Motilal Oswal: Larsen & Toubro - Navigating Weak Macros By Focusing On Balance Sheet
A Larsen & Toubro Ltd. employee grinds metal plates in the company’s ship building yard in Hajira, India (Photographer: Prashanth Vishwanathan/Bloomberg News)  

Motilal Oswal: Larsen & Toubro - Navigating Weak Macros By Focusing On Balance Sheet

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.

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.

Click on the attachment to read the full report:

Motilal Oswal Larsen & Toubro Q2FY21 Result Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.