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

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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.

Click on the attachment to read the full report:

Motilal Oswal Larsen & Toubro Q2FY21 Result Update.pdf

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