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Larsen & Toubro Limited

L&T House, N. M. Marg, Ballard Estate, Mumbai 400 001, India.
Tel : 1800 2094545 – Toll Free (India)

Tel : +91 22 6177 4200

Email :

Investor Queries & FAQs

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FAQs

Company Background and Overview
 
1. Describe Larsen & Toubro Limited as an organization?
 
A. Larsen & Toubro Limited (L&T) is India's largest engineering, construction, manufacturing and technology conglomerate with additional interests in electrical & automation, Information Technology and other diversified businesses. A strong customer-focused approach and the constant quest for top-class quality have enabled the Company to attain and sustain leadership position over the last six decades. Many of the engineering projects executed by L&T have set new benchmarks in terms of scale, sophistication and speed.
 
2. How is the business of L&T Group organized?
 
A. The Company's business consists of :
 
  Construction
 
  Hydrocarbon
 
  Heavy Engineering
 
  Power Projects
 
  Electrical & Automation
 
  Machinery and Industrial Products
 
  IT & Engineering Services
 
  Financial Services
 
  Infrastructure Projects
 
  Shipbuilding
     
  Railway Projects
 
3. Which are the key verticals of operations?
 
A.

In the engineering & construction business, L&T operates in key verticals including hydrocarbon, infrastructure, power, minerals, defense, nuclear power and aerospace, water and civil structures.

The Electrical & Automation business is engaged in the business of low and medium voltage Switchgear products, Electrical systems, Energy meters, Medical equipment,  Automation solutions and Enterprise networking.

The Machinery & Industrial Products business does manufacturing & sales of machinery for paper & mining industry and rubber processing machinery. It also does trading and servicing of products manufactured by various associates, i.e., construction & hydraulic equipment, industrial valves, welding & industrial products.

Larsen & Toubro Infotech Limited, a 100 % subsidiary of Larsen & Toubro Limited, offers IT solutions and services in verticals like Manufacturing, Banking & Securities, Insurance, Energy & Petrochem, Utilities, Communication & Embedded Systems.

L&T Infrastructure Development Projects Limited (LTIDPL), works promotes / invests in Public Private Partnerships (PPPs) for various infrastructure projects. The Company is in the business of identifying & developing infrastructure projects, operation & maintenance of these projects and providing related advisory services.

 
Operations and Performance of L&T
 
1.
 
A.

To read L&T's financial highlights, please click here.

 
2.
 
A. Besides having offices and employing a direct sales force, L&T has developed a strong network of agents across the globe to effectively carry out the business development related activities. The company regularly participates in various international seminars, and industry conventions, which enable L&T showcase its technical capabilities and core strengths along with leveraging client references.
 
3. Give us an overview of the L&T offices?
 
A.

L&T's corporate headquarters is located in South Mumbai. It has a strong foothold in the domestic market through area offices and a branch network. In addition to a strong domestic presence, L&T has a global presence in more than 45 countries.

L&T has key manufacturing facilities at 18 locations in India - Mumbai, Hazira, Vadodara, Pithampur, Chennai, Mysore, Bangalore, Coimbatore to name a few.

Manufacturing processes of standard products are highly automated. Manufacturing centers in India have amenities like canteen, a medical dispensary as well as recreation facilities. L&T offices are generally landscaped, open, campuses that provide a "cocoon of excellence" in which L&T employees can concentrate on providing world-class services for demanding clients in developed markets.

4.
 
A.

L&T faces both domestic & international competition under various segments in which it operates. The competitors vary from segment to segment.

L&T's major competitors in the Hydrocarbon and Electrical & Automation businesses include:

 
 
Oil & Gas Power Construction Electrical & Electronics
HHI BHEL HCC Schneider
Samsung GB Engg-Ansaldo Gammon Siemens
NPCC JSW-Toshiba GMR ABB
JR Mcdermott Bharat Forge - Alstom IVRCL -
 
5. What are L&T's quality processes and metrics?
 
A.

A majority of L&T's processes are ISO certified and comparable with the best in the world.

The company has an on-time/on-budget project completion rate higher than the average for its industry, which translates to highly predictable construction & engineering services delivery for its clients.

 
6. What is the recruitment process in L&T like?
 
A. L&T's employment policies and systems radiate from a single principle - belief in people. People are our most valued asset - our core strength. Employees gain a level of freedom that provides security, satisfaction and, most importantly, a sense of professional fulfillment.
 
  As per L&T's recruitment policy, Fresh Engineering Graduates, Post Graduates & Diploma Holders are selected at corporate levels through campus interviews and/or through advertisements only during specific periods. L&T visits a set of premier engineering colleges and management schools campuses each year for recruitment. The company also does active lateral recruitment through various reputed HR agencies and Internal referral programs.
 
7. What training programs are organized by L&T for its employees?
 
A.

Fresh engineers are taken as 'Graduate Engineer Trainees' (GETs) for a probation period of 1 year during which they go through rigorous on-site training. Training program usually focuses on generic principles of engineering and construction, quality processes and imparts training in specific contemporary technologies.

In addition to specific training programs for engineers, there are several other training programs across various functional areas such as finance, strategy, leadership, marketing along with soft skills programs, etc.

 
8. What is the background of the management team of the company?
 
A. Detailed management biographies can be found in the company's Annual Reports. In summary, majority of the senior management team are qualified from some of the premier engineering, accountancy and / or management institutes in India.
 
Corporate Governance
 
1. What is the composition of the board? What are the different committees?
 
A.

The L&T Board comprises a Chairman and Managing Director,  Whole-time Directors and independent External Directors. The External Directors are respected professionals in the area of business, strategy, finance, law and public policy.

The Board has three committees - Audit, Nomination & Compensation, Shareholders' Grievance Committee. These committees meet regularly and Annual Report to shareholders contain reports on their functioning during the year.

 
2. What are the company's insider trading norms? Does the company have a blackout period?
 
A. L&T's insider trading guidelines are on par with the best corporations in the world. All designated employees are required to comply with these guidelines and need to get the approval of the Compliance Officer before trading in the company's securities beyond prescribed limits. Employees of the company are forbidden from dealing in the company's securities from the end of a quarter till 1 day after the declaration of quarterly results.
 
3. With which International Corporate Governance Standards does the company comply?
 
A. L&T substantially complies with the following Corporate Governance Standards:
 
 
  • Recommendations of the US SEC's Blue Ribbon committee on Corporate Governance.
  • Euroshareholders Corporate Governance Guidelines 2000.
  • Generally accepted Corporate Governance Guidelines of Australia, Canada, France, Germany, Japan and the United Kingdom
  • United Nations Global Compact Programme.
 
Investor Relations
 
1. On which Stock Exchanges are L&T shares listed?
 
A. L&T shares are listed on both the leading Stock Exchanges in India viz. the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange Limited (NSE). L&T Global Depository Receipts (GDR) are listed on Luxembourg Stock Exchange at Societe de la Bourse de Luxembourg, 11 Avenue de la Porte - Neuve, L-2227 Luxembourg.
 
2. What is the paid-up share capital of L&T?
 
A. The paid-up share capital of the Company as on March 31, 2012 is Rs. 122.56 crore comprising 61,27,79,461 equity shares of Rs. 2 each. 59,52,14,789 equity shares of the Company, representing 97.19 % of the Company's paid up capital, as on March 31, 2012 are in dematerialised form.
 
3. Are L&T's Investor Kit and Investor Presentation available to retail investors?
 
A.

L&T believes in treating all investors, large and small, alike. Investor kit and investor presentation are available on the web site. For the latest Investor presentation just click on the link below:

L&T Investor Presentation

 
4. Does L&T participate in broker-sponsored conferences? Are L&T's presentations at such conferences web-cast?
 
A. L&T regularly participates at broker-sponsored conferences. Most of presentations made during such conferences are posted on the website, especially where material discussions of the company's performance take place.
 
5. Does L&T's management go on non-deal road-shows?
 
A. L&T's senior management occasionally goes on non-deal road shows. Presentations used at such road-shows are posted on the website too.
 
6. Does L&T conduct in-house analyst meetings? Are these open to the public at large?
 
A. L&T conducts an annual Analyst Meet bi-annually, to which buy and sell side analysts are invited to the event. Presentations are available on the web-site for the benefit of the general public.
 
7. Does L&T conduct a quarterly conference call with management to discuss quarterly results? Is this open to the public?
 
A. L&T either conducts a quarterly conference call or organises an analyst meet after announcing each quarter's results where the equity research analysts participate.
 
8. What is the dividend payment policy of L&T?
 
A.

The boards of directors review the dividend policy periodically. L&T pays a dividend because the company's investors in India and abroad view this as an important market signal of the management's confidence in the future.

  • For the financial year 2010-11 - Rs. 14.50 per share of Rs. 2/- each
  • For the financial year 2009-10 - Rs. 12.50 per share of Rs. 2/- each
  • For the Financial year 2008-09 - Rs. 10.50 per share of Rs. 2/- each (On the expanded share capital post-bonus issue of 1:1 during the year 2008)
  • For the financial year 2007-08 - Rs. 17 per share of Rs. 2/- each
  • For the financial year 2006-07 - Rs. 13 per share of Rs. 2/- each
  • For the financial year 2005-06 - Rs. 22 per share of Rs. 2/- each
  • For the financial year 2004-05 - Rs. 17.5 per share of Rs. 2/- each
  • Special Dividend for the financial year 2004-2005 - Rs.10.00 per share of Rs. 2/- each
  • For the financial year 2003-2004 - Rs.16.00 per share of Rs. 2/- each
  • For the financial year 2002-2003 - Rs. 7.50 per share of Rs.10/- each
  • For the financial year 2001-2002 - Rs. 7.00 per share of Rs.10/- each
 
9. Who are the custodian and depository for the GDR program?
 
A. CUSTODIAN
Citibank, N.A. 81 Worli,
Dr. Annie Besant Road,
Mumbai 400 018, India.
 
  DEPOSITORY
Citibank, N.A.
388 Greenwich Street,
New York, New York 10013,
U.S.A.
 
10. Whom can the investors contact, with respect to their questions or requests?
 
A. For general enquiries, please contact:
 
  For all Investors'/Deposits related queries:
Larsen & Toubro Limited,
L&T House, Ballard Estate,
Mumbai 400 001.
Tel :+91 22 67525784 / 611
Fax : +91 22 67525893
 
  To enable investors, across the country and abroad, to register their complaints through a single centralised exclusive e-mail ID, the Company has designated a new e-mail ID, viz.: igrc@Larsentoubro.com