L&T Q4 Review - Strong Operating Performance, Balance Sheet Strengthens: Motilal Oswal
A worker smoothes the edges of metal casing at the company factory of Larsen and Toubro Ltd. Heavy Engineering Division in Mumbai, India (Photographer Santosh Verma/Bloomberg).

L&T Q4 Review - Strong Operating Performance, Balance Sheet Strengthens: Motilal Oswal

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Motilal Oswal Report

Larsen and Toubro Ltd.’s consolidated adjusted profit after tax grew 12% YoY to Rs 34.2 billion, 9% above our estimate.

Profit after tax in the core engineering and construction segment grew 19% YoY to Rs 28.7 billion (12% ahead of our estimate).

Margin surprise drove earnings beat.

Balance sheet improvement was a huge positive as net debt/earning (including minorities and adjusted for current investments) improved to one time from 1.5 times in FY20.

This was driven by:

  1. completion of the sale of the electrical and automation business,

  2. working capital cycle improvement to 22.3% of sales from 23.7%.

Click on the attachment to read the full report:

Motilal Oswal L&T Q4FY21 Result Update.pdf

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