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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 2019 INRUSD
Gross Profit203,621.80M2,911.26M
Operating income133,508.60M1,908.82M
Income before tax145,809.20M2,084.69M
Net income89,051.30M1,273.20M
Diluted EPS63.400.90
Dividends Per Share180.25
Total Assets2,803.12B40,463.78M
Total liabilities2,111.11B30,474.48M
Total equity623,748M9,003.94M
Operating cash flow-67,122.50M-959.67M
Currency in INRCurrency in USD

Historical Data

 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 895,139M 1,006.57B 1,091.25B 1,189.37B 1,398.26B
Gross Profit 120,344M 142,055.70M 157,403.30M 186,040.90M 203,621.80M
Operating income 67,588.50M 84,551.10M 87,643.90M 106,124.40M 133,508.60M
Income before tax 72,172.40M 80,196.20M 88,873.60M 116,391.60M 145,809.20M
Net income 47,648.20M 42,328.80M 60,412.30M 73,698.60M 89,051.30M
EBITDA 92,124.80M 102,142.60M 111,343.20M 125,411.70M 154,348.60M
Diluted EPS 33.98 30.18 28.70 52.48 63.40
Dividends Per Share 10.83 12.16 14 16 18
Total Assets 1,966.68B 1,957.18B 2,137.86B 2,448.29B 2,803.12B
Total liabilities 1,507.60B 1,486.44B 1,601.59B 1,847.24B 2,111.11B
Total equity 399,420.70M 441,803.60M 500,633.20M 549,035M 623,748M
Operating cash flow -41,237.50M -50,858.20M 56,392.70M -92,236.80M -67,122.50M
 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 14,639.98M 15,374.47M 16,273.52M 18,449.60M 19,991.55M
Gross Profit 1,968.22M 2,169.75M 2,347.30M 2,885.87M 2,911.26M
Operating income 1,105.40M 1,291.43M 1,307.00M 1,646.20M 1,908.82M
Income before tax 1,180.37M 1,224.91M 1,325.34M 1,805.47M 2,084.69M
Net income 779.28M 646.52M 900.90M 1,143.21M 1,273.20M
EBITDA 1,506.69M 1,560.12M 1,660.42M 1,945.39M 2,206.78M
Diluted EPS 0.55 0.46 0.42 0.81 0.90
Dividends Per Share 0.17 0.18 0.20 0.24 0.25
Total Assets 31,426.02M 29,554.61M 32,923.15M 37,537.97M 40,463.78M
Total liabilities 24,090.33M 22,446.27M 24,664.60M 28,322.49M 30,474.48M
Total equity 6,382.43M 6,671.50M 7,709.75M 8,417.98M 9,003.94M
Operating cash flow -674.43M -776.80M 840.96M -1,430.78M -959.67M

Valuation Measures

Mar 2019
Operating margin9.54%
Profit margin6.36%

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 (14.2%)
  • L&T Employee Welfare Foundation (12.2%)
  • HDFC Asset Management Co. Ltd. (Invt Mgmt) (4.5%)
  • SBI Funds Management Pvt Ltd. (2.8%)
  • ICICI Prudential Asset Management Co. Ltd. (2.2%)
  • ICICI Prudential Life Insurance Co. Ltd. (Invt Port) (1.8%)
  • General Insurance Corp. of India (Invt Port) (1.7%)
  • Reliance Nippon Life Asset Management Ltd. (Invt Mgmt) (1.6%)
  • Nomura Asset Management Singapore Ltd. (1.4%)
  • Kotak Mahindra Asset Management Co. Ltd. (1.3%)

Contact Details

Related Companies

  • Larsen & Toubro Engineering & Construction Co. Ltd.
  • LTM Ltd. (India)
  • L&T Geostructure LLP
  • Larsen & Toubro Ltd. /Punjab Power Plant/
  • L&T Motors Corp.
  • L&T Valves Ltd
  • L&T Hydrocarbon Engineering Ltd.
  • L&T-Ramboll Consulting Engineers Ltd.
  • L&T Trustee Co. Pvt Ltd.
  • L&T Technology Services Ltd.
  • L&T Urban Development Ltd.
  • L&T Aviation Services Pvt Ltd.
  • Kesun Iron & Steel Co. Pvt Ltd.
  • Bhilai Power Supply Co. Ltd.
  • L&T Sapura Offshore Pvt Ltd.
  • L&T Sapura Shipping Pvt Ltd.
  • L&T Howden Pvt Ltd.
  • L&T Construction Co.
  • L&T Realty Pvt Ltd.
  • L&T Technologies Ltd.
  • L&T Solar Ltd.
  • Larsen & Toubro Infotech Ltd. (India)
  • Vizag IT Park Ltd.
  • L&T Special Steels & Heavy Forgings Pvt Ltd.
  • Hi Tech Rock Products & Aggregates Ltd.
  • Nabha Power Ltd.
  • Larsen & Toubro Infotech Ltd.
  • Larsen & Toubro Ltd. /Electrical & Automation Business/
  • Larsen & Toubro International FZE
  • L&T Natural Resources Ltd.


  • Reliance Infrastructure Limited
  • McDermott International, Inc.
  • Petrofac Limited
  • Alarko Holding A.S.
  • Landis+Gyr Group AG
  • Information Services Group, Inc.
Last Updated on 27 Mar, 2020

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