L&T - Healthy Q3 Margins, Metro Impacts Cashflows: ICICI Securities
Larsen & Toubro Ltd. employees work on a construction site. (Photographer: Adeel Halim/Bloomberg News)

L&T - Healthy Q3 Margins, Metro Impacts Cashflows: ICICI Securities

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ICICI Securities Report

Larsen and Toubro Ltd. witnessed healthy margins in Q3 FY21 and execution is gradually returning to normalcy.

Strong order intake was the key highlight of the quarter. Hyderabad metro operations continue to be under stress with approximately Rs 4.5 billion of cash burn per quarter, and this is impacting overall cashflows.

Working capital is stable and the company continues to support its suppliers given the continuing liquidity challenges.

Orders worth ~ Rs 32 billion for high-speed rail project and a mega order from HPCL Rajasthan refinery were booked in Q3 FY21; order pipeline for Q4 FY21 is at Rs 2.65 trillion.

Click on the attachment to read the full report:

ICICI Securities L&T Q3FY21 Result Update.pdf

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