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L&T to take up restructuring plan today - Views on News from Equitymaster

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L&T to take up restructuring plan today

Jan 6, 2000

The board of Larsen and Toubro (L&T) is to take up a comprehensive restructuring plan at a meeting today. Boston Consulting Group (BCG) has drawn up the restructuring plan. L & T is the largest engineering, procurement and construction (EPC) company (58% of total revenues) in India. The company also has major business interests in cement (24% of total revenues, capacity 12 mtpa), and software.

Under the plan, BCG has suggested that the company exit nine of its existing businesses while retaining six core operating areas heavy engineering and construction, cement, electricals/electronics, finance and information technology. The core businesses are to be retained either within the company or as joint ventures. The businesses to be exited are packaging and consumerables, medical equipment and closed shoes. The company has also been advised to exit four joint ventures - Tractor Engineers, L&T- Komatsu, EWAC Alloys and Audco India. The sell off of the businesses is expected to raise Rs 30 bn.

The restructuring move is a step in the right direction, as it will bring a semblance of focus into the company. Moreover, the fresh funds raised would help the company in reducing its debt burden and also stepping up investment in its core areas of business. BCG's suggestion to retain the high growth areas of infotech and finance will ensure that L&T has a presence in these areas.


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L&T Announces Quarterly Results (4QFY19); Net Profit Up 13.4% (Quarterly Result Update)

May 13, 2019 | Updated on May 13, 2019

For the quarter ended March 2019, L&T has posted a net profit of Rs 39 bn (up 13.4% YoY). Sales on the other hand came in at Rs 449 bn (up 10.5% YoY). Read on for a complete analysis of L&T's quarterly results.

L&T Announces Quarterly Results (3QFY19); Net Profit Up 35.2% (Quarterly Result Update)

Jan 28, 2019 | Updated on Jan 28, 2019

For the quarter ended December 2018, L&T has posted a net profit of Rs 24 bn (up 35.2% YoY). Sales on the other hand came in at Rs 357 bn (up 24.2% YoY). Read on for a complete analysis of L&T's quarterly results.

L&T 2017-18 Annual Report Analysis (Annual Result Update)

Aug 13, 2018 | Updated on Aug 13, 2018

Here's an analysis of the annual report of L&T for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of L&T. Also includes updates on the valuation of L&T.

L&T: Transition Challenges Continue to Have an Effect (Quarterly Results Update - Detailed)

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The readjustment to the continuing impact of demonetisation and the accelerated implementation of GST has upset the business environment and tripped growth in the economy.

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Aug 1, 2017

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