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L&T Q1 Review - Look Beyond The Temporary Blip: Dolat Capital

L&T Q1 Review - Look Beyond The Temporary Blip: Dolat Capital

Larsen & Toubro Ltd. employees work in the heavy engineering division in Hazira, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)
Larsen & Toubro Ltd. employees work in the heavy engineering division in Hazira, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Larsen and Toubro Ltd.’s revenues grew 38% y-o-y, however came in 6%/2% below than our/ consensus estimates as project progress was impacted with regional lockdowns, shortage of industrial oxygen and supply chain disruptions.

Ebitda increased by 96% y-o-y (down 8%/down 7% versus our/consensus estimate) with margin expansion of 319 basis points y-o-y, as rising input cost was offset by better job mix and higher recovery of overheads.

Meanwhile, the Larsen and Toubro registered an order inflow of Rs 266 billion, up by 13% y-o-y.

Though adjusted profit after tax was up by 9.8 times y-o-y, it was 32%/22% below our/ consensus estimate mainly due to the higher tax rate (~32%), higher depreciation caused by metro capitalisation and lower other income.

Click on the attachment to read the full report:

Dolat Capital Larsen & Toubro Q1FY22 Result Update.pdf

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