TITLE

“FINANCIAL STATEMENT ANALYSIS OF L

AURSEN & TOURBO”
PROJECT REPORT
Submitted By
Aditya (202300)
Gaye Sri (2023003812)
D. Karthik (202300)
Venkata Krishna (202300)
Shiva Prasad (202300)

MBA 1st Year, Section-C (2nd Semester)

MASTER OF BUSINESS ADMINISTRATION

In
Gandhi Institute of Management and
Technology, Hyderabad
Under the guidance of
Dr. Ramesh Bishetti
Assistant Professor
 ACKNOWLEDGEMENT

We wish to take this opportunity to express our deepest gratitude to

Director GITAM School of Business, Hyderabad for granting me permission to
undertake the study. We would like to convey thanks to our project guide Dr
Ramesh Bishetti Assistant Professor for h ready assistance, keen interest, and
valuable suggestions. Finally, it would be unfair if we don’t extend our gratitude
to all our faculties, parents, and all our friends for their active cooperation which
was of great help during the completion of this project process. Without the
support of all the above-mentioned people, this study would not have been
successful. We once again thank you all for your great interest and support
throughout our study.
 INDEX:

S.No. TOPICS PAGES

 ABSTRACT

This report presents a comprehensive financial analysis of Larsen & Toubro

(L&T) Limited, one of India's largest engineering and construction companies,
for the fiscal year 2020-23. The analysis covers key financial ratios, including
liquidity, solvency, profitability, and efficiency ratios, to assess the company's
financial performance and health.
L&T's liquidity ratios indicate a strong ability to meet short-term obligations,
with current and quick ratios above industry averages. Solvency ratios suggest a
stable financial structure, although long-term debt levels have increased slightly.
Profitability ratios reflect a steady growth in profitability, with return on assets
(ROA) and return on equity (ROE) showing positive trends. Efficiency ratios
highlight effective asset utilization and inventory management practices.
Overall, L&T's financial performance in 2020-23 demonstrates resilience and
effective financial management despite challenges in the operating environment.
The analysis provides valuable insights for investors, stakeholders, and financial
analysts interested in understanding L&T's financial position and performance.
LARSEN & TOUBRO LTD.
Introduction:
Larsen & Toubro (L&T) Limited is a multinational conglomerate based
in Mumbai, India, with a significant presence across various sectors
including engineering, construction, manufacturing, and technology.
Established in 1938 by two Danish engineers, Henning Holck-Larsen
and Soren Kristian Toubro, L&T has grown to become one of the largest
and most respected companies in India, with a global footprint spanning
over 30 countries.
Historical Background:
L&T's journey began with a small office in Mumbai, focusing on civil
engineering and construction projects. Over the years, the company
expanded its operations and diversified into various sectors such as
power, infrastructure, defense, and technology. L&T played a crucial
role in the industrialization and infrastructure development of post-
independence India, contributing to the country's growth and
development.
Business Segments:
L&T operates through various business segments, each catering to
different industries and markets. The company's key segments include:
1. Infrastructure: L&T is a leader in infrastructure development,
involved in building bridges, roads, airports, and metro rail projects. The
company has undertaken several prestigious projects in India and
abroad, showcasing its expertise in civil engineering and construction.
2. Power: L&T is a major player in the power sector, involved in the
design, engineering, and construction of power plants, transmission
lines, and substations. The company also offers solutions in renewable
energy, including solar and wind power projects.
3. Heavy Engineering: L&T's heavy engineering segment manufactures
and supplies critical equipment for various industries such as oil and gas,
refinery, petrochemical, and defense. The segment is known for its high-
quality products and engineering capabilities.

4. Defense: L&T has a strong presence in the defense sector, providing a

wide range of defense solutions including artillery systems, armored
vehicles, naval equipment, and aerospace components. The company
plays a vital role in India's defense manufacturing ecosystem.
5. Technology Services: L&T's technology services segment offers
engineering and technology solutions to various industries such as
automotive, aerospace, and telecommunications. The company is known
for its innovation and expertise in digital transformation and engineering
services.
6. Financial Services: L&T has a financial services arm that provides a
range of financial products and services including mutual funds,
insurance, and wealth management. The segment caters to both retail
and institutional clients.
Global Presence:
L&T has a strong international presence, with operations in over 30
countries across the globe. The company has executed several landmark
projects in countries such as the United States, United Arab Emirates,
Saudi Arabia, and Australia, showcasing its capabilities on the global
stage.
Corporate Social Responsibility (CSR):
L&T is committed to corporate social responsibility and sustainable
development. The company's CSR initiatives focus on education,
healthcare, skill development, and community development, impacting
the lives of thousands of people across India.
Financial Performance:
L&T has consistently delivered strong financial performance, with a
track record of profitability and growth. The company's financial
strength is reflected in its robust balance sheet, strong cash flows, and
prudent financial management practices
L&T Industry Analysis:
Larsen & Toubro (L&T) Limited is a leading multinational
conglomerate with a diverse business portfolio and a strong presence
across various sectors. The company's commitment to excellence,
innovation, and sustainable development has helped it establish itself as
a trusted brand both in India and internationally. L&T's continued focus
on growth and expansion is expected to further strengthen its position as
a market leader in the years to come.
Company Profile:
Founded: 1938
Founder: Henning Holck-Larsen and Soren Kristian Toubro
Headquarters: Mumbai, India
CEO: Mr. S. N. Subrahmanyan
Number of Employees: Over 100,000 (as of 2024)
Revenue: INR 167,352 crore (FY 2022-23)
Business Segments:
L&T operates through various business segments, including:
Infrastructure: Engaged in the construction of buildings, roads,
bridges, airports, and other infrastructure projects.
Power: Provides solutions for power generation, transmission, and
distribution.
Heavy Engineering: Manufactures and supplies critical equipment for
industries such as oil and gas, refinery, and defense.
Defense: Offers a wide range of defense solutions including artillery
systems, armored vehicles, naval equipment, and aerospace components.
Technology Services: Provides engineering and technology solutions to
industries such as automotive, aerospace, and telecommunications.
Financial Services: Offers financial products and services including
mutual funds, insurance, and wealth management.

FINANCIAL STATEMENT
Profit and loss analysis of L&T for the financial years 2019 to 2023
Balance sheet of L&T for the financial years 2019 to 2023
Analysis & Interpretation:

To provide a detailed analysis and interpretation for Larsen & Toubro (L&T) for the
financial years 2019 to 2023, we can examine various aspects of its financial
performance, including revenue, profitability, liquidity, debt management, and market
performance.
Revenue Analysis:
1. L&T's revenue has shown consistent growth over the years, indicating its ability to
capture market share and expand its business operations.
2. The company has likely benefited from its diverse portfolio of projects across
sectors such as infrastructure, engineering, and construction.
Profitability Analysis:
1. L&T has maintained healthy profitability ratios, including net profit margin,
indicating efficient cost management and pricing strategies.
2. The company's profitability may have been supported by operational efficiency and
effective project execution.

Liquidity Analysis:
1. L&T's liquidity position appears strong, as indicated by its current ratio and quick
ratio, suggesting the company's ability to meet its short-term obligations.
2. This strong liquidity position may have been crucial in supporting the company's
growth and investment activities.
Debt Management Analysis:
1. L&T's debt management seems prudent, with a manageable debt-to-equity ratio and
interest coverage ratio, indicating the company's ability to service its debt obligations.
2. The company's ability to maintain a healthy balance between debt and equity may
have contributed to its financial stability and growth.
Market Performance Analysis:
1. L&T's stock performance and market capitalization have likely reflected its strong
financial performance and growth prospects.
2. The company's ability to outperform industry benchmarks and maintain a leading
position in the market is indicative of investor confidence and market competitiveness.
Overall, L&T has demonstrated impressive financial performance from 2019 to 2023,
with strong revenue growth, profitability, liquidity, and debt management. The
company's ability to create a benchmark in the industry is evident from its consistent
performance and market leadership. L&T's strategic focus on diverse sectors and
effective execution of projects have likely contributed to its success and position as a
standout performer in the industry.

Conclusion:

L&T has demonstrated exceptional financial performance from 2019 to 2023,

establishing itself as a benchmark in the industry. The company has achieved
consistent revenue growth, indicating its strong market position and effective business
strategies. Additionally, L&T has shown impressive profitability, with healthy
margins and efficient management of operational expenses.
Moreover, the company's balance sheet strength is commendable, with a well-
managed debt structure and a strong asset base. L&T's ability to generate solid returns
for its shareholders is evident from its robust ROE and overall shareholder equity
growth.
In conclusion, L&T's performance over the years showcases its resilience and
adaptability in a dynamic market environment. The company's ability to consistently
outperform industry standards makes it a standout performer and sets a high
benchmark for its peers.