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L&T: Demonetisation Blues - Views on News from Equitymaster
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L&T: Demonetisation Blues
Feb 8, 2017

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.

Performance summary

Consolidated net sales for the company grew by 1.7% YoY during 3QFY17.

Operating expenses for the company decreased by 0.2% YoY. Operating profit grew 26% YoY in 3QFY17 as a result. Consequently, operating margin expanded to 8.7% from 7% in the corresponding quarter of last year.

Net profit grew by 38.9% YoY during the quarter.

Financial performance snapshot (Consolidated)
(Rs m) 3QFY16 3QFY17 Change 9mFY16 9mFY17 Change
Sales 255,910 260,182 1.7% 684,333 726,607 6.2%
Expenditure 238,020 237,643 -0.2% 632,184 664,707 5.1%
Operating profit (EBDITA) 17,890 22,539 26.0% 52,149 61,900 18.7%
Operating profit margin (%) 7.0% 8.7% 7.6% 8.5%
Other income 5,781 5,257 -9.1% 15,125 15,511 2.6%
Interest 4,043 3,788 -6.3% 12,157 10,432 -14.2%
Depreciation 3,680 7,223 96.3% 13,624 16,472 20.9%
Exceptional items 0 0 457 4,024 780.8%
Profit before tax 15,948 16,785 5.2% 41,951 54,532 30.0%
Tax 5,124 4,399 -14.2% 14,753 16,694 13.2%
Extraordinary items, net of tax 0 0 0 0
Profit after tax/(loss) 10,825 12,386 14.4% 27,197 37,838 39.1%
Net profit margin (%) 4.2% 4.8% 4.0% 5.2%
Share in profit of associates -2,942 -1,484 -6,574 -4,787
Minority interest 879 1,177 1,647 2,885
Profit after share of associates & minority interest 7,003 9,725 38.9% 18,977 30,166 59.0%
Other comprehensive income 676 -1,605 -960 -1,980
Total income 7,680 8,119 5.7% 18,017 28,187 56.4%
No. of shares 932.7
Basic reported earnings per share (Rs)* 57.9
P/E ratio (x)* 25.9

(*on a trailing twelve month basis)

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Oct 19, 2017 07:33 PM

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