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Industrial Services

Larsen & Toubro Ltd.

Company Background

Larsen & Toubro is India's largest construction and engineering company. It builds industrial plants and ships, and is also involved in the development of infrastructure such as roads and railroads. The company boasts an order backlog worth more than 1 trillion rupees.

The company was established in 1938 in Mumbai as a trader of dairy equipment by two Danish men, Henning Holck-Larsen and Soren Kristian Toubro. It began to engage in ship repair during World War II and gradually expanded its business to cover construction and engineering.

Larsen & Toubro grew rapidly in the 1960s and came to rank among India's top companies in the 1970s. Abroad, the company has been involved in industrial plant construction and airports in the Middle East.

The company has recently landed a railroad construction contract as part of the government-backed Delhi-Mumbai Industrial Corridor (project aimed at developing industrial zones spanning across six states in India which would spur economic development in the region and develop industries), which will link the two cities with new industrial zones and large-scale infrastructure.

As the company expanded, the founders sold off their shareholdings. Larsen & Toubro is one of few large Indian corporations whose management is not dominated by any family clan. While Life Insurance Corp. of India, a state-owned entity, is the largest shareholder, no one owns a controlling stake in the company. It faced a takeover bid from Indian conglomerate Reliance Group in the 1980s.

Business Summary

Larsen & Toubro Ltd. is an investment holding company, which engages in technology, engineering, construction, manufacturing, and financial activities. It operates through the following business segments: Infrastructure; Power; Heavy Engineering; Electrical and Automation; Hydrocarbon; Information Technology and Technology Services; Financial Services; Developmental Projects; and Others. The Infrastructure segment comprises of engineering and construction of building and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution and water and renewable energy projects. The Power segment includes turnkey solutions for coal-based and gas-based thermal power plants including power generation equipment with associated systems and balance-of-plant packages. The Heavy Engineering segment manufactures and distributes custom designed, engineered critical equipment & systems to core sector industries like fertiliser, refinery, petrochemical, chemical, oil & gas, thermal & nuclear power, aerospace and defence. The Electrical and Automation segment involves the manufacture and sale of low and medium voltage switchgear components, custom built low and medium voltage switchboards, electronic energy meters protection systems and control and automation products. The Hydrocarbon segment provides engineering procurement, construction and commissioning solutions for the global oil and gas Industry from front-end design through detailed engineering, modular fabrication, procurement, project management, construction, installation and commissioning. The Information Technology and Technology Services segment offers information technology and integrated engineering services. The Financial Services segment relates to the retail and corporate finance, housing finance, infrastructure finance, general insurance, asset management of mutual fund schemes and related advisory services. The Developmental Projects segment develops, operates, and maintains basic infrastructure projects, toll collection including annuity based projects, power development, development and operation of port facilities and providing related advisory services. The Others segment encompasses metallurgical and material handling systems, realty, shipbuilding and integrated engineering services. The company was founded by Henning Holck-Larsen and Soren Kristian Toubro in 1938 and is headquartered in Mumbai, India.

Financial Highlights

Mar 2020 INRUSD
Gross Profit222,048M3,131.58M
Operating income138,625.80M1,955.06M
Income before tax133,905.50M1,888.49M
Net income88,944.60M1,254.40M
Diluted EPS67.950.95
Dividends Per Share180.25
Total Assets3,087.73B40,815.40M
Total liabilities2,325.29B30,737.04M
Total equity667,232.20M8,819.84M
Operating cash flow49,058.50M691.88M
Currency in INRCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 1,006.57B 1,091.25B 1,189.37B 1,340.69B 1,453.01B
Gross Profit 142,055.70M 157,403.30M 186,040.90M 189,261M 222,048M
Operating income 84,551.10M 87,643.90M 106,124.40M 124,970.20M 138,625.80M
Income before tax 80,196.20M 88,873.60M 116,391.60M 136,891.20M 133,905.50M
Net income 42,328.80M 60,412.30M 73,698.60M 83,358M 88,944.60M
EBITDA 102,142.60M 111,343.20M 125,411.70M 144,200.50M 163,248.50M
Diluted EPS 30.18 28.70 52.48 63.40 67.95
Dividends Per Share 12.16 14 16 18 18
Total Assets 1,957.18B 2,137.86B 2,448.29B 2,795.26B 3,087.73B
Total liabilities 1,486.44B 1,601.59B 1,847.24B 2,103.25B 2,325.29B
Total equity 441,803.60M 500,633.20M 549,035M 623,748M 667,232.20M
Operating cash flow -50,858.20M 56,392.70M -92,236.80M -67,558.50M 49,058.50M
 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 15,374.47M 16,273.52M 18,449.60M 19,168.41M 20,492.12M
Gross Profit 2,169.75M 2,347.30M 2,885.87M 2,705.94M 3,131.58M
Operating income 1,291.43M 1,307.00M 1,646.20M 1,786.75M 1,955.06M
Income before tax 1,224.91M 1,325.34M 1,805.47M 1,957.19M 1,888.49M
Net income 646.52M 900.90M 1,143.21M 1,191.80M 1,254.40M
EBITDA 1,560.12M 1,660.42M 1,945.39M 2,061.69M 2,302.32M
Diluted EPS 0.46 0.42 0.81 0.90 0.95
Dividends Per Share 0.18 0.20 0.24 0.25 0.25
Total Assets 29,554.61M 32,923.15M 37,537.97M 40,350.22M 40,815.40M
Total liabilities 22,446.27M 24,664.60M 28,322.49M 30,360.91M 30,737.04M
Total equity 6,671.50M 7,709.75M 8,417.98M 9,003.94M 8,819.84M
Operating cash flow -776.80M 840.96M -1,430.78M -965.91M 691.88M

Valuation Measures

Mar 2020
Operating margin9.54%
Profit margin6.12%

Key executives

  • Chief Executive Officer, Executive Director & MD: Sekharipuram Narayan Subrahmanyan
  • Chief Financial Officer & Executive Director: Ramamurthi Shankar Raman
  • Secretary & Compliance Officer: A. Sivaram Nair
  • Senior VP & Head-Electrical & Automation: Hasit Bhatathkumar Joshipura
  • Vice President & Head-Engineering Division: Umayi Kuppusamy Kalyanaramudu


  • Life Insurance Corp of India (14.8%)
  • L&T Employee Welfare Foundation (13.3%)
  • HDFC Asset Management Co. Ltd. (Invt Mgmt) (4.2%)
  • SBI Funds Management Pvt Ltd. (3.7%)
  • GIC Pte Ltd. (Investment Management) (2.2%)
  • General Insurance Corp. of India (Invt Port) (1.7%)
  • ICICI Prudential Asset Management Co. Ltd. (1.6%)
  • ICICI Prudential Life Insurance Co. Ltd. (Invt Port) (1.5%)
  • Kotak Mahindra Asset Management Co. Ltd. (1.3%)
  • Nippon Life India Asset Management Ltd. (Invt Mgmt) (1.1%)

Contact Details

Related Companies

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  • Larsen & Toubro Engineering & Construction Co. Ltd.
  • LTM Ltd. (India)
  • L&T Geostructure LLP
  • Syncordis Software Services India Pvt Ltd.
  • Larsen & Toubro Saudi Arabia LLC
  • Larsen & Toubro Ltd. /Punjab Power Plant/
  • L&T Infrastructure Engineering Ltd.
  • L&T Motors Corp.
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  • L&T Valves Ltd
  • L&T Hydrocarbon Engineering Ltd.
  • L&T-Ramboll Consulting Engineers Ltd.
  • L&T Electricals & Automation Ltd.


  • Actividades de Construccion y Servicios SA
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Last Updated on 30 Sep, 2020

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