BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Larsen & Toubro Ltd.’s Q1 FY21 core operating performance was a welcome surprise as engineering and construction Ebitda came in 49% above our expectation, despite the low . Losses in L&T Finance Holdings offset the strong show in the Information Technology business, limiting consolidated adjusted profit after tax to Rs 0.7 billion. Labour availability has improved and is now adequate given the monsoon season. Despite the current crisis, L&T has impressed with its liquidity management, keeping its working capital and net cash position intact, and taking advantage of the low interest rate scenario.
While challenges related to order inflows, execution, and working capital cannot be completely ruled out yet, L&T has demonstrated a good show in mitigating such risks thus far. Building in further conservatism, we cut our earning per share estimates by 4–5% over FY21/FY22E.
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