BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Larsen and Toubro Ltd.’s Q2 FY23 profit after tax grew 22.5% YoY to Rs 22.3 billion (our estimate: Rs 21.7 billion) led by strong execution. Consolidated revenue/ Ebitda grew by 23%/22.6% YoY to Rs 428 billion/Rs 49 billion (our estimate: Rs 394 billion/Rs 47 billion) with Ebitda margin flat YoY at 11.5% (our estimate: 12%).
Engineering and construction revenue/Ebitda grew by 23.6%/10.2% YoY to Rs 281 billion/Rs 23 billion with Ebitda margin down 100 bps YoY at 8.2% impacted by job mix, cost pressures and closure costs in few orders.
L&T’s order inflows surprised positively and grew 23% YoY to Rs 519 billion with order backlog at Rs 3.7 trillion (up 12.7% YoY, 3.2 times E&C revenue).
Net working capital improved to 20.2% from 20.9% in June-22. FY23 guidance maintained at 12-15% revenue/order inflow growth with bias for higher end of the range. Earlier E&C margin guidance of 9.5% at risk due to weak margins in H1 and FY22 margin of 9.2% looks more feasible in our view.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.