Larsen & Toubro Share Price

Company Brief

Larsen & Toubro Ltd is a multinational conglomerate that primarily provides engineering, procurement, and construction (EPC) solutions in key sectors such as Power, Hydrocarbon, Defence, Infrastructure, Process Industries, Information Technology, and Financial Services in both domestic and international markets.

It has a global presence in over 50 countries. For more than eight decades, L&T has maintained leadership in its primary areas of business through a strong, customer-focused strategy and a relentless pursuit of world-class quality.

History

Henning Holck-Larsen and Soren Kristian Toubro, two Danish engineers, created L&T in Bombay (Mumbai) in 1938. Their first Mumbai (Bombay) office was so small that it could only accommodate one of the partners at a time. They represented Danish dairy equipment manufacturers in the early years for a small retainer. However, with the outbreak of World War II in 1939, imports were banned, forcing them to establish a small workshop to handle jobs and provide service facilities.

The necessity to repair and refit ships during the war provided an opportunity for L&T, which resulted in the foundation of a new business, Hilda Ltd., to handle these operations. 

L&T struck an arrangement with Caterpillar Tractor Company, USA, in 1945 to market earthmoving equipment. At the war's end, a huge amount of excess Caterpillar equipment was available at reasonable prices, but the money required was above the partners' ability. This encouraged them to raise additional equity financing, and Larsen & Toubro Private Limited was established on 7th February 1946.

L&T became a public company in December 1950, with a paid-up capital of INR 2 million. In that year, the sales turnover was INR 10.9 million. In 1956, the company's Bombay office relocated to ICI House in Ballard Estate. A decade later, L&T purchased the towering grey-stone structure and renamed it L&T House- it's Corporate Office.

The 1960s were also a period of tremendous growth for the corporation, with the establishment of several new companies, including UTMAL (founded in 1960), Audco India Limited (1961), Eutectic Welding Alloys (1962), and TENGL (1963). (1963). Under the leadership of individuals such as N. M. Desai, S.R. Subramaniam, U. V. Rao, S. D. Kulkarni, and A. M. Naik, the company expanded into a prominent engineering firm in the decades that followed.

Market Capitalisation and Stock Information

Larsen & Toubro Ltd. went public in the year 1950. Since then, the stock has performed well and even stood out as the top performer in its peer groups in recent times. Let's look at some of the facts and figures:

● The market cap stands at INR 218,008 crores as of 28th June 2022.

● The EPS of the share is 61.70 as of 28th June 2022. 

● The Face Value of shares is INR 2 each.

● The Book Value Per Share of the stock is 691.18 as of 28th June 2022. 

Shareholding Pattern

Till March 2022, Larsen & Toubro Ltd.'s shareholding pattern consists of nil shareholding from the promoters. The bifurcation of shareholding of 100% is as follows- FIIs – 22.42%, DIIs- 33.73%, and Public- 43.86%.

Corporate Social Responsibility Information

Larsen and Toubro (L&T) invested INR 150 crore in corporate social responsibility programs in FY21, benefiting 1.21 million people. L&T's CSR team handed over two Integrated Community Development Projects (ICDPs) to the Tamil Nadu government's agriculture department at Kalangal village in Sulur block. This area was previously one of the most water-scarce in the state.

L&T provides economic and high-quality healthcare in urban and rural areas through permanent health centres, mobile medical vans, and free medical care for needy groups. During the COVID-19 pandemic, the firm was at the forefront of relief efforts. L&T delivered 40 oxygen-generating machines to hospitals around India.

Thousands of medical kits, equipment, and several high-quality ambulances were distributed to hospitals and non-governmental organizations working in the healthcare field. L&T purchased and delivered 42 ventilators to civil and dedicated COVID-19 hospitals throughout the country.

L&T reached out to 12 states and spent a significant amount of money on COVID-19 relief in FY21. This was in addition to the INR 150 crore contribution made by the corporation to the PM Cares Fund.

Financial Information

Top Line

Over the last 5 years, the audited financial statements show a leap of INR 26537.86 crores in Larsen & Toubro Ltd.'s total revenue. It was INR 74462.55 crores in 2018, INR 82287.42 crores in 2019, INR 82383.65 crores in 2020, INR 73315.59 crores in 2021 and INR 101000.41 crores in the year ending 2022.

Bottom Line

On the other hand, the profit before tax of Larsen & Toubro Ltd. has increased by Rs. 2746.32 Crores from March 2018 to March 2022. It was Rs. 7262.38 Crores in March 2018, Rs. 9219.46 Crores in March 2019, Rs. 6985.91 Crores in March 2020, Rs. 4437.77 Crores in March 2021, and it grew to Rs. 10008.70 Crores in March 2022.

Net Worth

The net worth of Larsen & Toubro Ltd. has increased in comparison from March 2019 to March 2022. It was INR 50048.42 Cr. In March 2019, INR 52175.35 Cr. In March 2020, INR 60413.54 Cr. In March 2021, and grew to INR 67114.05 Cr. in the Financial year ending March 2022.