L&T eyes larger, high quality orders for E&C biz

YM Deosthalee CFO of Larsen & Tubro said that the company’s engineering and construction (E&C)order inflow was at 81% and added that the business showed stable margin of 11.5% (QoQ). He plans to execute larger and higher quality orders in the engineering and construction business of the company. The operating margin of the company was calculated after considering the cost of new initiatives in railways power and ship building, he said. Deosthalee informed that the margins of their electrical business have come down and that the segment contributes to 9% of total revenues. He stated the total interest cost of the company is at 6% and was higher due to forex loan hedging. He said that the company has orders from Petrobras Brazil and a large number of orders from steel companies and added that he was being careful and taking orders only from companies with good financial position.