co-operation and support received
from the Joint Venture Partners and Associates.
For and on behalf of the Board
A.M. NAIK
Group Chairman
(DIN: 00001514)
Date : 10th May 2023 Place : Mumbai
Larsen & Toubro Ltd
Company Background
| Incorporation Year | 1946 |
| Registered Office | L&T House,Ballard Estate
Mumbai,Maharashtra-400001 |
| Telephone | 91-22-67525656,Managing Director |
| Fax | 91-22-67525893 |
A M NaikS N Subrahmanyan| Company Secretary | Sivaram Nair A |
| Auditor | Deloitte Haskins & Sells LLP |
| Face Value | 2 |
| Market Lot | 1 |
| Listing | BSE,London,Luxembourg,MSEI ,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
Larsen & Toubro Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| A M Naik | Group Chairman | 2023 |
| M M Chitale | Non-Exec. & Independent Dir. | 2023 |
| S N Subrahmanyan | Managing Director & CEO | 2023 |
| R Shankar Raman | Whole Time Director & CFO | 2023 |
| M Damodaran | Non-Exec. & Independent Dir. | 2023 |
| Vikram Singh Mehta | Non-Exec. & Independent Dir. | 2023 |
| Adil Zainulbhai | Non-Exec. & Independent Dir. | 2023 |
| Subramanian Sarma | Whole Time Director & SeniorVP | 2023 |
| M V Satish | Whole Time Director & SeniorVP | 2023 |
| Sanjeev Aga | Non-Exec. & Independent Dir. | 2023 |
| Narayanan Kumar | Non-Exec. & Independent Dir. | 2023 |
| Hemant Bhargava | Nominee (LIC) | 2023 |
| Sivaram Nair A | Company Sec. & Compli. Officer | 2023 |
| SUDHINDRA VASANTRAO DESAI | Whole Time Director & SeniorVP | 2023 |
| T Madhava Das | Whole Time Director & SeniorVP | 2023 |
| Preetha Reddy | Independent Director | 2023 |
| Pramit Jhaveri | Independent Director | 2023 |
| JYOTI SAGAR | Independent Director | 2023 |
| Rajnish Kumar | Independent Director | 2023 |
| ANIL VITHAL PARAB | Whole Time Director & SeniorVP | 2023 |
| Ajay Tyagi | Independent Director | 2023 |
| P R Ramesh | Independent Director | 2023 |
Larsen & Toubro Ltd
Listing Information
| Listing Information |
|---|
| BSE_SENSEX |
| NIFTY |
| BSE_500 |
| BSE_CG |
| BSE_100 |
| BSE_200 |
| BSEDOLLEX |
| CNX500 |
| CNX100 |
| CNXINFRAST |
| CNX200 |
| BSECARBONE |
| BSEINFRA |
| NFT100EQWT |
| BSEALLCAP |
| BSELARGECA |
| INDUSTRIAL |
| BSEMANUFAC |
| SENSEX50 |
| BSEBHARA22 |
| LMI250 |
| BSEDSI |
| BSELVI |
| BSEMOI |
| NFT50EQWT |
| NFT100LV30 |
| BSE100LTMC |
| NFTYLM250 |
| NFTY100ESG |
| NFTYALV30 |
| NFTY200M30 |
| NF500M5025 |
| NFTYTOTMKT |
| NMIF503020 |
Larsen & Toubro Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Construction & Proj. Activity | Rs. | 0 | 0 | 0 | 103509.82 |
| Manufacturing &Trading Activit | NA | 0 | 0 | 0 | 3582.8 |
| Service Rendered | Rs. | 0 | 0 | 0 | 1421.59 |
| Other Operational Income | NA | 0 | 0 | 0 | 1296.95 |
| Property Development Activity | NA | 0 | 0 | 0 | 444.67 |
| Commission | Rs. | 0 | 0 | 0 | 136.87 |
| Engineering & Service Fees | NA | 0 | 0 | 0 | 108.28 |
| Nuclear Purpose Equipment | NA | 0 | 0 | 0 | 0 |
| Others | NA | 0 | 0 | 0 | 0 |
| Parts & Accessories for Prime | No | 0 | 0 | 0 | 0 |
| Parts for aircraft & Other Met | No | 0 | 0 | 0 | 0 |
| Powder Metallurgy Products | NA | 0 | 0 | 0 | 0 |
| Compmens/Engineering/Serv Fees | Rs. | 0 | 0 | 0 | 0 |
| Design,dvlp & mfg of airbon Eq | No | 0 | 0 | 0 | 0 |
| Sale of Services | NA | 0 | 0 | 0 | 0 |
| Oil-Crude | Bbl | 0 | 0 | 0 | 0 |
| Portland Cement | MT | 0 | 0 | 0 | 0 |
| Ready Mix Concretes | CuM | 0 | 0 | 0 | 0 |
| Pulp/Paper Making Plant | MT | 0 | 0 | 0 | 0 |
| Glass Bottles & Jars | No | 0 | 0 | 0 | 0 |
| Steel Re-Rolling | MT | 0 | 0 | 0 | 0 |
| Steel Structure-Fabrication | MT | 0 | 0 | 0 | 0 |
| Steel Structure-Fabrication | No | 0 | 0 | 0 | 0 |
| Trans.Line Towers | MT | 0 | 0 | 0 | 0 |
| Gas Containers-Carrying Cap. | Ton | 0 | 0 | 0 | 0 |
| Presstools/Jigs/Fixtures | No | 0 | 0 | 0 | 0 |
| Presstools/Jigs/Fixtures | Rs. | 0 | 0 | 0 | 0 |
| Crown Corks | No | 0 | 0 | 0 | 0 |
| Al.Capsules/RO/ROPP Cap/Others | No | 0 | 0 | 0 | 0 |
| Welding Alloys/Accessories | Rs. | 0 | 0 | 0 | 0 |
| Industrial Machinery | MT | 0 | 0 | 0 | 0 |
| Power Plants | NA | 0 | 0 | 0 | 0 |
| Rubber Process. Machinery | No | 0 | 0 | 0 | 0 |
| Equip./Deaerator-Nuclear Purp. | MT | 0 | 0 | 0 | 0 |
| Plant/Equipment-Nuclear Proj. | MT | 0 | 0 | 0 | 0 |
| Petrol Dispen./Metering Pumps | No | 0 | 0 | 0 | 0 |
| Suspended Particles Drying Pl. | No | 0 | 0 | 0 | 0 |
| Cement Machinery | No | 0 | 0 | 0 | 0 |
| Bottling-High Speed | No | 0 | 0 | 0 | 0 |
| Packaging Machinery | Rs. | 0 | 0 | 0 | 0 |
| Earthmoving Machinery | No | 0 | 0 | 0 | 0 |
| Scrapper/Bulldozer/Ripper | No | 0 | 0 | 0 | 0 |
| Road Rollers/Hot Mix Plants | No | 0 | 0 | 0 | 0 |
| Dairy Machinery & Equipment | No | 0 | 0 | 0 | 0 |
| Feed Milling Plants & Grain | No | 0 | 0 | 0 | 0 |
| Food Processing Equipment | MT | 0 | 0 | 0 | 0 |
| Sugarcane/Beet diffusion Plant | No | 0 | 0 | 0 | 0 |
| Chemical Plant & Machinery | Ton | 0 | 0 | 0 | 0 |
| Valves & Accessories | NA | 0 | 0 | 0 | 0 |
| Valves-Steel Plant | No | 0 | 0 | 0 | 0 |
| Defence Equipments | No | 0 | 0 | 0 | 0 |
| Electrical Items-Miscellaneous | No | 0 | 0 | 0 | 0 |
| Electronic Devices | No | 0 | 0 | 0 | 0 |
| Switchgears | No | 0 | 0 | 0 | 0 |
| Relays | No | 0 | 0 | 0 | 0 |
| Control & Relay Panels | No | 0 | 0 | 0 | 0 |
| Indl.Electronic Control Panels | No | 0 | 0 | 0 | 0 |
| Commercial Ships | No | 0 | 0 | 0 | 0 |
| Ship Auxillaries & Components | MT | 0 | 0 | 0 | 0 |
| Electro Surgical Unit & Acces. | No | 0 | 0 | 0 | 0 |
| Patient Monitoring Systems | No | 0 | 0 | 0 | 0 |
| Ultrasound Eqpts./Access. | No | 0 | 0 | 0 | 0 |
| Electricity meters | No | 0 | 0 | 0 | 0 |