ABSTRACT
The construction sector comprises the infrastructure and real estate sectors. This chapter presents the analyses of the financial statements of two companies from the infrastructure sector, Larsen & Toubro Ltd (L&T), a multinational conglomerate and one of the largest companies in India's private sector, and the Hindustan Construction Company (HCC), a leading Indian company in the infrastructure industry. The main areas of focus in the infrastructure sector will be on roads and bridges, railways, seaports, airports, inland waterways, power, urban transport, solid waste management, water supply, and setting up of Special Economic Zones (SEZ). For comparing the profitability of these companies the following are noted: Cash Operating Profit Ratio (COPR), Net Profit Margin (NPM), and Operating Ratio (OR). The chapter discuses return on investments (ROI) Return on equity (ROE) and Du-Pont Analysis. It focuses on revenue recognition, research and development, taxation and fixed assets.
