L&T - Delivers on Headline number; Core profitability weak - Edelweiss

L&T reported numbers on expected lines with revenues showing a rise of 10 % YoY and PAT, up 13% YoY, primarily aided by higher other income. Order intake came in better than expected at INR 195bn, which was up 14% YoY. EBIDTA margins dropped 90bps YoY to 10.3 % (adj for MTM forex loss), led by sharp growth in export revenues where LT executed low margin projects.

The management appeared positive wrt future ordering momentum; they maintained revenue and OI guidance at 15-20% for FY13E.

Maintain BUY/SO rating for LT with a TP of INR 1941.

Source : Equity Bulls

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