Motilal Oswal: Larsen & Toubro - Navigating Weak Macros By Focusing On Balance Sheet
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Motilal Oswal Report
Larsen and Toubro Ltd.’s consolidated adjusted profit after tax declined 52% YoY to Rs 11.1 billion and was 16% below our expectation.
This was largely on account of weak engineering and construction revenues (down 17% YoY) and higher depreciation and interest expense.
Weak order inflows (down 42% YoY) and high working capital as percentage of sales at 26.7% reflects weak macro environment for broader capex cycle.
The company declared special dividend of Rs 18 per share, thanks to proceeds of the electrical and automation sale completion.
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