*Larsen & Toubro Ltd.* | *CMP* Rs. 1431 | *M Cap* Rs. 200769 Cr | *52 W H/L* 1607/1183
(Nirmal Bang Retail Research)
*Result is ahead of expectations*
*Infrastructure performance remains muted*
*Hydrocarbons posts strong performance*
*Outlook: Positive*
Revenue from Operations came at Rs. 35329 Cr (19% QoQ, 10% YoY) vs expectation of Rs. 35317 Cr, QoQ Rs. 29636 Cr, YoY Rs. 32081 Cr
*Revenue ex-IT & ex-Financial Services constituted revenue mix of 75% and grew by 10% YoY*
Infra (45% mix) +9%, Hydrocarbon (12% mix) +21%, Other smaller segments combined (18% mix) +6%, IT (16% mix) +64%, Financial Services (9% mix) +10%
EBIDTA came at Rs. 4022 Cr (31% QoQ, 14% YoY) vs expectation of Rs. 4060 Cr, QoQ Rs. 3068 Cr, YoY Rs. 3542 Cr
EBITDA Margin came at 11.4% vs expectation of 11.5%, QoQ 10.4%, YoY 11%
Infra PBIT (24% mix) grew 14% YoY, margins were at 5.9% vs 5.6% YoY
Hydrcarbon PBIT (12% mix) grew 61%, margins improved to 11.7% from 8.8% YoY on the back of efficient execution and some favourable variation claim settlements
Adj. PAT came at Rs. 2527 Cr vs expectation of Rs. 2142 Cr, QoQ Rs. 1566 Cr, YoY Rs. 1936 Cr
Stock is trading at P/E of 19.7x FY20E EPS
*Order Book Details*
• Order inflows increased by 20% YoY at Rs. 48,292 Cr.
• Order book stands at Rs. 3,03,222 Cr (+8% YoY & +3% QoQ)
• Infra segment order book stood at Rs. 2,14,898 Cr (-2% YoY) and registered an order inflow of Rs. 15,669 Cr, a decline of 33% YoY
• Hydrocarbon segment order book stood at Rs. 50,531 Cr (+81% YoY) and formed 17% mix of total order book from 10% mix in Q2FY19. Order inflows increased by 4.4x to Rs. 14,851 Cr on the back of receipt of a mega order in Onshore vertical in the domestic market as well as a large order in Offshore vertical in an international geography.
*Outlook*
Company maintained its earlier Guidance