- 28 Oct 2021
- ICICIdirect Research
Larsen & Toubro reports decent Q2 operational performance amid unlockLT - 2215 Change: -9.95 (-0.45 %)
News: L&T’s adjusted standalone revenues (Ex- E&A business) for the quarter grew by 8% YoY to Rs.17061 crore (vs. our estimate of Rs.18893.2 crore) on a low base. On a consolidated basis, adj. revenues on like to like basis grew by 12% to Rs.34772.8 crore on YoY basis. Standalone EBITDA margins improved by 40bps to 8.2% (Vs. our estimates of 78.3%) on YoY basis owing to job mix and cost control initiatives. On a consolidated basis, EBITDA margins came in at 11.5% (Vs. 10.7% in Q2FY21). Consequently, for Q2FY22, standalone Adj. PAT (Ex-E&A) came in at Rs.1758.2 crore, up 67.2% on YoY.
Views:L&T posted decent performance on operational front amid unlock while infrastructure segment saw some green shoots with improvement on margin, productivity and job mix. Order Backlog remains strong at Rs.330541 crore. Also, stable working capital to sales, reduced debt, better cash flow situation has provided further liquidity comfort on balance sheet front in these challenging times.