L&T Q2 Results Review - Steady Performance Aided By Healthy Execution: Prabhudas Lilladher

Prabhudas Lilladher Report

Larsen and Toubro Ltd. reported healthy quarterly performance with consolidated revenue growth of ~23% YoY to ~Rs 4276 billion, aided by accelerated execution in infrastructure segment, while Ebitda margin came in flat YoY at 11.5% with impact witnessed in infrastructure segment (6.6% in Q2 FY23 versus 7.8% in Q2 FY22) and adjusted profit after tax growth of 27.4%.

Order inflows came in at Rs 519 billion up 23.2% YoY, driven by pick up in domestic order finalisation during the quarter. Order book stands healthy at Rs 3.7 trillion (2.2 times trailing twelve months revenue), comprising exports order book of 28%.

Tender prospects for H2 FY23 stand at Rs 6.3 trillion, including infrastructure at Rs 4.54 trillion and hydrocarbon at Rs 1.13 trillion.

Net working capital to sales improved at 20.2% as on Q2 FY23 versus 22% in Q2 FY22 and 20.9% in Q1 FY23, owing to better collections.

L&T maintained its revenue and order inflows growth guidance of 12-15% and net working capital to sales of ~20%. while it took a cautious stance on Ebitda margin guidance of 9.5% for FY23.

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