1. F INANCIAL R ATIO A NALYSIS OF L ARSEN & T OUBRO L IMITED I NDUSTRY : E NGINEERING Presented By: Jitendra Kumar

2. I NDUSTRY O VERVIEW The Engineering sector is the largest in the overall industrial sectors in India. It is a diverse industry with a number of segments, and can be broadly categorized into two segments, namely, heavy engineering and light engineering.. Most of the leading players are engaged in the production of heavy engineering goods and mainly produces high-value products using high-end technology. Requirement of high level of capital investment poses as a major entry barrier. Consequently, the small and unorganized firms have a small market presence. Leading players in this industry are L&T, ABB, BHEL, Siemens, Thermax, Crompton Greaves, Voltas The light engineering goods segment, on the other hand, uses medium to low-end technology. Entry barrier is low on account of the comparatively lower requirement of capital and technology. The demand in the engineering sector to remain to be healthy primarily on account of the Government’s increased thrust on infrastructure development.

3. C OMPANY O VERVIEW Larsen & Toubro Limited (L&T) is a technology, engineering, power, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector. Leadership position in all its major lines of business. L&T has an international presence, with a global spread of offices and factories. Has strong footprint in the Gulf and in China. Subsidiaries Larsen & Toubro Komatsu Limited Larsen & Toubro Finance Larsen & Toubro Infrastructure Finance L&T – Integrated Engineering Services (IES) Larsen & Toubro Valves Business Group

4. S UMMARY P ROFIT & L OSS A CCOUNT

5. S UMMARY B ALANCE S HEET

6. C OMPUTATION OF R ATIOS (1/2)

7. C OMPUTATION OF R ATIOS (2/2)

8. O BSERVATIONS Other income has jumped from 547 cr to 2185 cr Interest cost has risen 268% Dividend payout ratio has fallen 850% to 625% Bonus shares issued in the ratio of 1 : 1 in 2008 – 2009 115% rise in net current assets Debt service coverage ratio has fallen by 67% over the last 3 years. The view is that the company was conservative when the times were bad and they aggressively ramped up business when the business environment improves Collection period has gone up dramatically by 94% over 3 year period GPM has improved by almost 400 basis points NPM has increased by more than 300 basis points