Engineering and construction major Larsen & Toubro 's (L&T) net profit grew higher than expected by 16%, at Rs 864 crore on the back of a healthy orderbook and good progress in execution of various projects. The company's sales also grew 26% to Rs 11,955 crore.
Revenues too rose better than expected by 26.07% YoY to Rs 11,955 crore in the first quarter of FY13. Analysts on an average had expected net profit at Rs 827 crore and revenues at Rs 10,951 crore during the same period.
However, company disappointed the street by its EBITDA margin that came in at 9.1%, a drop of 280 basis points YoY. Analysts had forecast it at 11.5% for the quarter.
Other income of the company jumped 124.7% to Rs 606 crore from Rs 269.7 crore year-on-year.
The company said its order inflow stood at Rs 19,594 crore, which is a growth of 21% (YoY). The order inflow and sales estimates are marginally above the revenue and order inflow guidance given by the company at the close of the preceding financial year. Analysts were expecting L&T to report order inflows of around Rs 18,500 crore - Rs 19,000 crore.
On its business outlook, the company said delayed policy measures, slowdown in industrial production, elevated interest rates and liquidity concerns have moderated the growth prospects in the domestic economy. This together with the uncertainties in the global market has impacted the investment sentiment, thereby restricting the business opportunities for the capital goods industry.
On the international front, select markets in the middle-east, south-east Asia and CIS countries hold promising prospects and the company is strengthening its position there.
The stock trimmed losses from 1.6% to 1.18% after good net profit and revenues, but lower than expected EBITDA margin immediately pulled the stock down by 2.60%. It was trading at Rs 1,354.65 at 13:41 hours IST.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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