Larsen & Toubro - 1QFY21 results - Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

"On a consolidated basis for Q1FY21, L&T revenue declined by 28.3% YoY to Rs.21,260 crore mainly due to complete lockdown in India for the first 20 days of April and subsequently due to supply chain and labour issues at sites. International revenue contributed 45% of revenue for the quarter compared to 31% in Q1FY20. EBIDTA margin declined to 7.6% from 10.4%. EBIDTA and PAT slumped by 47.1% and 79.4% for the quarter respectively. Company reported PAT of Rs.303 crore including exceptional gain of Rs.225 crore. Overall, revenue, EBIDTA and PAT were above Bloomberg consensus. Company won ~ Rs. 23,600 crore order for the quarter, order inflow declined by 39% YoY. Due to slow execution during the quarter, order book increased by 4% to ~ Rs.305,100 crore. In the Infrastructure segment, early signs of ordering activity pick up in domestic as well as international is visible to the Company. Working capital has further deteriorated to 26.8% for the quarter (23.9% in Q1FY20). We expect ordering and execution activity to improve gradually over the next few months provided that no second wave of coronavirus outbreak happens. We are positive on the prospects of the Company considering that it has a robust order book, it is trading at a significant discount to its historical average valuation and offers favorable risk reward from current levels."

Shares of LARSEN & TOUBRO LTD. was last trading in BSE at Rs.920.95 as compared to the previous close of Rs. 937.8. The total number of shares traded during the day was 220012 in over 9821 trades.

The stock hit an intraday high of Rs. 940 and intraday low of 910.2. The net turnover during the day was Rs. 203082596.

Source : Equity Bulls

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