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.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax & extraordinary income
Profit on transfer of undertaking
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Earnings per share*
Current P/e ratio
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.
Larsen & Toubro (L&T) has announced third quarter results of financial year 2016-2017 (3QFY17). The company has reported 1.7% YoY growth in sales while profits have grown 38.9% YoY. Here is our analysis of the results.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407