NSE Symbol: LT | BSE Code: 500510
In the year 1938, two engineers Henning Holck Larsen and Soren Kristian Toubro are the two engineers who founded Larsen & Toubro in India. The organization began as a Danish manufacturer representative of dairy equipment. In 1939, during the Second World War, there were restrictions on imports, and that is when the partners opened a tiny workshop for undertaking jobs and providing service facilities. When Germany invaded Denmark in the year 1940, the supply of the Danish products stopped. The ships needed repair and L&T were given an opportunity. Thus, the Hilda Limited was formed for handling these operations. Repair and fabrication of vessels were also being done which marked the expansion of the organization.
In the year 1944, the partners established ECC, and at that time the organization focussed much on the construction projects. At present, ECC is Larsen & Toubro's construction division. After India was free from the British Rule, Larsen & Toubro set up their branches in Kolkata, Chennai, and New Delhi. In the year 1948, the Mumbai office was established. In the year 1950, L&T turned into a public company with a paid-up capital of Rs.20 lakh. The sales turnover for Larsen & Toubro stood at Rs.1.09 crore that year.
Larsen & Toubro Limited (L&T) is an Indian multinational organization headquartered in Mumbai, Maharashtra. Larsen and Toubro have its business spread out in different sectors like manufacturing goods, construction, engineering, IT, and financial services. The wholly owned subsidiaries of Larsen & Toubro include Larsen & Toubro Infrastructure Finance Company Limited, Larsen & Toubro Finance Limited, Larsen & Toubro Investment Management Limited, Larsen & Toubro Capital Markets Limited, and Larsen & Toubro Housing Finance Limited.
The finance arm of Larsen & Toubro is listed on both BSE and NSE. It is also registered as an NBFC and designated as a CIC under RBI. The different subsidiaries mentioned above are the channels through which Larsen & Toubro carries out its business. The brand name of Larsen & Toubro Finance Holdings Limited is L&T Financial Services.
Mr. S. V. Haribhakti:
The Non-Executive Chairman of L&T Financial Services is Mr. Shailesh Haribhakti. He is a fraud examiner, cost accountant, CA, financial planner and a certified internal auditor. He has experience of 4 decades, and he has led different innovative services successfully. His passion and focus at present is digitization, governance and engaged investing.
Mr. Dinanath Dubhashi:
Mr. Dinanath Dubhashi holds the post of the CEO and MD at Larsen & Toubro Finance Holdings. He has immense experience in different domains of financial services like cash management, corporate banking, retail lending, credit rating, and rural financing. Since the year 2007, he has been working with Larsen & Toubro Financial Services. He has helped the company grow by scaling up retail business operations. Under the leadership of Mr. Dubhashi, there has been inorganic growth and organic growth for the retail business.
Mr. R. Shankar Raman:
Mr. R. Shankar Raman holds the post of CFO at Larsen & Toubro Financial Services. Mr. Raman is a Non-Executive Director on the Larsen & Toubro board. In the year 1994, he had joined the Larsen & Toubro Group. He has an experience of around 35 years in the finance and management sector. He is a CA and attained a Commerce degree from Madras University.
Mr. P. V. Bhide:
Mr. Bhide has played the significant role in different capacities while he was on several government positions. He has experience of nearly four decades. Some of Mr. Bhide's functions include Finance Ministry, Secretary of the Department of Revenue; Disinvestment department, Joint Secretary, and Secretary, Finance Ministry; Home Affairs Ministry, Additional Secretary. Mr. Bhide is a retired IAS officer.
Mr. Kailash Kulkarni
Mr. Kulkarni is the Chief Executive of Investment Management and the Marketing Group Head. He is responsible for driving the business growth. He also leads the marketing initiative for Larsen & Toubro Financial Services. The Investment Management department of L&T has grown substantially under his leadership. He has an experience of more than 25 years. Before joining L&T, he led the Sales department at Kotak Mahindra Asset Management.
Mr. Sachin Joshi
Mr. Joshi designated as CFO with L&T Financial Services Ltd. He has more than 27 years of experience in crisis management, risk and credit control, public listing, strategic planning, business and treasury operations and human resource management. Mr. Joshi worked with Aditya Birla Finance as the CFO before joining L&T and headed verticals including Admin, Treasury, Finance, etc. He is a Cost Accountant as well as a Chartered Accountant.
Some of the indices in which L&T Financial Services are listed, mentioned below:
The company is also listed on various stock exchange markets. Some of these are mentioned below:
Listing code of L&T:
The sales turnover as of March 2017 for L&T Finance Holdings stood at more than Rs.277 crore. The other income of the organization during that year was above Rs.37 crore. The total revenue of the company went to a little more than Rs.314 crore.
In 2017, the employee cost of the organization was Rs.11.57 crore. Admin and Selling expenses together came up to a Rs.0.26 crore. The miscellaneous costs for Larsen & Toubro Finance stood at Rs.11.99 crore. The total loss for the organization was Rs.23.82 crore in 2017.
The sales turnover of L&T Finance went up to Rs.348.50 crore In 2016. Other Quarter income in the year 2016 went up to more than Rs.78 crore. So, the total revenue of the company stood at above Rs.427 crore.
The employee cost has substantially higher in 2016 when compared to 2017. It went up Rs.20.33 crore. Admin expenses and Selling expenses together stood at Rs.1.20 crore. The miscellaneous costs for L&T Financial Services were Rs.10.62 crore, slightly lesser as compared to 2017. However, the total expenditure in 2016 was more than Rs.32 crore, which is approximately Rs.10 crore more than the amount spent in 2017.
In 2015, Rs.290.62 crore was the net sales turnover for L&T Finance Holding Ltd. Other revenue rose to an amount of Rs.36.31 crore. Thus, the total income of the organization held at Rs.326.93 crore.
The total expenses of the company held at Rs.35.53 crore, out of which Rs.17.04 crore was the employee cost of L&T Finance, and Rs.18.49 crore was the miscellaneous expenses. No expenses were reported in 2015 associated with Admin and Selling.
On 1 January 2018, the Open Price of L&T Finance stocks was Rs.177.50 at Bombay Stock Exchange and Rs.174.00 at National Stock Exchange. The Close Price, held at Rs.172.90 at both BSE and NSE.
By the month end, the Open Price dropped slightly at both BSE and NSE, and it held at Rs.175. The Close Price remained the same at both BSE and NSE. On 31 January 2018, the High Price for L&T Finance Holdings stocks was recorded at Rs.177.60 at BSE and Rs.177.65 at NSE.
On the first day of February, the Open Price of the stocks stood at Rs.173.15 at NSE and Rs.173 at BSE. The Close Price was recorded at Rs.171.25 and Rs.171.05 at BSE and NSE, respectively. The High Price was Rs.175.50 at both NSE and BSE.
By the end of February 2018, the Open Price went down to Rs.164 at BSE and Rs.163.75 at NSE. The Close Price at BSE stood at Rs.162.55, whereas at NSE, it was Rs.162.30. The High Price rose at Rs.164.25 and Rs.164.20 at BSE and NSE, respectively. On 28 February 2018, the Lowest Price for the stocks was Rs.161.40 (BSE) and Rs.161.10 (NSE).
Larsen & Toubro Finance Holdings is a prestigious organization and registered under the RBI. Since Return on equity has been the focus of the organization, the prices of the shares have been doubled. Investment towards L&T Financial Services stocks can be considered for a long term.
Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.
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