L&T - Q2FY21 Earnings First Cut: Beat on EBITDA margins - YES Securities

- Revenues declined 12% yoy (-1.6% vs our est.) as core revenues (ex-services) were down 18.4% yoy while IT services posted 5% yoy growth.

- Order inflow stood at Rs280.4bn, down 42% yoy (vs our estimates of Rs250bn). International orders were at Rs89bn (36% of the total order inflow). Infrastructure segment secured orders of Rs145bn, down 7% yoy. Major orders received included an international order in water effluent treatment vertical, domestic orders for rural water supply schemes and some international orders in power T&D. International orders at Rs40bn constituted 28% of the total.

- Consolidated Order Book stands at Rs2,989bn with international order book constituting 24% of the total.

- EBITDA came in at Rs33.4bn (+10% vs our est.), down 17% yoy.

- Infra EBIT margins down 93bps yoy at 5%

- Adjusted PAT came in at Rs11bn, down 52% yoy (-8% vs our est.) due to higher depreciation (+13% yoy) & tax outgo of Rs6.7bn.

- Reported PAT stood at Rs55.2bn, up 118% yoy.

- Exceptional item (post tax) of Rs37.3bn comprises of impairment of funded exposure in the heavy forgings facility joint venture and impairment of assets in the power development business.

- Declared special dividend of Rs18/share.

Shares of LARSEN & TOUBRO LTD. was last trading in BSE at Rs.983.65 as compared to the previous close of Rs. 982.45. The total number of shares traded during the day was 547847 in over 23073 trades.

The stock hit an intraday high of Rs. 994.85 and intraday low of 974.15. The net turnover during the day was Rs. 537874620.

Source : Equity Bulls

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