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Moneycontrol India :: News :: L&T sees sales growth at 30% in H2 :: Larsen and Toubro :: Results Boardroom :: J P Naik,L&T

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L&T sees sales growth at 30% in H2

2007-10-26 18:57:02 Source : Business Lunch/CNBC-TV18
(Interview Transcript)

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L&T has posted a 73% growth in net profit at Rs 348 crore for the quarter-ended September 2007 as against Rs 201.2 crore in the same quarter last year. Standalone net sales increased by 47% to Rs 5,499.9 crore from Rs 3,736.1 crore. Other income was at Rs 23.3 crore as compared to Rs 111.73 crore.

J P Naik, Whole Time Director, L&T, said the order inflow stood at Rs 17,400 crore in H1. "The international order book stood at 26% in Q2." The company is witnessing continued improvement in operational efficiencies, he said.

Excerpts from CNBC-TV18�s exclusive interview with JP Naik:

Q: What were the core impressive numbers, which had come?

A: There has been impressive growth in order booking, sales, as well as in the profitability. Profits have improved by 73% considering the corresponding period of the previous year. If you take the last six months, i.e. April-September period of the corresponding period this year, the growth is 102%. So, there is a tremendous improvement in terms of operational excellence that we can see.

Q: Your international operations have grown as a percentage number of sales. Why has that happened and do you see an impact of the rupee? On L&T�s imports, that impact is not much. Could you explain that?

A: Our international operations have been about 17-18% of total sales and that is at the same level as of last year. We have maintained our international operations at the same level. A large part of our trade is dollar denominated and therefore exports will get affected when the rupee strengthens. In our case, we have got compensating elements. First, we have imports and second we are also borrowing in foreign currency. Therefore, both cases got to compensate. As far as our operations are concerned, in the first six months there has been no adverse impact due to the strengthening rupee.

Q: Your order book has grown by nearly 26%. You had given a yearly outlook of 25-30%. Do you see that been revised upwards?

A: Whatever earlier we had expected, i.e. 25-30%, will be maintained during the balance period of the year. Also, sales growth will be probably the same at about 30%. We expect margins to be maintained at the same level as what we had achieved over the last year.