InvestorQ : How do you see L&T stock after its latest quarterly results for Mar-20?
NISHA Nayak made post

How do you see L&T stock after its latest quarterly results for Mar-20?

Answer
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4 months ago


Larsen & Toubro (L&T) reported 6.5% fall in net profit at Rs.3197 crore in the Mar-20 quarter. Weak revenue growth and higher finance and administrative costs ensured that despite the benefit of a lower tax rate, L&T had to take a hit on the bottom line. Revenues for the quarter was up by 2.2% at Rs.44,245 crore. The muted growth was largely because the execution pace was impacted by tightness in client liquidity. The good news was that the order book surged in the fourth quarter by 5% with order inflows of Rs.57,785 crore. Many of the state government infrastructure orders, which had ceased in between, also started to come back. International orders constituted 25% of the order book of L&T. Operating margins for the quarter were lower by 62 basis points at 11.57%. Among the various business segments of L&T, the oil & gas business performed the strongest while other segments recorded weak to negative growth. Oil & gas orders account for 11% of the total revenues of L&T. Infrastructure segment, which contributes 58% to revenues, actually contracted by 5% due to COVID related challenges.