Standalone numbers disappoint: For 3QFY2016, Larsen & Toubro (L&T;) reported 1.5% yoy decrease in its top-line to Rs14,774cr, reflecting revenue de-growth across Infrastructure and Others segments. The EBITDA margin for the quarter is down 368bp yoy to 6.8%, on account of surge in SAO and employee expenses. The PAT came in at Rs791cr, down 25.3% yoy, reflecting poor operational performance. Order inflows for the consolidated entity in 9MFY2016 declined 13.2% yoy to Rs93,524cr. The order backlog stands at Rs2,56,458cr, thereby giving revenue visibility for over the next 10 quarters. Hydro-carbon reports minimal losses: Despite completion of legacy projects in the international business, strong execution of ongoing projects helped the Hydro-carbon segment report revenues of Rs2,184cr in 3QFY2016. For the quarter, this segment reported a turnaround in its EBIT to Rs39cr vs a loss of Rs137cr in 3QFY2015. On the whole, this segment ended 9MFY2016 with an EBIT level profit of Rs77cr. Key Positives: Surprise on the order inflow numbers for the quarter, turnaround in the Hydro-carbon segment; net WC cycle at 24% of sales. Key Negatives: Lowering of order inflow guidance for FY2016, revenue degrowth in 3QFY2016. Outlook and valuation: L&T;s diversified presence and an anticipated recovery in the capex...