Mumbai, October 15, 2008: Larsen & Toubro Limited (L&T) has reported Gross Sales of Rs. 7776 crore for the quarter ended September 30, 2008, registering an increase of 40% over the corresponding quarter of the previous year. In an environment of global financial turmoil and slow-down in the domestic economy, the Company has performed well by securing fresh orders totaling to Rs. 12453 crore during the quarter – a y-o-y growth of 74%. The share of Order Inflow and Sales from international business at 21% and 19% respectively, bears a testimony of the Company’s growing presence in the international market.

While Profit before Interest and Tax for the quarter ended September 30, 2008 at Rs. 760 crore rose by 35%, Profit after Tax for the quarter at Rs. 460 crore grew by 32%, over the corresponding quarter of the previous year.

For the half year ended September 30, 2008, the Sales revenues at Rs. 14769 crore grew by 46% and Profit After Tax at Rs. 963 crore grew by 33% over the corresponding period of the previous year.

Engineering & Construction Segment

The Segment has reported healthy financials for the quarter ended September 30, 2008. The slew of mega project orders bagged by the segment demonstrates the Company’s pre-eminent position in the market place and reaffirms the trust reposed by the domestic and international clients in its technical supremacy and superior execution skills. The segment Order Inflow, at Rs. 10434 crore registered a growth of 90% over the corresponding quarter of the previous year, with the share of international orders at 22%. The segment revenues at Rs. 5990 crore grew by 41% for the quarter.

Cumulatively, for the half-year period, the segment Order Inflow at Rs. 20950 crore, grew by 53% and segment revenue at Rs. 11531 crore rose by 49% over the corresponding period of the previous year. Most of the Orders under execution are either ahead or in line with the contractual delivery deadlines.

The Engineering and Construction Segment’s ability to ring fence itself against a substantial part of the input cost increases in its projects, through appropriate contractual escalation clauses, enabled it to maintain its margins during the quarter. Timely execution of orders lent an important support in holding the project profitability.

The Segment Order Book as at September 30, 2008 stood at a record high of Rs. 60931 crore, signifying the sustainability of growth momentum in the near to medium term. The share of International orders in the closing Order Book was 17%.

Electrical & Electronics Segment

The Segment posted a revenue growth of 13% at Rs. 760 crore for the quarter, in the face of a severe liquidity crunch in the economy and rising interest cost, adversely impacting the demand for its products & services. Export efforts were stepped up during the quarter to supplement the sluggish domestic market demand, thereby boosting the share of international sales to 16% for the current quarter. The segment profitability for the quarter was under strain, due to higher input costs, lower capacity utilization and competitive pressures constraining the ability to pass through the cost increases to the customers.

Machinery & Industrial Products Segment

The Segment reported revenues of Rs. 685 crore for the quarter ended September 30, 2008, registering a growth of 16% over the corresponding quarter of the previous year. The share of exports stood at 22% for the quarter. Aided partly by rupee depreciation, the Segment realized higher margins from international sales of Valves & Industrial Machinery products during the quarter. It has also been able to maintain the superior margins from domestic markets in the Construction Machinery business, despite the competitive pressures.

Outlook

Given the quality of the Order Book and the brisk inflow of orders so far during the quarter, the Company is confident about meeting its financial goals for the current year. It is closely monitoring the unfolding developments in the global financial markets and the impact of these on its growth plans in the medium term. The Company is gearing up with its mitigation strategies to counter the consequences of investment slowdown, if any, amidst deteriorating credit conditions. The thrust over the past few years on geographical diversification and the efforts towards incubation of synergistic new business lines, such as Power and Railways, is expected to provide adequate business opportunities in the medium to long term.

Background:

L&T is a USD 7 billion technology, engineering and construction company with global operations. It is one of the largest and most respected companies in India’s private sector. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business across seven decades. L&T has distinguished records of achievements including the world’s largest coal gasifier made in India and exported to China, India’s first indigenous hydrocracker reactor, oil and gas platform projects executed to global benchmarks and the world’s largest Continuous Catalyst Regeneration reactor.

Other News

• Tech Mahindra honored with Frost & Sullivan’s 2008 Growth Excellence Award
• Colorful Pandora Necklace at Casijewelry.com
• RAP4 AG1 Paintballs: All Grades – All Purposes – One Ball
• Discount Black Stone from bjbead.com
• Casijewelry.com.Inc launches its new designed Pandora beaded jewelry