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- 31 Jan 2022
- ICICIdirect Research
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L&T REPORTS PICK-UP IN Q3FY22 PERFORMANCE
LT - 3238 Change: -26.00 (-0.80 %)News: Larsen & Toubro (L&T) reported a pick-up in Q3FY22 performance in terms of execution rate given the infrastructure segment. L&T’s adjusted standalone revenues (Ex- E&A business) for the quarter grew by 9.8% YoY to Rs.21552 crore. On standalone basis, infrastructure segment revenue grew by 18% to Rs.17837.8 crore on YoY basis. Standalone EBITDA declined by 7.7% YoY to Rs.1720.6 crore with margins down 152 bps to 8% on YoY basis. Standalone adjusted PAT at Rs.1671crore (declined 2% YoY). Order inflows came in at Rs.50359 crore, de-grew by 31% YoY. L&T registered decent order inflows at group level worth Rs.50359 crore, which de-grew by 31% YoY but at the same time base was very high as L&T had won a big order in Q3Y21 from bullet train segment. International orders for Q3FY22 came in at Rs.20521 crore contributing 41% to order inflows. Overall infrastructure segment secured orders worth Rs.25330 crore (~50% of total inflows). L&T’s order backlog as on Q3FY22 stood at Rs.340365 crore with international orders contributing 24%.
Views: L&T remains the best way to play the capex recovery theme in India given its strong execution capability, presence across diverse sectors and geographies which makes its less vulnerable during down cycles. Focus on monetisation of non-core assets, enhancing ROE’s and reducing debt makes it an attractive portfolio bet to ride the infrastructure and manufacturing cycle revival theme.
Impact: Positive.