L&T Q2 Review - Core Earnings To Gather Momentum, Attractive Valuations: Dolat Capital
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Dolat Capital Report
Larsen & Toubro Ltd.'s consolidated revenues grew 12% YoY (in line with DART/ Cons. est.) as adjusted core sales/non-core sales were up 12%/13% due to increased project execution momentum with easing of regional lockdowns.
Ebitda increased by 20% YoY (in line with DART/Cons. est.) with margin expansion of 74 bps YoY, as rising input cost was offset by better job mix and higher recovery of overheads.
Infra segment margin at 8.3% (up 190 bps YoY) was 110 bps ahead of estimate, which reflects L&T’s apt capabilities to tackle commodity headwinds via sustainable cost efficiencies.
It registered order inflows of Rs 301 billion/Rs 120 billion (+74%/+12% YoY) from core/ non-core business segments.
Tender pipeline for H2 FY22E remains strong at Rs 6.83 trillion (vs Rs 9.06 trillion at the start of FY22, up 11% YoY) largely led by Infra (78%) & Hydrocarbon (18%).
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