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Result Review
L&T
L&T posted a mixed set of numbers with disappointment on the top-line front and strong
EBITDA margin for 4QFY2011. The top line grew by 13.2% yoy to `15,384cr (`13,585cr),
against our expectations of `16,334cr. On the operating front, the company managed to
improve its margin to 15.2% (15.1%) against all odds, considering that this quarter was
marred by high commodity prices and inflation, among others. Further, reported PAT got
an added boost by higher other income and sale of investments to `1,685cr (`1,438cr).
The most heartening factor was order inflow for the quarter at `30,281cr (27% yoy
growth), which was ahead of our and street expectations. Order inflow and outstanding
order book for FY2011 stood at `79,769cr and `1,30,217cr, respectively (3.0x FY2011
revenue), with majority of contribution (~70% combined) coming from the infrastructure
and power segments. Also, guidance given by management on the order inflow front for
FY2012 is encouraging at 15–20%, given the current macro headwinds faced by the
economy. Further, management guided for robust top-line growth of 25% for FY2012,
which is also positive. L&T continues to be our top pick. We maintain our Buy view on the
stock; however, the target price is under review.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Result Review
L&T
L&T posted a mixed set of numbers with disappointment on the top-line front and strong
EBITDA margin for 4QFY2011. The top line grew by 13.2% yoy to `15,384cr (`13,585cr),
against our expectations of `16,334cr. On the operating front, the company managed to
improve its margin to 15.2% (15.1%) against all odds, considering that this quarter was
marred by high commodity prices and inflation, among others. Further, reported PAT got
an added boost by higher other income and sale of investments to `1,685cr (`1,438cr).
The most heartening factor was order inflow for the quarter at `30,281cr (27% yoy
growth), which was ahead of our and street expectations. Order inflow and outstanding
order book for FY2011 stood at `79,769cr and `1,30,217cr, respectively (3.0x FY2011
revenue), with majority of contribution (~70% combined) coming from the infrastructure
and power segments. Also, guidance given by management on the order inflow front for
FY2012 is encouraging at 15–20%, given the current macro headwinds faced by the
economy. Further, management guided for robust top-line growth of 25% for FY2012,
which is also positive. L&T continues to be our top pick. We maintain our Buy view on the
stock; however, the target price is under review.
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