Larsen & Toubro Ltd. share price target

Topline grows on robust order book and execution progress Revenue for Q1FY22 rose 38.0% YoY to Rs. 29,335cr (-39.0% QoQ), attributed to healthy project execution despite disrupted operations at various locations due to COVID-19. Order momentum impacted by subdued tendering and award activity resulted in sequential dip. Consolidated order book stood at Rs. 3.23tn as on 30th Jun 21, comprising of Infrastructure (76%) and Hydrocarbon (13%) orders. Infrastructure revenue grew 63.3% YoY to Rs. 10,453cr backed by solid execution. Additionally, Power (+101.2% YoY on large wins), Development Projects (+103.2%...

Consolidated net sales (including other operating income) of Larsen & Toubro for the quarter ended June 2021 has increased 38% to Rs 29334.73 crore. Despite challenging times with second wave of Covid and local lockdown affecting operations at many locations the higher revenue was largely attributed to healthy execution. Project progress was impacted with...

Larsen & Toubro (L&T;)'s adj. PAT came in at INR11.7b, missing our estimates by 19%. However, the miss in core E&C; EBITDA was lower at ~6%. The larger miss was reported on account of lower other income and higher tax rates, which is recoverable over the remainder of the year. Also, given that 1Q earnings typically contribute <15% to FY earnings, we refrain from reading too much into the current quarter's headline numbers. Notably, the company has maintained its full-year guidance for low to mid-teen growth...

L&T; Q4 Results, PAT rises 3% YoY to Rs 3,293 cr; Beats Estimates On Order Flow leading to 25% rise in operating profit to Rs6388.93 crore. Other income rose 56% to Rs 1028.26 crore. Provision for interest up 4% to Rs 853.07 crore. Provision for depreciation rose...

L&T;'s consolidated adjusted PAT grew 12% YoY to INR34.2b, 9% above our estimate. PAT in the Core E&C; segment grew 19% YoY to INR28.7b (12% ahead of our estimate). Margin surprise drove earnings beat. Balance Sheet improvement was a huge positive as net D/E (including minorities and adjusted for current investments) improved to 1x from 1.5x in FY20. This was driven by: a) completion of the sale of the E&A; business, b) working capital cycle improvement to 22.3% of sales from 23.7%. FY21 brought out the core strengths of the L&T;'s re-aligned business model as a...

Cash balance improved to ~Rs1.6trn in FY21 from ~Rs1.5trn in FY20, owing to rise in customer collection and government initiatives. L&T; reported steady quarter led by ramp up in execution across all business verticals. Margins were higher due to change in job mix, better operational efficiencies and several projects reaching margin threshold. Despite pandemic, OI came in at ~Rs1.8trn owing picking up in awarding activity in...

Larsen & Toubro (LT) has faced multiple challenges like slow growth, margin pressure, expanded working capital, high debt and low RoE in the recent past.

L&T; Q3 PAT rises 5% YoY to Rs 2467 cr, in line with estimates Total income decline by 1.18% year-on-year to Rs 35596.42 crore in Q3 December 2020. Profit before tax (PBT) rose 14.18% year-on-year to Rs 3,680.50 crore in Q3 December 2020. Total tax expense for the quarter jumped 46.37% to Rs 1,040.75 crore as against Rs 711 crore in Q3...

L&T; has a strong project pipeline for the upcoming quarter with strong domestic ordering activity seen in Infra and Hydrocarbon. Also, it stands to benefit from government support for key sectors, such as Infrastructure. We reiterate our BUY rating on the stock with a rolled...

Improvement in Revenues with labor availability improving execution Consolidated sales came in at ~`356bn (-2% YoY) mainly driven by growth across segments like Power (+29% YoY), IT&TS; (+7% YoY) and Hydrocarbon (~+1% YoY).Heavy engg (flat YoY), Infra (-7% YoY) and Development Projects (-34% YoY) were the draggers. EBITDA grew by 4% YoY to `42.8bn with EBITDA margins expanding by 66bps YoY to 12% led by better topline & operational performance. PBT was up by 14% YoY to `36.8bn. During the quarter,...