LARSEN & TOUBRO (LT) Q1 RESULTS FY18-19: KEY POINTS
Engineering major, Larsen & Toubro Limited (LT) posted robust numbers – Order Inflow 37%; Revenue 18%, and Overall PAT 36%. Here are the details.
Revenue
Larsen & Toubro Limited recorded Consolidated Gross Revenue of INR 28,283 Cr for the quarter ended June 30, 2018, registering a growth of 18% on a YOY basis, thanks to –
(1) Pick up of execution momentum in project businesses,
(2) Robust growth in services business, and
(3) Recognition of revenue on completed performances in Realty business under the newly introduced accounting standard for revenue recognition.
International revenue during the quarter at INR 9,669 Cr constituted 34% of the total revenue in line with previous year.
Profit
Consolidated Profit After Tax (PAT) for April to June 2018 period stood at INR 1,215 Cr was higher by 36% vis-a-vis PAT of INR 893 Cr for the corresponding quarter of the previous year
Order Inflow
- Larsen & Toubro Limited won new orders worth INR 36,142 Cr at the group level during the quarter ended June 30, 2018, recording a growth of 37%, with pick-up in domestic ordering activity during the quarter.
- International orders at INR 9,404 Cr constituted 26% of the total order inflow.
Infrastructure, Hydrocarbon and Heavy Engineering businesses largely contributed to the growth in order inflows during the quarter.
Order Book
The Consolidated Order Book for the company stood at INR 271,732 Cr as at June 30, 2018. International Order Book constituted 23% of the total Order Book.
Company Profile: Larsen & Toubro Limited (LT)
Headquartered in Mumbai, Larsen & Toubro Limited (LT) is one of the largest and most respected companies in India’s private sector. With over 75 years of a strong, customer focused approach and a continuous quest for world-class quality, L&T has unmatched capabilities across Technology, Engineering, Construction and Manufacturing, and maintains a leadership in all its major lines of business. The Company addresses critical needs in key sectors – Hydrocarbon, Infrastructure, Power, Process Industries and Defence – for customers in over 30 countries around the world.
Every aspect of L&T’s businesses is characterised by professionalism and high standards of corporate governance. Sustainability is embedded into our long-term strategy for growth.
Stock Price Movement
The stock ended flat to INR 1321 when the market closed! During April to June 2018 period, the share price of Larsen & Toubro Limited tumbled more than 2 percent.
Outlook
Domestic market which witnessed some short term disruptions on implementation of reforms like RERA, GST, Demonetisation, is gathering investment momentum.
Though private sector investment is still muted, Government is focused on development of infrastructure and energy facilities to enable healthy and sustainable economic growth.
Rural reforms continue to get priority attention, with larger allocations towards irrigation measures, rural road connectivity and last mile rural electrification.
The momentum is expected to continue despite macro-economic volatility due to oil prices, currency and potential global tariff barrier conflicts. The recent surge in oil prices is, however, expected to incentivize infrastructure and hydrocarbon capex in the Middle East region.
Amidst this backdrop, the Company continues to focus on profitable execution of its large Order Book, continuous improvement of working capital cost competitiveness. The Company has a robust prospect base and is confident of sustaining its growth momentum by utilizing the emerging opportunities, with an aim at improving shareholder returns on a sustainable basis.
Also Read –
1) Finblab’s Valuepick Stock for the month of July 2018 – CEAT Limited
2) IPO – HDFC AMC Limited
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