 "Larsen & Toubro dips 5% as investors book profit post Q2 results")
Shares of Larsen & Toubro (L&T) slipped 5 per cent at Rs 936 on the BSE on Thursday as investors booked profit after the announcement of the company's September quarter results of FY21. Further, the company's board approved special dividend of Rs 18 per equity share i.e. 900 per cent on face value of Rs 2 each, for the financial year 2020-21. The company has fixed November 5, 2020 as the record date for the purpose of payment of dividend.
The stock had gained for eight straight trading days, rallying 11 per cent, as compared to 0.48 per cent rise in the S&P BSE Sensex till Wednesday.
The construction & engineering major reported a reasonable July-September quarter (Q2FY21) operational performance amid a subdued business environment.
L&T’s standalone revenues de-grew 15.8 per cent year-on-year (YoY) at Rs 15,792 crore. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins declined marginally by 50 bps to 7.8 per cent YoY. The adjusted profit after tax (excluding impairments and E&A proceeds) declined 40.8 per cent YoY to Rs 1,052 crore during the quarter.
“L&T reported a reasonable performance on the operational and order inflow front while the infrastructure segment saw some green shoots of recovery amid productivity challenges. Also, cash proceeds from sale of E&A business provided much needed liquidity comfort on the balance sheet front in these challenging times,” ICICI Securities said in a note.
However, working capital levels continue to be a key monitorable in the long term. Additionally, High-Speed Rail (HSR) mega project is by far the largest EPC order that L&T has won in its history significantly improving its order intake for FY21E despite the challenging economic environment. This will further strengthen its order book and enhance its revenue visibility for coming years. L&T plans to deploy state of art construction methods and extensive digital technologies for this project, it said.
At 09:35 am; L&T was trading 4 per cent lower at Rs 944 on the BSE, as compared to 0.66 per cent decline in the S&P BSE Sensex. A combined 2.9 million equity shares had changed hands on the counter on the NSE and BSE.
The stock had gained for eight straight trading days, rallying 11 per cent, as compared to 0.48 per cent rise in the S&P BSE Sensex till Wednesday.
The construction & engineering major reported a reasonable July-September quarter (Q2FY21) operational performance amid a subdued business environment.
L&T’s standalone revenues de-grew 15.8 per cent year-on-year (YoY) at Rs 15,792 crore. Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins declined marginally by 50 bps to 7.8 per cent YoY. The adjusted profit after tax (excluding impairments and E&A proceeds) declined 40.8 per cent YoY to Rs 1,052 crore during the quarter.
“L&T reported a reasonable performance on the operational and order inflow front while the infrastructure segment saw some green shoots of recovery amid productivity challenges. Also, cash proceeds from sale of E&A business provided much needed liquidity comfort on the balance sheet front in these challenging times,” ICICI Securities said in a note.
However, working capital levels continue to be a key monitorable in the long term. Additionally, High-Speed Rail (HSR) mega project is by far the largest EPC order that L&T has won in its history significantly improving its order intake for FY21E despite the challenging economic environment. This will further strengthen its order book and enhance its revenue visibility for coming years. L&T plans to deploy state of art construction methods and extensive digital technologies for this project, it said.
At 09:35 am; L&T was trading 4 per cent lower at Rs 944 on the BSE, as compared to 0.66 per cent decline in the S&P BSE Sensex. A combined 2.9 million equity shares had changed hands on the counter on the NSE and BSE.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%