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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; Hydrocarbon; Power; Heavy Engineering; Defence Engineering; and Others. The Infrastructure segment comprises of engineering and construction of buildings and factories, transportation infrastructure, heavy civil infrastructure, power transmission and distribution and water and renewable energy projects. 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 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 Defence Engineering segment comprises of design, development, and serial production and through life-support of equipment, systems and platforms for Defence and Aerospace sectors; and design, construction, and repair/refit of defence vessels. The Others segment encompasses realty, smart world, and communication projects, marketing and servicing of construction and mining machinery and parts thereof and manufacture, sale of rubber processing machinery and digital platforms. The company was founded by Henning Holck-Larsen and Soren Kristian Toubro in 1938 and is headquartered in Mumbai, India.

Financial Highlights

Mar 2022 INRUSD
Gross Profit301,559.20M4,047.25M
Operating income218,072M2,926.76M
Income before tax143,835.80M1,930.43M
Net income85,724M1,150.50M
Diluted EPS60.950.81
Dividends Per Share220.29
Total Assets3,256.20B42,971.99M
Total liabilities2,302.46B30,385.55M
Total equity824,076.60M10,875.30M
Operating cash flow174,807.50M2,346.10M
Currency in INRCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 1,189.37B 1,340.69B 1,453.01B 1,354.30B 1,564.32B
Gross Profit 186,040.90M 189,261M 222,048M 289,418.30M 301,559.20M
Operating income 106,124.40M 124,970.20M 138,625.80M 205,511.90M 218,072M
Income before tax 116,391.60M 136,891.20M 133,905.50M 121,963.20M 143,835.80M
Net income 73,698.60M 83,358M 88,944.60M 69,010.30M 85,724M
EBITDA 125,411.70M 144,200.50M 163,248.50M 234,554M 247,551.50M
Diluted EPS 52.48 63.40 67.95 107.70 60.95
Dividends Per Share 16 18 18 18 22
Total Assets 2,448.29B 2,795.26B 3,087.73B 3,157.62B 3,256.20B
Total liabilities 1,847.24B 2,103.25B 2,325.29B 2,278.42B 2,302.46B
Total equity 549,035M 623,748M 667,232.20M 758,685.30M 824,076.60M
Operating cash flow -92,236.80M -67,558.50M 49,058.50M 211,386.90M 174,807.50M
 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 18,449.60M 19,168.41M 20,492.12M 18,243.52M 20,994.89M
Gross Profit 2,885.87M 2,705.94M 3,131.58M 3,898.67M 4,047.25M
Operating income 1,646.20M 1,786.75M 1,955.06M 2,768.39M 2,926.76M
Income before tax 1,805.47M 1,957.19M 1,888.49M 1,642.93M 1,930.43M
Net income 1,143.21M 1,191.80M 1,254.40M 929.61M 1,150.50M
EBITDA 1,945.39M 2,061.69M 2,302.32M 3,159.61M 3,322.40M
Diluted EPS 0.81 0.90 0.95 1.45 0.81
Dividends Per Share 0.24 0.25 0.25 0.24 0.29
Total Assets 37,537.97M 40,350.22M 40,815.40M 43,187.87M 42,971.99M
Total liabilities 28,322.49M 30,360.91M 30,737.04M 31,162.76M 30,385.55M
Total equity 8,417.98M 9,003.94M 8,819.84M 10,376.78M 10,875.30M
Operating cash flow -1,430.78M -965.91M 691.88M 2,847.53M 2,346.10M

Valuation Measures

Mar 2022
Operating margin13.94%
Profit margin5.47%

Key executives

  • Chief Executive Officer, MD & Executive Director: Sekharipuram Narayan Subrahmanyan
  • Chief Financial Officer & Executive Director: Ramamurthi Shankar Raman
  • Secretary & Compliance Officer: A. Sivaram Nair
  • Senior Vice President & Head-Corporate Centre: Hasit Bhatathkumar Joshipura
  • Executive Director, Senior EVP-Buildings & Metals: Maddur Venkata Rao Satish


  • L&T Employee Welfare Foundation (13.7%)
  • Life Insurance Corporation of India (Investment Portfolio) (11.8%)
  • SBI Funds Management Pvt Ltd. (4.2%)
  • ICICI Prudential Asset Management Co. Ltd. (2.5%)
  • GIC Pte Ltd. (Investment Management) (2.4%)
  • HDFC Asset Management Co. Ltd. (Invt Mgmt) (2.1%)
  • General Insurance Corp. of India (Invt Port) (1.7%)
  • The Vanguard Group, Inc. (1.5%)
  • Nippon Life India Asset Management Ltd. (Invt Mgmt) (1.3%)
  • Kotak Mahindra Asset Management Co. Ltd. (1.2%)

Contact Details

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Last Updated on 4 Oct, 2022

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