Larsen and Toubro Result Analysis - Q3 FY 2019

 



Larsen and Toubro announced its result for Q3FY19 on January 25, 2019. The company showed robust growth in all segments.

Standalone Result

Revenue of the company grew by 26% YoY. It was Rs. 17717.98 crores for Q3FY18 which grew to Rs. 22342.98 crores in Q3FY19.

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Net Profit (PAT) for Q3FY19 was at Rs. 1.634.78 crores which was a jump of about 34% YoY. For the Q3FY18 the PAT came in at 1,221.95 crores.

Standalone Result Larsen and Toubro Standalone Result - Q3 FY19

Segment wise Revenue and Profit Before Tax (PBT)

All the segments except Power saw good growth in terms of revenue and PBT.

Larsen Revenue PBT Segment tandalone - Q3 FY19

Consolidated Result

Revenue of the company on consolidated basis grew YoY by 24%. It was Rs. 28,747.45 crores for Q3FY18 which grew to Rs. 35,708.87 crores in Q3FY19.

Net Profit (PAT) for Q3FY19 was at Rs. 2,418.75 crores which was a jump of about 35% YoY. For the Q3FY18 the PAT came in at 1,788.94 crores.

Larsen and Toubro Consolidated Result - Q3 FY19

Segment wise Revenue and Profit Before Tax (PBT) on consolidated basis

On the consolidated basis too, all the segments except Power saw good growth in terms of revenue and PBT. Significant growth was seen in Infrastructure, Hydrocarbon and Financial Services segment on YoY basis in terms of revenue. In terms of PBT, little dip was seen in the Infrastructure, Power and Developmental Projects segments.

Larsen Revenue PBT Segment Consolidated - Q3 FY19

Overall, the performance of the company in Q3FY19 was quite good. The company was able to maintain the Operation Profit Margin (OPM) at about the satisfactory level of 10%. If the OPM falls below 10%, then the company may start to worry.

PE ratio and PEG ratio stand at 28.94 and -2.96 respectively.

Excepts from Larsen and Toubro Press Release

On Order Book
The Company secured orders worth 42,233 crore at the group level during the quarter ended December 31, 2018. The current quarter witnessed delays in order awards due to deferment of select prospects in project businesses mainly in Transportation Infrastructure, Heavy Civil Infrastructure and Power business. International orders at 11,454 crore constituted 27% of the total order inflow.
On a cumulative basis, the order inflow for the nine month ended December 31, 2018 stood at 120,296 crore, growing at 16% over the corresponding period of the previous year. Infrastructure, Hydrocarbon, Heavy Engineering businesses largely contributed to the growth in order inflows.
On reclassification and regroupig of numbers
Infrastructure segment includes Metallurgical and Material Handling (MMH) business, which was reported under "Others" Segment last year. Accordingly, previous year figures are regrouped wherever necessary.
Challanges being faced by the Power sector
The segment continued to witness muted prospects due to limited opportunities in the face of over-capacity in the sector coupled with aggressive competition. With the Government's thrust on controlling industrial pollutant emissions, the tendering activity in Flue Gas Desulphurisation awards of which commenced in this fiscal is expected to continue in the ensuing quarter and in FY20.

 

 

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