INSUBCONTINENT EXCLUSIVE:
December quarter and maintained its order inflow growth for FY20 at 10-12 per cent.
Analysts were largely expecting the engineering and
construction major to cut inflow guidance amid a tough macroeconomic environment.
The inflow guidance implies revenue of Rs 50,000-54,000
crore in the March quarter, which would be 20-30 per cent higher compared with the same quarter last year.
For the quarter gone by, the
company won new orders worth Rs 41,579 crore, with international orders accounting for 43 per cent for the total orders at Rs 17,901
crore.
At 9.30 am, the scrip was trading 3 per cent higher at Rs 1,333 on BSE.
The company on Wednesday reported a 15.2 per cent
year-on-year rise in consolidated profit at Rs 2,352 crore for the December quarter
Order inflows remained robust while stable working capital levels led to strong cash generation, it said, adding that the improvement in
core Ebitda margin was a key positive in the third quarter.
Revenue for the company rose 6 per cent to Rs 36,243 crore for the quarter
trades at 14.7 times FY21 EPS, which we think is justified given its diversified business profile; its FY20-21F earnings include a
were surprising, but the execution was weak.
Motilal Oswal said the bleak operating performance is largely attributable to the weakness in
of working capital is not on account of the receivables but on account of payables, as L-T has supported its vendors in the time of
We believe that as the situation improves, L-T would be able to improve its working capital cycle again
At current market price, the stock trades attractively at FY21/22E P/E of 16.8 times/14.1 times (adjusted for valuation of non-core