- 31 Jan 2023
- ICICIdirect Research
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L&TS ADJUSTED STANDALONE REVENUES FOR QUARTER UP 8.3% YOY TO RS 27785.4 CRORE
LT - 3551 Change: -37.60 (-1.05 %)News: L&T's adjusted standalone revenues (ex- E&A) for the quarter grew 8.3% YoY to Rs 27785.4 crore (vs. our estimate of Rs 29226.7 crore). On a standalone basis, Infrastructure segment revenue grew 13.8% to Rs 20294 crore YoY, driven by a smooth execution of a large order book. Standalone EBITDA was up 10.3% YoY to Rs 2316.9 crore with margins flat at 8.3% YoY (in Q2FY23, it was at 7.4%). On a consolidated basis, EBITDA margins came in at 10.9%. Consequently, standalone adjusted PAT (ex-E&A) came in at Rs 1825.4 crore, flat YoY (vs. our estimates of Rs 2032.2 crore). Other income came in at Rs 833 crore, down 9.8% YoY while interest expense increased 22.5% to Rs 508 crore. Consolidated adjusted PAT for Q3FY23 came in at Rs 2553 crore (vs. Rs 2054.7 crore in Q3FY22). For Q3FY23, L&T registered strong order inflows at group level worth Rs 60710 crore, which grew 21% YoY. orders were received across multiple segments like oil & gas, public spaces, hydel & tunnels, irrigation systems, ferrous metals and power transmission & distribution. International orders at 15,294 crore during the quarter comprised 25% of total order inflow. Overall infrastructure segment secured orders worth Rs 32,530 crore (~53.5% of total inflows)
Views: As the government is likely to continue the emphasis on infrastructure spending while providing subtle support to consumption and addressing the need for investing in new age technologies to combat the climate change risks, 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. Focus on monetisation of non-core assets, improving RoEs and reducing debt make it an attractive portfolio bet to ride the infrastructure and manufacturing cycle revival theme
Impact: Positive