Infrastructure behemoth Larsen & Toubro (L&T) on Friday reported a 14% degrowth in profit after tax (PAT) for the quarter ended September at Rs 978 crore.
The performance, which came despite a challenging domestic business environment, was higher than street estimates and lifted the company’s stock 4.19% to Rs 872.35 at close of trading.
Revenue from operations (net sales), though, was up 10% at Rs 14,510 crore – an improvement top company officials attributed to a pick-up in execution of projects.
“Upward trend in order inflow was sustained in the second consecutive quarter of the year,” K Venkataramanan, CEO, L&T, said.
Order inflow at Rs 26,533 crore was up 27%, translating into a cumulative order inflow of Rs 51,692 crore for first half of the fiscal. The order book, at Rs 176,036 crore at the end of September, was up 11% on-year, with the share of international orders at 15%.
“Revenues have improved as compared to first quarter and we have done better in the second quarter with 10% growth. Overall, for half year, the revenues have grown 8%, which is in line with our plans wherein the revenues will continue to gather momentum over the rest of the two quarters to reach the targeted levels of 15% this fiscal,” said R Shankar Raman, whole-time director and CFO, L&T.
Industry experts tracking the company said the numbers were better than expected.
While maintaining a buy on the stock, Rikesh Parikh VP - institution corporate broking, Motilal Oswal Securities, said, “While PAT was ahead of estimate, led by higher other income, Ebitda margin was marginally lower than our estimate of 10%. Order intake was also marginally lower than order intake announced and total first-half order intake stands at 49% of full-year guidance.”
The performance, which came despite a challenging domestic business environment, was higher than street estimates and lifted the company’s stock 4.19% to Rs 872.35 at close of trading.
Revenue from operations (net sales), though, was up 10% at Rs 14,510 crore – an improvement top company officials attributed to a pick-up in execution of projects.
“Upward trend in order inflow was sustained in the second consecutive quarter of the year,” K Venkataramanan, CEO, L&T, said.
Order inflow at Rs 26,533 crore was up 27%, translating into a cumulative order inflow of Rs 51,692 crore for first half of the fiscal. The order book, at Rs 176,036 crore at the end of September, was up 11% on-year, with the share of international orders at 15%.
“Revenues have improved as compared to first quarter and we have done better in the second quarter with 10% growth. Overall, for half year, the revenues have grown 8%, which is in line with our plans wherein the revenues will continue to gather momentum over the rest of the two quarters to reach the targeted levels of 15% this fiscal,” said R Shankar Raman, whole-time director and CFO, L&T.
Industry experts tracking the company said the numbers were better than expected.
While maintaining a buy on the stock, Rikesh Parikh VP - institution corporate broking, Motilal Oswal Securities, said, “While PAT was ahead of estimate, led by higher other income, Ebitda margin was marginally lower than our estimate of 10%. Order intake was also marginally lower than order intake announced and total first-half order intake stands at 49% of full-year guidance.”
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