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L&T: Investment demand yet to pick up - Views on News from Equitymaster
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L&T: Investment demand yet to pick up
Aug 2, 2016

Larsen & Toubro (L&T) has announced first quarter results of financial year 2016-2017 (1QFY17). The company has reported 9% YoY growth in sales while profits have grown 19.6% YoY. Here is our analysis of the results.

Performance summary
  • Consolidated net sales for the company grew by 9% YoY during 1QFY17.
  • Operating expenses for the company increased by 8.5% YoY. Operating profit grew 16.1% YoY in 1QFY17 as a result. Consequently, operating margin expanded to 8.7% from 8.2% in the corresponding quarter of last year.
  • Net profit grew by 19.6% YoY during the quarter.

    Financial performance snapshot (Consolidated)
    (Rs m) 1QFY16 1QFY17 Change
    Sales 200,482 218,738 9.1%
    Expenditure 184,072 199,688 8.5%
    Operating profit (EBDITA) 16,411 19,050 16.1%
    Operating profit margin (%) 8.2% 8.7%
    Other income 2,833 3,024 6.8%
    Interest 3,893 3,375 -13.3%
    Depreciation 4,658 4,648 -0.2%
    Exceptional items -
    Profit before tax 10,692 14,052 31.4%
    Tax 4,282 5,488 28.2%
    Extraordinary items, net of tax 0 0
    Profit after tax/(loss) 6,410 8,564 33.6%
    Net profit margin (%) 3.2% 3.9%
    Share in profit of associates -1,963 -1,736
    Minority interest 258 732
    Profit after share of associates & minority interest 4,189 6,096 45.5%
    Other comprehensive income -60 -1,156
    Total income 4,129 4,940 19.6%
    No. of shares 932.0
    Basic reported earnings per share (Rs)* 55.5
    P/E ratio (x)* 26.9

    (*on a trailing twelve month basis, with 9mFY16 earnings as per Ind GAAP and 1QFY17 earnings as per Ind AS)

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Oct 18, 2017 02:39 PM

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