" "A STUDY OF CONSRUCTION INDUSTRY"

Submitted by: -

SEELANKI MEGHANA

(Reg.no: 22A51E0053)

Under the guidance of: -Prof. HOD. Dr. B.SIVAKUMAR

Department of management studies

ADITYA INSTITUTE OF TECHNOLOGY AND MANAGEMENT,

Tekkali.

(An Autonomous Institution)

(Approved by AICTE, Permanently affiliated to JNTU. VIZAYNAGARAM, and Accredited

by NBA&NAAC, Recognized by UGC 2(f), 12(b))

K.KOTTURU,TEKKALI-532001,SRIKAKULAM DIST, A.P.

2022-2023

Aditya Institute of Technology and Management

 CERTIFICATE

This is to certify that the project report entitled "CONSRUCTION INDUSTRY" being
submitted by SEELANKI MEGHANA in the partial fulfillment for the award of MASTER
OF BUSINESS ADMINISTRATION to AITAM college TEKKALI is a record of bonafide
work carried out of him under my guidance and supervision. The result of the study has not
been submitted to any other university or institute for the award of any degree.

Station:

Date:

Prof. Dr. B.SIVAKUMAR (H.O.D, Guide)

L&T CONSTRUCTION
INDUSTRY
 INDEX
Sr.No CONTEXT PAGE
NO
1 Company’s History

2 Details of founders

3 Nature of business

4 Organizational structure

5 Reporting relationship

6 Working of the different management functions

a. finance function
b. HR Function
c. Marketing function
d. IT&ES function
e. Production function
7 Keys issues and concerns

8 Nature and type of customers through observation.

Discussion and interaction with the company personnel

LARSEN & TOUBRO COMPANY HISTORY

"Larsen & Toubro originated from a company founded in 1946 in Bombay by two Danish
engineers, Henning Holck-Larsen and Søren Kristian Toubro. The company began as a
representative of Danish manufacturers of dairy and allied equipment. However, with the
start of the Second World War in 1939 and the resulting blockade of trade lines, the partners
started a small workshop to undertake jobs and provide service facilities. Germany's invasion
of Denmark in 1940 stopped supplies of Danish products. The war-time need to repair and
refit and degauss ships offered L&T an opportunity, and led to the formation of a new
company, Hilda Ltd, to handle these operations. L&T also started to repair and fabricate
ships signal ling the expansion of the company. The sudden internment of German engineers
in British India (due to suspicions caused by the Second World War), who were to put up a
soda ash plant for the Tatars, gave L&T a chance to enter the field of installation.

In 1946, ECC (Engineering Construction & Contracts) was incorporated by the partners; the
company at this time was focused on construction projects (Presently, ECC is the
construction division of L&T). L&T began several foreign collaborations. By 1947, the
company represented British manufacturers of equipment used to manufacture products such
as hydrogenated oils, biscuits, soaps and glass. In 1947, the company signed an agreement
with Caterpillar Tractor Company, USA, for marketing earth moving equipment. At the end
of the war, large numbers of war-surplus Caterpillar equipment's were available at attractive
prices, but the finances required were beyond the capacity of the partners. This prompted
them to raise additional equity capital, and on 7 February 1946, Larsen & Toubro Private
Limited was incorporated.

After India's independence in 1947, the firm set up offices in Calcutta (now Kolkata), Madras
(now Chennai) and New Delhi. In 1948, 55 acres of undeveloped marsh and jungle was
acquired in Powai, Mumbai. In December 1950, L&T became a public company with a paid-
up capital of ₹20 lakh (equivalent to ₹19 crore or US$2.4 million in 2020). The sales
turnover in that year was ₹1.09 crore (equivalent to ₹102 crore or US$13 million in 2020).
In 1956, a major part of the company's Mumbai office moved to ICI House in Ballard Estate,
which would later be purchased by the company and renamed as L&T House, its present
headquarters.

In 1965, the firm had been chosen as a partner for building nuclear reactors. Dr. Homi
Bhabha, then chairman of the Atomic Energy Commission (AEC) had in fact first
approached L&T in the 1950s to fabricate critical components for atomic reactors. He
convinced Holck-Larsen, a friend with whom he shared an interest in the arts that the
company could do it, indeed must do it. L&T has since contributed significantly to the Indian
nuclear programme ... Holck-Larsen was once asked by a junior engineer why L&T should
get into building nuclear power plants when companies in the US and Germany were losing
money on nuclear jobs.  He replied: 'Young man, India has to build nuclear power plants. If
not L&T, who will do it?'

During the 1970s, L&T was contracted to work with Indian Space Research Organization
(ISRO). Its then chairman, Vikram Sarabhai, chose L&T as manufacturing partner. In 1972,
when India launched its space programme, the firm was invited to participate.

In 1976, ECC bid for a large airport project in Abu Dhabi. ECC's balance sheet, however, did
not meet the bid's financial qualification requirement. So it was merged into L&T. ECC was
eventually rechristened L&T Construction and now accounts for the largest slice of the
group's annual revenue.

2013 -L&T Among India ’s Top 5 Most Respected Companies - Business world -L&T
Scores High in Global 500 Climate Change Report 2013 -Finance Minister Presents L&T
The Economic Times Good Corporate Citizen Award - L&T Completes Acquisition of
Audco India Ltd -L&T IDPL bags Rs. 1293 crore road project in Odisha -L&T Group
Company Wins Saudi Aramco Contract -Larsen & Toubro has announces bonus in the ratio
of 1:2

2014 -L&T Ranked Asia ’s 2nd Most Sustainable Company in Industrial Sector -L&T
Technology Services Wins Frost & Sullivan Excellence Award -L&T Wins Golden Peacock
Award for Excellence in Corporate Governance -L&T Power Wins National Energy
Conservation Award -L&T Wins ICICI Foundation-CNBC TV 18  ‘Inclusive India ’
Award -L&T Construction Wins Rs.1630 Crores Expressway Project in Utara Pradesh - L &
T Bags USD 480 Million EPC orders in Bangladesh for Two Gas Based -L&T Wins Saudi
Aramco Contract -L&T Wins Rs 5100 Crore Supercritical Power Plant Order from MP State
Utility -L&T Construction Wins Rs. 4510 Crs Doha Metro Project

2015 -L&T Wins Golden Peacock Award for Risk Management for 2015 -L&T Award for
Excellence in Power Project Execution from the Central Board -Good Corporate Citizen
Award -L&T Construction Commissions India's first 765kV Gas Insulated Substation -L&T
secures Rs 5,580 cr power plant order from NTPC -L&T Signs MoU with AREVA for Jaipur
Nuclear Power Project -L&T opens new service centre in Nagpur
 2016 -L&T Construction Wins Orders Valued Rs. 2871 Crores -L&T ties up with
McDermott Intel for Emerging Deep water Market in India -L&T Construction bags orders
worth Rs 2213 Crores -L&T bags order worth Rs 3205 cr across various businesses -L&T
signs contract to build stadium in Qatar for FIFA World Cup -L&T gains on bagging Rs
2,416 cr construction orders -L&T achieves synchronization of power project -L&T signs
agreement with Chiyoda Corporation -L&T Technology Services is IACC Â Company of the
Year ’ -L&T Construction Signs Contract with Maharashtra Government for Nagpur Smart
City Project -L&T Construction wins a Major Railway Order valued Rs. 3799 Crores -L&T
Bags Major Order from Vietnam Border Guard for High Speed Patrol Vessels -L&T JV
Wins Rs. 3115 Cr Bihar New Ganga Bridge Project

2017 -L&T Construction Wins Orders Valued 2170 Crores. - L&T Construction Wins Orders
Valued Rs.2170 Crores. -L&T Wins Contract Valued Around Rs 1700 Cr. to Build Crude Oil
Pipeline from KOC Kuwait. -L&T Hydrocarbon Engineering Wins around 1150 Cr (177
Million USD) Contract from ONGC -L&T Construction Wins Orders Valued Rs. 2525
Crores. -L&T Construction Wins Orders Valued Rs.1600 Crore. -L&T commissions 225
MW Sikalbaha Combined Cycle Power Plant in Bangladesh. -L&T Hydrocarbon
Engineering Signs 5-year Framework Agreement with Shell for Engineering, Procurement &
Construction Management Services. -L&T Acquisition of partner's stake in L&T Cassidian
Limited a JV Company. -Larsen & Toubro and MBDA establish Joint Venture for
development of sophisticated missile systems -L&T Hydrocarbon Bags Orders Worth
Around 4000 Crores. -L&T Again Plays Critical Role in ISRO's Record Mission of
Launching 104 Satellites. -L&T Electrical & Automation FZE Wins Rs. 500 crore Order
From Qatar Rail Company. -L&T Construction Wins Orders Valued Rs.3572 Crore. -L&T
Hydrocarbon Engineering Wins Rs. 1100 Crore Order for Ind max Project from Indian Oil
Corporation -L&T Hydrocarbon Engineering Led Consortium Secures Two More Awards
From Saudi Aramco. -L&T Bags EPC Order for 400 MW Gas Based Power Plant in
Bangladesh. -L&T Hydrocarbon Engineering Signs Agreement with Institute of Chemical
Technology to Build Second Generation Ethanol Plants -L&T launches Navy s Floating
Dock Reaffirms capabilities to deliver Defence projects on time -L&T won the prestigious
Best Capital Projects & Infrastructure Risk Management Award ’ -L&T Power has won the
prestigious FICCI Quality Systems Excellence Awards for Industry 2017 - Platinum (First)
Prize in Construction Sector
2018 -Larsen & Toubro wins significant contracts in domestic and overseas markets. -L&T
received a Special Recognition Award ’ in the 2018 Employer Brand Research Survey
conducted in India by the global HR services provider, Rand stad. -L&T Technology
launches digital industrial solutions.

2019 -L&T has won the prestigious Dun & Bradstreet (D&B) Corporate Award 2019 in the
Construction Infrastructure Development category. - L&T Construction was recognized as
the Best Performing Power Transmission & Distribution Organization ’ by the Central
Board of Irrigation and Power. -L&T Construction wins orders worth Rs 1060 cr. -L&T
Construction bags orders to construction of hospitals.

2020 -Larsen & Toubro wins 'large' contract from Indian Army for advanced IT-enabled
network. -L&T's construction arm wins 'large' water management orders in Karnataka. -L&T
launches final offshore patrol vessel for Indian Coast Guard. -L&T Wins Two Risk
Management Trophies from CNBC TV18.

2021 -Larsen & Toubro was ranked fourth on Linked In's 2021 Top Companies List in India.
In 2019 L&T was ranked 23. -L&T Hydrocarbon Engineering (LTHE) won the Engineering
Procurement Construction (EPC) - Company of the Year ’ award for the year 2020. -L&T
construction bags order from Oilfields Supply Company Saudi. --LTI launches operational
technology transformation solution with Service Now.

DETAILS OF FOUNDERS
Henning Holck-Larsen (4 July 1907 – 27 July 2003) was a Danish engineer who co-
founded the Indian engineering firm Larsen & Toubro (L&T).Early life and career.

Henning Holck-Larsen was educated at the University of Copenhagen (and what is now

the Technical University of Denmark). He came to India in 1937 as a chemical engineer
working for F. L. Smidth & Co. of Copenhagen. Partnering with his former schoolmate and
fellow employee Søren Kristian Toubro, he set up Larsen & Toubro in 1938. The idea of
L&T was conceived during a holiday in Matheran, a hill station near Mumbai. Holck-Larsen
was a risk-taker while Toubro was more conservative.Larsen and Toubro saw opportunities
in India at a time when few Europeans had realized the country's potential for industrial
growth.

The first office of L&T, located in Mumbai, was so small that only one of them could use it
at a time. Initially, L&T represented Danish dairy equipment manufacturers. However, the
Danish imports were restricted during the World War II, forcing L&T to start a small
workshop that provided servicing and undertook small jobs. The imports stopped after
the German invasion of Denmark, forcing L&T to start manufacturing dairy equipment
endogenously, a move that was successful.

Seeing opportunity in ship repair during wartime, Larsen and Toubro formed a new company
called Hilda Ltd. Around this time, L&T also started two repair and fabrication shops. The
internment of German engineers who were supposed to build a soda ash plant for
the Tatas provided L&T another new opportunity.
In 1944, Larsen and Toubro established Engineering Construction & Contracts (ECC). L&T
started collaborating with international companies around this time. In 1945, it signed an
agreement with the Caterpillar Tractor Company of USA for marketing earth moving
equipment. L&T also started representing British manufacturers of equipment used to
manufacture a variety of products including biscuits, glass, hydrogenated oils and soaps. At
the end of the World War II, the war-surplus Caterpillar equipment were available in bulk at
low prices. However, L&T lacked the money to purchase them. Therefore, Larsen and
Toubro decided to raise additional equity capital, and as a result, Larsen & Toubro Private
Limited was established on 7 February 1946. After India gained independence in 1947, L&T
set up offices in Calcutta, Madras and New Delhi.

Larsen and Toubro gradually transformed L&T into a large business house with diverse
interests, and went on to become one of the most successful Indian companies. After
retirement, Holck-Larsen served as the chairman emeritus of the company. He used to call
India his "adopted homeland" and divided his time between Denmark and India.He died in
2003 at the Breach Candy hospital, Mumbai. L&T bags orders for its Power Transmission &
Distribution business.

Søren Kristian Toubro

In 1938, Toubro partnered with his former schoolmate Henning Holck-Larsen, a chemical

engineer and a fellow F.L.Smidth's employee, to establish Larsen & Toubro. The idea of
Søren Kristian Toubro (27 February 1906 – 4 March 1982) was a Danish engineer who co-
founded the engineering firm Larsen & Toubro, an India-based conglomerate.

Toubro began his career as a civil engineer. As an employee of F. L. Smidth &
Co. of Copenhagen, he came to India in 1934 to erect and commission the equipment
supplied to the Madukkarai Cement Works (near Coimbatore) and the Rohri Cement Factory
(near the Sukkur Barrage in Sindh). Sometime after landing in India, he read a report in The
Bombay Chronicle that quoted Mohandas K. Gandhi as saying: "(I am) not leading a
movement to rid India of its white colonial masters in order to substitute them with brown
ones." Toubro felt that such an India would "offer great opportunities to anyone with modern
L&T was conceived during a holiday in Matheran, a hill station near Mumbai. Holck-Larsen
was a risk-taker while Toubro was more conservative. Larsen & Toubro saw opportunities in
India at a time, when few Europeans had realized the country's potential for industrial
growth.

The first office of L&T, located in Mumbai, was so small that only one of them could use it a
time. Initially, L&T represented Danish dairy equipment manufacturers. However, the
Danish imports were restricted during World War II, forcing L&T to start a small workshop
that provided servicing and undertook small jobs. The imports stopped after the German
invasion of Denmark, forcing L&T to start manufacturing dairy equipment endogenously, a
move that was successful.

Seeing opportunity in ship repair during wartime, Larsen and Toubro formed a new company
called Hilda Ltd. Around this time, L&T also started two repair and fabrication shops. The
internment of German engineers who were supposed to build a soda ash plant for
the Tatas provided L&T another new opportunity.

In 1944, Larsen and Toubro established Engineering Construction & Contracts (ECC). L&T
started collaborating with international companies around this time. In 1945, L&T signed an
agreement with the Caterpillar Tractor Company of the United States for marketing earth
moving equipment. L&T also started representing British manufacturers of equipment used
to manufacture a variety of products including biscuits, glass, hydrogenated oils and soaps.

At the end of World War II, the war-surplus Caterpillar equipment were available in bulk at
low prices. However, L&T lacked the money to purchase them. Therefore, Larsen and
Toubro decided to raise additional equity capital, and as a result, Larsen & Toubro Private
Limited was established on 7 February 1946.After India gained independence in 1947, L&T
set up offices in Calcutta, Madras, and New Delhi. In 1948, L&T acquired 55 acres (22 ha)
of undeveloped land in the Powai suburb of Mumbai.

Larsen and Toubro gradually transformed L&T into a large business house with diverse
interests. A 2006 article in The Hindu described Toubro as follows:

A workaholic, he expected the same of others. A hard taskmaster with a school masterly
attitude to training he may have been, but the young he mentored still remember the lessons
he taught: that no effort was too great to ensure customer satisfaction, that there must be
attention to detail in the quest for perfection, and that there must be pride in whatever was
being done.

Soren K. Toubro served as the director of L&T from 1946 to 1981, and retired from active
management in 1962–63. He continued to serve on the L&T and ECC board of directors till
1981.Last years

After spending nearly five decades in India, Toubro retired to Denmark in 1981, and died
there the following year. Toubro had a large house and estate in Kodaikanal, where his wife
spent her last days.

The Toubro Training Centre, located in the Manapakkam campus of L&T's ECC division, is

named after him. The Toubro Construction Technology Centre, is also named after him, and
was inaugurated by his son Ole K. Toubro in 2006.

NATURE OF BUSINESS
L&T leads in nearly every sphere of business it operates in. Serving customers in more than 50
countries, across various industries. Explore our offerings by Industry or by Business.

Construction and engineering major Larsen & Toubro (L&T) has bagged a 'significant' contract from the
Nuclear Power Corporation of India Limited (NPCIL).

"The Construction arm of L&T has secured a significant order from Nuclear Power Corporation of India
Limited (NPCIL) for its Heavy Civil Infrastructure (HCI) Business to build natural draught cooling towers
and a cooling water pump house for the Rawatbhata atomic power project 7 and 8," the company said in a
regulatory filing on Wednesday (10 August).

Though the company has not revealed the exact value of the order, the contracts falls under 'significant'
category which ranges between Rs 1,000 crore to Rs 2,500 crore.

The scope of the project involves constructing natural draught cooling towers, cooling water pump houses,
erection and commissioning of cooling water pumps, and large diameter cement mortar lined and coated
steel pipe (CMLC), the main medium to transport hot water from the turbine to the cooling towers, the
company said. 
 ORGANIZATIONAL STRUCTURE

Three key products/services which L&T is engaged in are: Construction and project-related
activity; manufacturing and trading activity; and IT and engineering services.[13] L&T sold
L&T Mutual Fund to HSBC on November 26, 2022. L&T IDPL was sold to Edelweiss
Alternatives for Rs. 6,000 crore. For administrative purposes, the conglomerate has been
structured into sixteen subsidiary companies:

 L&T Construction
 L&T Hydrocarbon
 L&T Power
 L&T Mineral & Metals
 L&T Heavy Engineering
 L&T Defence
 L&T Shipbuilding
 L&T Construction & Mining Machinery
 L&T Valves
 L&T Technology Services
 L&T Metro Rail
 L&T Financial Services
 L&T Realty
 L&T SuFin
 L&T EduTech
 LTIMindtree
 REPORTING RELATIONSHIP

L&T Construction, also known as Larsen & Toubro Construction, is a leading construction
company based in India. While specific reporting relationships may vary based on the
organizational structure and project requirements, I can provide you with a general overview
of reporting relationships within L&T Construction.Typically, L&T Construction follows a
hierarchical reporting structure. The organization is divided into various levels, with each
level having its own reporting relationships. Here is a general outline of the reporting
relationships within L&T Construction:

Project Manager/Project Director: At the top of the reporting hierarchy, the Project
Manager or Project Director oversees the overall construction project. They are responsible
for strategic planning, coordination, and overall project execution. The Project Manager
reports to higher-level management, such as the Regional Head or Divisional Head.

Regional Head/Divisional Head: The Regional Head or Divisional Head is responsible for
overseeing multiple projects within a specific geographic region or division. They provide
guidance and support to Project Managers and ensure that projects are aligned with company
goals. Regional Heads or Divisional Heads report to higher-level management, such as the
Business Unit Head or Vice President.

Business Unit Head/Vice President: The Business Unit Head or Vice President is
responsible for the overall performance and profitability of a specific business unit within
L&T Construction. They oversee multiple divisions or regions and provide strategic
direction. Business Unit Heads or Vice Presidents report to the Senior Management Team or
the Chief Executive Officer (CEO).

Senior Management Team/Chief Executive Officer (CEO): The Senior Management

Team consists of executives at the highest level within L&T Construction. This team includes
individuals such as the CEO, Chief Financial Officer (CFO), and other senior executives.
They are responsible for setting company-wide strategies, making major decisions, and
ensuring the overall success of the organization. The Senior Management Team reports to the
Board of Directors.

Business Unit Head: The Business Unit Head is responsible for the overall performance and
profitability of a specific business unit or segment within L&T Construction. They provide
strategic direction, make important decisions, and ensure the successful operation of the unit.
The Business Unit Head typically reports to the Chief Executive Officer (CEO) or a higher-
level executive.

Chief Executive Officer (CEO): The CEO is the highest-ranking executive in L&T
Construction. They have overall responsibility for the company's operations, strategy, and
performance. The CEO reports to the Board of Directors.

Board of Directors: The Board of Directors is responsible for governing and providing
oversight to L&T Construction. They set the company's strategic direction, make major
decisions, and ensure compliance with legal and regulatory requirements.

Divisional/Regional Head: The Divisional or Regional Head is responsible for a specific

division or region within L&T Construction. They provide overall supervision and direction
for multiple projects within their jurisdiction. The Divisional/Regional Head reports to
higher-level management.

Senior Management/Executive Leadership: The senior management or executive

leadership team consists of high-level executives who have overarching responsibility for the
company's operations, strategy, and performance. This team includes executives such as the
CEO, Chief Financial Officer (CFO), and other senior leaders. They make major decisions,
set organizational goals, and provide direction to the Business Unit Heads.
Project Coordinator: The Project Coordinator supports the Project Engineer or Project
Manager in various administrative and coordination tasks. They assist in project scheduling,
documentation, and communication. The Project Coordinator reports to the Project Engineer
or Project Manager.

Site Engineer/Site Supervisor: The Site Engineer or Site Supervisor is responsible for
managing the construction activities on-site. They ensure that the work is progressing
according to plans and specifications, manage the workforce, and coordinate with
subcontractors. The Site Engineer or Site Supervisor reports to the Project Engineer or
Project Manager.
 WORKING OF THE DIFFERENT MANAGEMENT
FUNCTIONS

FINANCE FUNCTION:

L&T Construction, a division of Larsen & Toubro Limited, is a prominent player in the
construction industry in India and globally. As part of its operations, L&T Construction
provides financial services to support its construction projects. However, it's important to
note that L&T Construction primarily focuses on construction activities, and its financial
function is designed to facilitate and support its construction projects rather than being a
standalone financial institution.

The financial function within L&T Construction involves various activities related to project
financing, budgeting, cost control, financial planning, and financial risk management. Here
are some key aspects of L&T Construction's financial function

Project Financing: L&T Construction arranges funds and financial resources required for its
construction projects. This involves securing loans, negotiating credit terms with financial
institutions, and managing the financial aspects of project contracts.

Budgeting and Cost Control: L&T Construction's financial function plays a crucial role in
budgeting for construction projects. It involves estimating project costs, allocating resources,
monitoring expenses, and implementing cost control measures to ensure projects are
completed within budget.

Financial Planning: L&T Construction's financial team engages in financial planning

activities to ensure the availability of funds at various stages of a project. This includes
forecasting cash flows, analyzing financial feasibility, and developing strategies to optimize
financial resources.

Financial Risk Management: The financial function within L&T Construction also focuses
on identifying and managing financial risks associated with construction projects. This
involves assessing project risks, implementing risk mitigation measures, and ensuring
compliance with financial regulations.

Financial Reporting and Analysis: L&T Construction's financial function prepares financial
reports and conducts financial analysis to provide insights into the financial performance of
construction projects. This helps in assessing profitability, monitoring project progress, and
making informed decisions.

Financial Planning and Budgeting: The financial function plays a vital role in financial
planning and budgeting for construction projects. It involves preparing project budgets,
forecasting cash flows, estimating costs, and allocating financial resources effectively to
ensure the smooth execution of projects.

Cost Control and Analysis: L&T Construction's financial function is involved in monitoring
and controlling project costs. This includes tracking expenses, analyzing cost variances,
identifying cost-saving opportunities, and implementing measures to optimize project costs.

Cash Flow Management: The financial function ensures proper management of cash flows
within L&T Construction. It involves monitoring and forecasting cash flows, optimizing
working capital, managing payments and receivables, and ensuring sufficient liquidity for
project operations.

Compliance and Audit: The financial function ensures compliance with financial and
accounting standards, as well as regulatory requirements. It involves maintaining proper
accounting records, coordinating internal and external audits, and implementing controls to
ensure accuracy and transparency in financial operations.

Stakeholder Management: The financial function collaborates with internal and external
stakeholders, including project teams, clients, financial institutions, and regulatory bodies. It
provides financial insights and supports decision-making processes to meet the requirements
and expectations of stakeholders.

Project Financial Planning: The financial function is involved in the early stages of project
planning, assisting in the financial assessment and feasibility of construction projects. This
includes evaluating project costs, estimating financing requirements, and analyzing potential
financial risks and returns.

Funding and Capital Structure: L&T Construction's financial function works on

identifying and securing appropriate funding sources for construction projects. This involves
engaging with financial institutions, negotiating loan terms, and optimizing the capital
structure to ensure adequate financial resources for project execution.

Financial Controls and Compliance: The financial function establishes and maintains
financial controls and compliance measures within L&T Construction. This includes
implementing accounting standards, internal controls, and financial policies to ensure
accuracy, transparency, and adherence to regulatory requirements.

Contract Management: The financial function collaborates with project teams and legal
departments to review and manage financial aspects of contracts. This includes financial
negotiations, contract risk assessment, and financial implications of contract terms and
conditions.

Financial Planning and Forecasting: The financial function engages in financial planning
activities, such as forecasting cash flows, analyzing financial feasibility, and developing
strategies to optimize financial resources throughout the project lifecycle.

Financial Reporting and Analysis: The financial function prepares financial reports,
including income statements, balance sheets, and cash flow statements, to provide insights
into the financial performance of construction projects. Financial analysis helps in evaluating
project profitability, identifying trends, and making informed decisions.

Compliance and Governance: The financial function ensures compliance with financial
regulations, accounting standards, and internal financial policies. It maintains proper
accounting records, coordinates audits, and implements internal controls to ensure
transparency and accuracy in financial operations.

Cost Management: The financial function is involved in cost estimation, budgeting, and cost
control for construction projects. It tracks project expenses, analyzes cost variances, and
implements measures to optimize project costs.

HR Function:

L&T Construction, a division of Larsen & Toubro Limited, has a dedicated HR (Human
Resources) function that manages various aspects related to human capital within the
organization. The HR function plays a crucial role in recruiting, developing, and supporting
employees to meet the organization's goals and objectives. Here are some key elements of
L&T Construction's HR function:

Recruitment and Talent Acquisition: The HR function is responsible for attracting and
hiring talented individuals for various roles within L&T Construction. This involves
conducting recruitment drives, sourcing candidates, evaluating resumes, conducting
interviews, and making hiring decisions.

Employee On boarding and Orientation: The HR function ensures smooth on-boarding of

new employees. It includes conducting orientation programs, introducing employees to the
company's policies and culture, and facilitating their integration into the organization.
Performance Management: The HR function establishes performance management systems
to evaluate and monitor employee performance. This includes setting performance goals,
conducting performance appraisals, providing feedback, and implementing performance
improvement plans when needed.

Compensation and Benefits: The HR function designs and administers compensation and
benefits programs to attract and retain employees. This involves salary structuring, benefits
administration, managing incentives, and ensuring compliance with compensation
regulations.

Employee Relations: The HR function plays a crucial role in fostering positive employee
relations within L&T Construction. It handles employee grievances, addresses workplace
conflicts, and promotes a healthy work environment. It may also facilitate employee
engagement activities and initiatives.

Policy Development and Compliance: The HR function develops and implements HR

policies and procedures aligned with legal and regulatory requirements. It ensures
compliance with labor laws, diversity and inclusion policies, and other relevant regulations.

Succession Planning: The HR function identifies and develops potential leaders within the
organization through succession planning. It assesses employee potential, creates
development plans, and facilitates smooth leadership transitions.

Health, Safety, and Welfare: The HR function is responsible for ensuring the health, safety,
and welfare of employees. This involves implementing safety protocols, managing employee
welfare programs, and promoting a safe and healthy work environment.
Recruitment and Selection: The HR function is responsible for identifying talent needs,
developing job descriptions, sourcing candidates, conducting interviews, and selecting
qualified individuals to fill vacancies within L&T Construction. This includes both internal
promotions and external hiring.

On boarding and Orientation: The HR function ensures a smooth on boarding process for
new employees. This involves providing them with necessary information, conducting
orientation programs, and facilitating their integration into the company culture and work
environment.

Employee Development and Training: The HR function designs and implements training
and development programs to enhance the skills, knowledge, and capabilities of employees.
This includes technical training, leadership development, soft skills training, and other
relevant programs to support employee growth and career progression.

Employee Engagement and Relations: The HR function focuses on fostering a positive

work environment and maintaining employee engagement. This includes organizing
employee engagement initiatives, promoting communication channels, addressing employee
concerns, and managing employee relations to create a harmonious workplace.

Talent Management and Succession Planning: The HR function identifies high-potential

employees, creates talent development plans, and implements succession planning strategies.
This includes assessing employee potential, providing career development opportunities, and
ensuring a pipeline of future leaders within the organization.

Workforce Planning and Recruitment: The HR function collaborates with business units
to determine workforce needs and develop recruitment strategies. This involves identifying
job requirements, sourcing and attracting candidates, conducting interviews, and selecting
qualified individuals to fill positions.
Employee Engagement and Relations: The HR function focuses on creating a positive
work environment and fostering employee engagement. It implements initiatives such as
employee recognition programs, feedback mechanisms, and communication channels to
promote employee satisfaction and productivity.

Learning and Development: The HR function designs and implements training and
development programs to enhance employee skills and competencies. This includes
identifying training needs, organizing workshops or courses, and supporting employee
growth through continuous learning opportunities.

Compensation and Benefits: The HR function manages employee compensation and

benefits programs. It ensures fair and competitive salary structures, administers benefits
packages, handles payroll processing, and stays updated on relevant labor laws and
regulations.

Employee Wellness and Safety: The HR function promotes employee wellness and safety
by implementing health and safety policies, organizing wellness initiatives, and ensuring
compliance with occupational health and safety regulations.

HR Policy Development and Compliance: The HR function formulates HR policies and

procedures aligned with legal requirements and industry best practices. It ensures compliance
with labor laws, diversity and inclusion policies, and ethical standards.

Employee Separation and Off-boarding: The HR function manages the employee

separation process, including exit interviews, clearance procedures, and the transition of
responsibilities. It also conducts off-boarding activities to ensure a positive experience for
departing employees.

HR Data Management and Systems: The HR function maintains accurate employee

records, manages HR systems and databases, and ensures data privacy and security.

These are some of the key responsibilities and functions within L&T Construction's HR
function. However, it's important to note that specific practices and processes may vary based
on the organization's policies, industry norms, and evolving needs. For precise and up-to-date
information, it's recommended to refer to L&T Construction's official communications or
contact their HR representatives directly.

MARKETING FUNCTION:

The marketing function within L&T Construction is responsible for developing and
implementing marketing strategies to promote the company's construction services and
solutions. While I can provide a general overview of the marketing function, it's important to
note that specific details and operations may vary based on L&T Construction's marketing
objectives and practices. Here are some key aspects of L&T Construction's marketing
function:

Marketing Strategy and Planning: The marketing function at L&T Construction develops
marketing strategies and plans aligned with the company's overall objectives. This includes
identifying target markets, defining value propositions, and determining marketing goals and
objectives.

Market Research and Analysis: The marketing function conducts market research to gather
insights into customer needs, preferences, and market trends. This information helps in
understanding customer requirements, identifying market opportunities, and making
informed marketing decisions.

Brand Management: The marketing function focuses on building and maintaining the L&T
Construction brand. This involves developing a strong brand identity, positioning the brand
in the market, and ensuring brand consistency across all marketing channels and
communications.
Product and Service Promotion: The marketing function develops and executes
promotional campaigns to create awareness and generate interest in L&T Construction's
construction services and solutions. This includes advertising, digital marketing, content
marketing, events, and other promotional activities.

Lead Generation and Customer Acquisition: The marketing function implements

strategies to generate leads and acquire new customers. This may involve lead generation
campaigns, lead nurturing activities, and collaboration with the sales team to convert leads
into customers.

Customer Relationship Management (CRM): The marketing function utilizes CRM

systems and strategies to manage and nurture customer relationships. This includes managing
customer data, implementing customer retention programs, and delivering personalized
experiences to enhance customer satisfaction and loyalty.

Industry Collaboration and Partnerships: The marketing function at L&T Construction

collaborates with industry stakeholders, associations, and partners to create synergies, expand
market reach, and identify business opportunities.

Marketing Analytics and Performance Measurement: The marketing function analyzes

marketing data and metrics to measure the effectiveness of marketing campaigns and
initiatives. This includes tracking key performance indicators (KPIs), conducting market
research, and using data-driven insights to optimize marketing strategies.

Digital Marketing and Online Presence: The marketing function leverages digital channels
to reach and engage with target audiences. This includes managing the company's website,
social media presence, online advertising, and other digital marketing activities.
Customer Education and Thought Leadership: The marketing function provides
educational content and thought leadership to position L&T Construction as an industry
expert. This may involve publishing articles, white papers, and hosting webinars or events to
share knowledge and insights with customers and the industry.

Marketing Strategy and Planning: The marketing function develops comprehensive

marketing strategies and plans aligned with L&T Construction's business goals. This involves
identifying target markets, analyzing market trends, and defining value propositions to
differentiate the company from competitors.

Thought Leadership and Industry Engagement: The marketing function establishes L&T
Construction as a thought leader in the construction industry. This involves creating and
sharing informative content, participating in industry events and conferences, and engaging
with industry stakeholders to showcase expertise and industry-leading solutions.

Marketing Collateral and Sales Support: The marketing function creates marketing
collateral, such as brochures, presentations, case studies, and sales tools, to support the sales
team in their customer interactions. This includes providing them with the necessary
materials and information to effectively communicate the value of L&T Construction's
offerings.

Marketing Performance Measurement and Analysis: The marketing function tracks and
analyzes key marketing metrics and performance indicators to measure the effectiveness of
marketing efforts. This includes monitoring campaign performance, conducting market
analysis, and using data-driven insights to optimize marketing strategies and tactics.

Industry Collaboration and Partnerships: The marketing function collaborates with

industry stakeholders, associations, and partners to build strategic alliances and create
mutually beneficial opportunities. This includes participating in industry events, conferences,
and trade shows to network and showcase L&T Construction's expertise.
Product and Service Promotion: The marketing function develops and executes
promotional campaigns to create awareness and generate interest in L&T Construction's
construction services and solutions. This may involve advertising, digital marketing, content
marketing, public relations, and direct marketing efforts.

Stakeholder Communication: The marketing function communicates with various

stakeholders including customers, investors, suppliers, and the general public. This involves
developing and implementing effective communication strategies to maintain positive
relationships and manage the company's reputation.

Communication and Brand Awareness: The marketing function ensures effective

communication of L&T Construction's value proposition and messaging. This includes
developing marketing collateral, managing public relations, and overseeing corporate
communications to enhance brand awareness and reputation.

These are some of the key elements of L&T Construction's marketing function. However,
please note that the specific strategies and activities may vary based on the company's goals,
target markets, and industry dynamics. It's recommended to refer to L&T Construction's
official communications or contact their marketing representatives for more accurate and
detailed information.
IT&ES function:

L&T Construction's IT&ES (Information Technology and Enterprise Solutions) function is

responsible for managing and leveraging technology and digital solutions to support the
company's operations, processes, and business objectives. Here are some key aspects of L&T
Construction's IT&ES function:

IT Infrastructure Management: The IT&ES function oversees the management and

maintenance of the company's IT infrastructure, including networks, servers, databases, and
hardware systems. This ensures the availability, reliability, and security of IT resources for
smooth operations.

Software Development and Integration: The IT&ES function develops and integrates
software applications that support various business processes within L&T Construction. This
may include project management systems, ERP (Enterprise Resource Planning) software,
collaboration tools, and other customized applications.

IT Operations and Support: The IT&ES function provides technical support and
troubleshooting for IT systems and applications used by employees. This includes help desk
services, system administration, user training, and ensuring smooth functioning of IT
operations.

Data Management and Analytics: The IT&ES function manages data storage, retrieval, and
analysis to provide insights for decision-making and process optimization. This involves data
governance, data security, data integration, and implementing analytics tools and platforms.

Digital Transformation: The IT&ES function plays a crucial role in driving digital
transformation initiatives within L&T Construction. This includes identifying opportunities
for automation, implementing digital solutions, and optimizing processes through
technologies such as IOT (Internet of Things), AI (Artificial Intelligence), and cloud
computing.

Cyber security and Data Privacy: The IT&ES function ensures the security of L&T
Construction's IT systems and data. This involves implementing cybersquatting measures,
conducting risk assessments, monitoring threats, and ensuring compliance with data privacy
regulations.

IT Strategy and Governance: The IT&ES function develops IT strategies aligned with the
company's overall business goals and objectives. This includes defining IT policies,
standards, and governance frameworks to ensure effective and efficient use of technology
resources.

Innovation and Emerging Technologies: The IT&ES function explores and evaluates
emerging technologies and trends that could benefit L&T Construction's operations. This
includes staying updated on industry advancements, conducting proof-of-concept projects,
and driving innovation initiatives.

Collaboration and Stakeholder Engagement: The IT&ES function collaborates with

internal stakeholders, including other departments and business units, to understand their
technology needs and align IT solutions accordingly. It also engages with external partners
and industry experts to stay abreast of technological advancements and industry best
practices.

Application Development and Management: The IT&ES function is involved in the

development and management of software applications that cater to the specific needs of
L&T Construction. This includes designing, developing, testing, and maintaining
applications that support various business functions such as project management,
procurement, finance, and human resources.
Enterprise Resource Planning (ERP) Systems: The IT&ES function is responsible for
implementing and managing ERP systems that integrate different business functions and
enable efficient data management and process automation. This includes modules such as
finance, human resources, supply chain, and project management.

Collaboration and Communication Solutions: The IT&ES function implements and

supports collaboration and communication tools that enable seamless information sharing
and collaboration among employees, contractors, and other stakeholders. This includes tools
such as project management platforms, document management systems, and video
conferencing solutions.

Cyber security and Information Protection: The IT&ES function ensures the security of
L&T Construction's IT systems and data by implementing robust cybersquatting measures
and information protection strategies. This includes network security, data encryption, access
controls, threat monitoring, and regular security audits.

Digital Transformation Initiatives: The IT&ES function plays a critical role in driving
digital transformation initiatives within L&T Construction. This involves leveraging
emerging technologies such as AI, machine learning, Internet of Things (IOT), and
automation to enhance operational efficiency, improve productivity, and enable innovative
solutions.

IT Governance and Compliance: The IT&ES function establishes IT governance

frameworks and ensures compliance with relevant regulations and industry standards. This
includes defining IT policies and procedures, managing IT risks, and ensuring adherence to
data privacy and protection regulations.

IT Support and Training: The IT&ES function provides technical support to end-users,
resolves IT-related issues, and conducts training programs to enhance IT literacy and skills
among employees.
Enterprise Systems: The IT&ES function is responsible for implementing and managing
enterprise systems such as ERP (Enterprise Resource Planning) and CRM (Customer
Relationship Management) solutions. These systems integrate different business functions
and enable efficient data management and process automation.

IT Service Management: The IT&ES function manages IT service delivery, including

incident management, problem management, change management, and service level
management. This ensures that IT services are provided efficiently and meet the needs of the
business. The IT&ES function utilizes data analytics tools and techniques to derive insights
and support data-driven decision-making. This includes analyzing data from various sources
to identify trends, patterns, and opportunities for improvement.

IT Governance and Compliance: The IT&ES function establishes IT governance

frameworks and ensures compliance with relevant regulations and industry standards. This
includes defining IT policies, managing IT risks, and ensuring adherence to data privacy and
security requirements.

User Support and Training: The IT&ES function provides technical support to end-users,
resolves IT-related issues, and conducts training programs to enhance IT literacy and skills
among employees.

IT Strategy and Planning: The IT&ES function develops IT strategies aligned with L&T
Construction's business objectives. This involves identifying technology trends, assessing
business needs, and defining a road map for technology adoption and innovation.

These are some of the key areas and responsibilities within L&T Construction's IT&ES
function. The specific initiatives and practices may vary based on the company's goals,
industry requirements, and technological advancements.

Production function :

The production function in L&T Construction is responsible for managing and executing the
production and manufacturing processes to deliver construction projects and products
efficiently and effectively. Here are some key aspects of L&T Construction's production
function:

Project Planning and Scheduling: The production function collaborates with project
managers and other stakeholders to develop project plans and schedules. This involves
determining the sequence of activities, resource allocation, and setting timelines to ensure
timely project delivery.

Resource Management: The production function manages and optimizes the allocation of
resources required for construction projects. This includes labor, equipment, materials, and
subcontractors. Effective resource management ensures that the necessary resources are
available when and where they are needed.

Procurement and Supply Chain: The production function works closely with the
procurement and supply chain team to ensure timely availability of construction materials,
equipment, and supplies. This involves coordinating with vendors, managing inventory, and
optimizing the supply chain to minimize delays and maximize efficiency.

Quality Control and Assurance: The production function is responsible for ensuring quality
control and adherence to project specifications and standards. This involves implementing
quality assurance processes, conducting inspections and tests, and addressing any deviations
or non-conformists.
Health, Safety, and Environment (HSE): The production function prioritizes and enforces
health, safety, and environmental regulations and practices on construction sites. This
includes implementing safety protocols, conducting regular safety audits, and promoting a
culture of safety among workers and subcontractors.

Construction Methodologies and Techniques: The production function develops and

implements construction methodologies and techniques to optimize productivity, minimize
waste, and improve efficiency. This includes evaluating and adopting innovative construction
techniques and technologies.

Equipment and Asset Management: The production function manages the procurement,
maintenance, and utilization of construction equipment and assets. This involves ensuring the
availability and proper functioning of equipment, scheduling maintenance and repairs, and
optimizing equipment usage to maximize productivity.

Continuous Improvement: The production function focuses on continuous improvement to

enhance productivity and efficiency in construction processes. This includes analyzing
performance metrics, identifying areas for improvement, implementing process
enhancements, and fostering a culture of innovation.

Project Planning and Execution: The production function collaborates with project
managers and other stakeholders to develop project plans and strategies. It involves defining
project goals, establishing work breakdown structures, determining resource requirements,
and creating schedules for project execution.

Quality Assurance: The production function ensures that construction projects meet the
required quality standards and specifications. It establishes quality control processes,
conducts inspections and tests, and implements corrective actions to address any deviations
or deficiencies.
Health, Safety, and Environmental Compliance: The production function prioritizes the
health, safety, and environmental aspects of construction projects. It develops and enforces
safety protocols, promotes safe working practices, conducts regular inspections, and ensures
compliance with relevant regulations and standards.

Supply Chain Management: The production function manages the procurement and
logistics of construction materials, equipment, and supplies. It works closely with suppliers
and vendors to ensure timely delivery, quality control, and cost efficiency in the supply chain.

Cost Control and Budget Management: The production function is responsible for
monitoring project costs and managing the budget. It tracks expenses, identifies cost-saving
opportunities, and implements measures to control costs and maximize project profitability.

Collaboration and Coordination: The production function collaborates with other

departments and stakeholders involved in construction projects. It ensures effective
communication, coordination, and integration of activities to optimize project performance
and outcomes.

Project Planning: The production function collaborates with project managers and other
stakeholders to develop project plans. This includes defining project scope, objectives,
timelines, and resource requirements. It involves analyzing project specifications, conducting
feasibility studies, and creating a comprehensive plan for project execution.

Construction Execution: The production function oversees the actual construction activities
on-site. It coordinates with various teams, such as engineering, procurement, and
subcontractors, to ensure that construction plans are executed effectively. This involves
managing construction schedules, coordinating material deliveries, and supervising the work
progress.
Quality Control: The production function ensures that construction projects meet the
required quality standards. It establishes quality control processes, conducts inspections and
tests, and addresses any deviations or non-conformists. This includes monitoring the quality
of materials, workmanship, and adherence to project specifications.

Health and Safety: The production function prioritizes health and safety on construction
sites. It implements safety protocols, conducts safety training programs, and enforces
compliance with safety regulations. This includes identifying and mitigating potential
hazards, promoting safe working practices, and ensuring the well-being of workers and
stakeholders.

Cost Control: The production function is responsible for managing project costs and
ensuring budget adherence. It monitors expenses, tracks project expenditures, and identifies
cost-saving opportunities. This involves controlling material wastage, optimizing resource
utilization, and managing subcontractor costs.

Stakeholder Management: The production function maintains effective communication and

coordination with stakeholders, including clients, consultants, and regulatory authorities. It
provides regular project updates, addresses concerns, and manages expectations throughout
the construction process.

Sustainability and Environmental Considerations: The production function promotes

sustainable construction practices and environmental stewardship. It implements measures to
reduce waste, minimize environmental impact, and optimize energy efficiency. This includes
utilizing green building materials, implementing recycling programs, and adhering to
environmental regulations.

Resource Allocation: The production function manages the allocation of resources required
for construction projects. This includes human resources, equipment, materials, and
subcontractors. The production function ensures that the necessary resources are available
and properly assigned to the project, optimizing resource utilization and minimizing delays.

Construction Execution: The production function oversees the actual construction activities
on-site. It coordinates with various teams, including engineering, procurement, and
subcontractors, to ensure smooth execution of construction plans. This involves managing
construction schedules, monitoring progress, and addressing any issues or obstacles that may
arise during the construction phase.

Quality Control: The production function focuses on maintaining quality standards

throughout the construction process. It establishes quality control procedures, conducts
regular inspections, and ensures compliance with project specifications and industry
regulations. The production function works to identify and rectify any deviations or
deficiencies in order to deliver a high-quality end product.

Cost Management: The production function is responsible for managing project costs and
ensuring budget adherence. It monitors project expenditures, identifies cost-saving
opportunities, and controls expenses related to labor, materials, and equipment. The
production function strives to optimize cost-efficiency without compromising the quality and
timely delivery of construction projects.

Cost Control and Optimization: The production function is responsible for managing
project costs and ensuring budget adherence. It monitors project expenditures, identifies cost-
saving opportunities, and optimizes cost-efficiency in areas such as labor, materials, and
equipment procurement. The production function aims to achieve the desired project
outcomes while maximizing cost-effectiveness.

These are some of the key aspects of L&T Construction's production function. The specific
initiatives, practices, and processes may vary based on project requirements, industry
standards, and company objectives. For the most accurate and up-to-date information, I
recommend contacting L&T Construction directly or visiting their official website.

KEYS ISSUES AND CONCERNS

Larsen & Toubro Ltd (L&T), the bellwether of the country’s infrastructure sector, is set to
declare its first-quarter results on Friday. The firm’s stock performance indicates that the
investor mood is quite subdued. With a 24% weight-age in the BSE Capital Goods index, it
has under performed the same since January.

The company’s June quarter results are crucial in that they will set the tone for expectations
on the complex cycle and the revival of investment demand over the next 12-18 months. The
key issues that L&T’s results would address are:

 Order inflows and economic outlook

A robust 39% year-on-year jump in order inflows along with its huge order book of
around ₹ 2.32 trillion were the bright spots in the otherwise gloomy March quarter. But
expectations are not so high for the June quarter. Analysts’ estimates are that domestic orders
would be subdued and perhaps a tad lower than the average of four quarters in fiscal 2015.
Indeed, there’s optimism in the economy to the extent that the worst is over. But then, with
little complex activity in the industrial sector and the increased budgetary outlay for
infrastructure during the year yet to fructify into orders for companies, a huge bump up in
order inflow would be a positive surprise for the Street. Meanwhile, a Motilal Oswal
Financial Services Ltd report says that overseas wins have been muted, particularly
impacted by the sharp decline in crude prices, and that three-month moving average order
awards in the Middle East are down 50% year on year.That said, L&T’s order inflow profile
will indicate the level of activity across economic sectors. Order pricing (expected to be
weak) is a crucial peg for future earnings estimates.
 Project execution and revenue ramp-up

L&T’s revenue ramp-up took a beating in fiscal year 2015. Weak project execution and poor
advances from clients mirrored the desperate state of financial health of companies during
the March quarter.
Even a marginal improvement in this respect would be cheered by the Street, although
expectations are that L&T’s consolidated revenue growth for the June quarter would be
within 10% year-on-year.

One must also look out for the sectoral contribution to revenue. In the previous quarter, the
engineering division, which accounts for 80% of revenue, hardly grew, with much of the
consolidated revenue expansion coming from non-core sectors such as information
technology and financial services. Further, revenue from last fiscal year’s orders would
accrue with a lag, as much of these orders came in during the March quarter. Management
comments, if any, on the Middle Eastern economies are also important to determine future
traction in international order flow and revenue.

 Working capital constraints

One would think that L&T’s gigantic size would give it an edge in booking orders and
pricing power. But the firm’s working capital needs as a percentage to sales have steadily
risen from 10% in fiscal 2011 to 32% in 2015. Analysts reckon this would be high for a few
more quarters, given tight liquidity conditions, stiff payment terms on projects and stretched
balance sheets of the firm’s clients. Any improvement therefore would be a harbinger of
improving credit profile in the economy. Importantly, this would impact net profit even if the
operating performance is robust.

 Sorting out its subsidiaries

The consensus on the Street is that the worst is behind its loss-making subsidiaries, be it ship-
building, hydrocarbons or nuclear forging. Some brokerage reports suggest that further
provisioning towards huge subsidiary losses is unlikely during the June quarter.
Meanwhile, the status of monetization of non-core assets and initial public offering of its in
fotech subsidiary are key to consolidated earnings estimates for the near and medium term.
Of course, these are major issues that investors are hopeful of being addressed in the June
quarter results. In addition, investor sentiment would be influenced by operating margin—
Bloom berg's consensus estimate is 11.9%, about 100 basis points lower than that turned out
in the year-ago period. Operating profit to a large extent would mirror revenue growth, given
L&T’s strength in cost control.
And one cannot ignore the management commentary which would throw light on the
company’s prospects but would be crucial to determining ground reality changes in economic
activity.
The investor mood is dull as seen in the stock price that closed a tad lower on Thursday in
spite of a rise in the broad benchmark indices. Yet, the prevailing price of ₹ 1,776.2
discounts the one-year forward estimated earnings by about 28 times, a fair valuation given
the uncertainties both at the macro and company level.
 Nature and type of customers through observation. Discussion
and interaction with the company personnel

L&T Construction, also known as Larsen & Toubro Construction, is one of the largest
construction companies in India. While I don't have access to real-time information or the
ability to directly observe the company, I can provide you with a general overview of the
nature and type of customers that L&T Construction typically serves based on publicly
available information up until September 2021. L&T Construction caters to a diverse range
of customers across various sectors, including:

Real Estate Developers: L&T Construction collaborates with real estate developers to
construct residential and commercial projects. They work on high-rise buildings, townships,
shopping malls, office spaces, and other real estate ventures.

Institutional Clients: Construction companies may have institutional clients, such as

educational institutions, hospitals, research facilities, and government organizations that
require specialized construction services.

Government and Public Sector: L&T Construction has been involved in numerous
government and public sector projects. These can include infrastructure development, such as
the construction of roads, bridges, highways, airports, ports, railways, and other public
utilities. They may have worked with entities like government departments, municipal
corporations, public works organizations, and infrastructure development authorities.

Private Sector: L&T Construction has served a wide range of clients from the private sector.
This includes real estate developers, corporate entities, industrial firms, and commercial
businesses. They have undertaken construction projects for residential complexes,
commercial buildings, hotels, shopping malls, office spaces, and various private
infrastructure ventures.

Energy and Power Sector: L&T Construction has a presence in the energy and power
industry. They have worked on projects related to power generation, transmission, and
distribution. This involves constructing power plants, substations, transmission lines, and
other electrical infrastructure. They may have served clients from the power generation
companies, utilities, and energy corporations.

Oil and Gas Industry: L&T Construction has experience in serving clients in the oil and gas
sector. They have been involved in the construction of refineries, petrochemical plants,
pipelines, storage facilities, and other infrastructure required for oil and gas exploration,
production, and transportation. Their customers in this sector can include oil companies,
petrochemical firms, and energy conglomerates.

Infrastructure Development: L&T Construction has played a role in large-scale

infrastructure development projects. This can include building airports, seaports, metro rail
systems, urban infrastructure, and smart city initiatives. They may have worked with
government bodies, infrastructure development authorities, and public-private partnerships.

Petrochemical and Chemical Industry: L&T Construction caters to the petrochemical and
chemical industry by constructing manufacturing units, storage facilities, and other
infrastructure needed for chemical processing and production.

These observations are based on general knowledge and historical information. To obtain the
most accurate and up-to-date details about L&T Construction's customer base, it is advisable
to refer to their official website, company reports, industry publications, or reach out to the
company directly.