Larsen & Toubro - First Cut
Rajesh Desai
Dear Sir/Madam,
L&T announced its Q2 FY14 results on 18 Oct 2013
Q2 FY14 Result Analysis
The company’s Total Income increased by 10% YOY to INR14510 crore YOY (which was above Estimates) while its EBITDA remained almost flat at INR1402 crore. EBITDA Margin of the company decreased from 10.6% to 9.7% YOY (in line with the expectation). PBT increased by 7% to INR1392 crore YOY. Adjusted PAT increased by 12% to INR978crore. PAT incl EO decreased by 14% YOY. Result of the company was above expectation. Order intake came at INR26533 crore up by 27% YOY in Q2 FY14. Total Order Book came at INR176036 crore which grew by 11% YOY. International Order Book constituted 15% of total order book
H2 FY14 (Half- Yearly)
The company’s Total Income increased by 8% YOY to INR27065 crore YOY while it’s EBITDA decreased by 1% to INR2473 crore. EBITDA margin decreased from 9.9% to 9.1%. Adjusted PAT decreased by 2% to INR1734 crore. PAT incl EO decreased by 13%.
At the CMP of INR872, the stock discounts its FY14E EPS of INR52.1 by 16.73x. We expect the financials to consolidate in FY14E and profitability to improve substantially only in FY15E. We maintain Accumulate on the stock at the current level.
DESCRIPTION |
Sep-13 |
Jun-13 |
Sep-12 |
QOQ |
YOY |
H2 FY14 |
H2 FY13 |
% change |
|
Net Sales |
14510 |
12555 |
13195 |
16% |
10% |
27065 |
25151 |
8% |
|
Total Expenditure |
13108 |
11484 |
11792 |
|
|
24591 |
22662 |
|
|
PBIDT (Excl OI) |
1402 |
1071 |
1404 |
31% |
0% |
2473 |
2488 |
-1% |
|
EBITDA (%) |
9.7% |
8.5% |
10.6% |
|
|
9.1% |
9.9% |
|
|
Other Income |
449 |
473 |
331 |
|
|
922 |
939 |
|
|
Operating Profit |
1851 |
1544 |
1735 |
|
|
3395 |
3428 |
|
|
Interest |
243 |
245 |
235 |
|
|
488 |
463 |
|
|
PBDT |
1608 |
1299 |
1500 |
|
|
2907 |
2964 |
|
|
Depreciation |
216 |
210 |
204 |
|
|
427 |
396 |
|
|
PBT |
1392 |
1089 |
1296 |
28% |
7% |
2481 |
2568 |
-3% |
|
Tax |
414 |
332 |
426 |
|
|
747 |
796 |
|
|
Profit After Tax |
978 |
756 |
870 |
29% |
12% |
1734 |
1772 |
-2% |
|
PAT (%) |
6.7% |
6.0% |
6.6% |
|
|
6.4% |
7.0% |
|
|
Exceptional |
0 |
0 |
214 |
|
|
0 |
176 |
|
|
EO |
0 |
0 |
53 |
|
|
0 |
53 |
|
|
PAT Inc EO |
978 |
756 |
1137 |
29% |
-14% |
1734 |
2001 |
-13% |
|
|
|
|
|
|
|
|
|
|
|
Equity Capital |
185.1 |
184.9 |
183.8 |
|
|
185.1 |
183.8 |
|
|
Face Value (In Rs) |
2.0 |
2.0 |
2.0 |
|
|
2.0 |
2.0 |
|
|
No. of shares |
92.5 |
92.4 |
91.9 |
|
|
92.5 |
91.9 |
|
|
|
|
|
|
|
|
|
|
|
|
EPS |
10.6 |
8.2 |
9.47 |
29% |
12% |
18.7 |
19.3 |
-3% |
Regards,
Team Microsec Research
Microsec Capital Limited
Tel: 91 33 30512100
Fax: 91 33 30512020
CA. Rajesh Desai