L&T's 3QFY01 net propels 72% - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

L&T's 3QFY01 net propels 72%

Jan 30, 2001

Larsen & Toubro Limited has posted a net profit of Rs 333 m in quarter ended December 31, 2000. This is a jump of 72% YoY. The company’s turnover improved by 12% during the period.

(Rs m) 3QFY00 3QFY01 Change 9m FY00 9m FY01 Change
Gross Sales 17,299 19,412 12.2% 50,476 53,458 5.9%
Other Income 260 219 -15.7% 662 1,179 78.1%
Total expenditure 15,737 17,272 9.8% 44,420 48,589 9.4%
Operating Profit (EBDIT) 1,562 2,140 37.0% 6,055 4,868 -19.6%
Operating Profit Margin (%) 9.0% 11.0%   12.0% 9.1%  
Interest 918 1,208 31.6% 2,736 3,070 12.2%
Depreciation 689 789 14.5% 2,033 2,282 12.3%
Profit before Tax & extraordinary income 215 362 68.3% 1,949 696 -64.3%
Profit on transfer of undertaking - -   127 -  
Tax 22 29 34.3% 214 49 -77.1%
Profit after Tax/(Loss) 193 333 72.1% 1,862 647 -65.3%
Net profit margin (%) 1.1% 1.7%   3.7% 1.2%  
No. of Shares (eoy) (m) 249.0 249.0   249.0 249.0  
Earnings per share*       10.0 3.5  
*(annualised)            
Current P/e ratio         74.1  

This is quite a turnaround for the company, which showed an 81% decline in net profit in the first half of FY01. Improved cement realisations have helped the company bounce back. However, even this remarkable turnaround has failed to improve the company's consolidated nine month figures.

On a nine month basis, the company's profits declined by 65% YoY, on the back of a 6% growth in turnover.

The future of its cement business is still not clear. On the one hand, the company's board approved the demerger of cement business subject to necessary approvals. The process of finalisation of scheme of demerger and identification of strategic partner is in progress. On the other hand, L&T commissioned its cement grinding plant of 1 million tonne capacity at Arakkonam in Tamil Nadu in December 2000. With this unit, the total cement capacity of the company has gone up to 15 million tonnes p.a., making it the largest cement company in India.

The L&T stock trades at a P/e multiple of 74 times in annualised nine month FY01 earnings, which looks high. But this is probably because of the expectations that the turnaround in its cement earnings will continue for some time to come.

Equitymaster requests your view! Post a comment on "L&T's 3QFY01 net propels 72%". Click here!

  

More Views on News

L&T Announces Quarterly Results (1QFY22); Net Profit Up 143.9% (Quarterly Result Update)

Jul 31, 2021 | Updated on Jul 31, 2021

For the quarter ended June 2021, L&T has posted a net profit of Rs 16 bn (up 143.9% YoY). Sales on the other hand came in at Rs 293 bn (up 38.0% YoY). Read on for a complete analysis of L&T's quarterly results.

L&T 2020-21 Annual Report Analysis (Annual Result Update)

Jul 26, 2021 | Updated on Jul 26, 2021

Here's an analysis of the annual report of L&T for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of L&T. Also includes updates on the valuation of L&T.

Why L&T Shares Fell 3% Despite Strong Operating Performance (Views On News)

May 17, 2021

Covid second wave is expected to temporarily slow down L&T's growth momentum, especially during the first quarter of FY22.

Nuvoco Vistas Makes a Lackluster Debut. Stock Lists at 17% Discount (Views On News)

Aug 23, 2021

Nuvoco Vistas witnessed a tepid listing on the bourses despite strong outlook for the cement sector.

Shree Cement Shares Tanks on Poor Operating Performance in the June Quarter (Views On News)

Aug 10, 2021

Shree Cement lags peers in volume growth.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

L&T SHARE PRICE


Dec 6, 2021 03:36 PM

TRACK L&T

L&T - TRANSWIND INFRASTRUCTURES COMPARISON

COMPARE L&T WITH

MARKET STATS