Tuesday, May 09, 2006
Cementing the headquarters (IIPM Publication)
L&T’s must control operating costs; lest more assets get sold
When you decide the right way ahead, you must stick by it. In that context, Larsen & Toubro’s (L&T) recent move to sell off 21.6% stake in L&T Infrastructure Development Projects Limited to private equity players led by JP Morgan Chase, seems to be doing the contrary. After all, the company had decided previously to be focused on its core business of infrastructure after a series of unsuccessful diversifications. Analysts have already started commenting on how this sale finally marks the beginning of the end of L&T’s infrastructure business. Factually, the infrastructure sector remains the mainstay for L&T, contributing revenues of Rs.112.78 billion, that is, 85% of total group revenues for year ending March 31, 2005 (growth by 7% yoy). Total corporate revenues increased by 35% yoy to Rs.132.69 billion in the same period.
For complete IIPM Editorial Article, Please click here...
Source: IIPM Publication
When you decide the right way ahead, you must stick by it. In that context, Larsen & Toubro’s (L&T) recent move to sell off 21.6% stake in L&T Infrastructure Development Projects Limited to private equity players led by JP Morgan Chase, seems to be doing the contrary. After all, the company had decided previously to be focused on its core business of infrastructure after a series of unsuccessful diversifications. Analysts have already started commenting on how this sale finally marks the beginning of the end of L&T’s infrastructure business. Factually, the infrastructure sector remains the mainstay for L&T, contributing revenues of Rs.112.78 billion, that is, 85% of total group revenues for year ending March 31, 2005 (growth by 7% yoy). Total corporate revenues increased by 35% yoy to Rs.132.69 billion in the same period.
For complete IIPM Editorial Article, Please click here...
Source: IIPM Publication
# posted by IIPM @ 2:41 AM 
