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L&T shares decline over 3% amid profit booking post March quarter results

Shares of engineering main Larsen and Toubro (L&T) declined 3.3 per cent to Rs 1,368.5 on the BSE in Monday’s intra-day offers on the again of profit booking. India’s largest engineering and development agency on Friday reported a consolidated internet profit of Rs 3,293 crore for March quarter of FY21 (Q4FY21), up 3 per cent year-on-year (YoY), on greater revenues and surge in different revenue.

The reported internet profit was greater than Bloomberg consensus estimate of Rs 3,042 crore, regardless of the 116 per cent YoY soar in tax bills to Rs 2,087 crore. However, internet gross sales at Rs 48,088 crore and up 8.7 per cent YoY, have been barely decrease than expectations of Rs 48,602 crore. Sequentially, it jumped 35 per cent.

“The revenue gro­wth on a YoY basis was evid­encing ret­urn to pre Covid levels of activity. The international revenues at Rs 15,851 crore constituted 33 per cent of the total revenue,” L&T stated in its launch.

The order influx or new orders obtained throughout This autumn stood at Rs 50,651 crore, down 12 per cent YoY with deferment of awards. Sectors similar to factories, hydel and tunnel, metros, particular bridges, nuclear energy, rural water, renewable power, hydro­carbon offshore and minerals and steel sector contributed considerably to the orders throughout the quarter.

International orders at Rs 18,439 crore is at 36 per cent of whole order influx, with receipt of the most important Solar PV plant order and transmission line orders, stated the company.

“L&T’s FY21 performance confirms the global/local trend of slower site traction for long-cycle projects and it’s heartening to see stable balance sheet. Core(inflow/sales) for FY21 dropped by 11 per cent each. However, strong Rs 9.6 trillion pipeline/bottom cycle operating profit margins (OPMs) and rising private sector prospects could offer higher earnings/return delta over two-three years along with divestment upsides,” wrote analysts at Edelweiss Securities in its post-result report. The brokerage has ‘Buy’ name on the stock with a goal value of Rs 1,880.

Going-forward, L&T expects order prospects to the tune of Rs 9.06 lakh core for FY22E, up 8.7 per cent YoY. Out of this, Rs 6.56 lakh crore is in infrastructure section and relaxation in different segments. Geography clever, Rs 6.97 lakh crore order prospects in home markets throughout city infra, transportation, water, energy T&D, renewables and Rs 2.1 lakh crore in International market throughout hydrocarbon, energy T&D in Middle East, Africa, Asean, Indonesia, Philippines, and many others

Those at ICICI Direct, too, have ‘Buy’ name on the stock (goal value: Rs 1,700) and expects L&T to ship standalone income CAGR of 12 per cent, Ebitda CAGR of 11.8 per cent and PAT CAGR of 15.1 per cent in FY21-23E.

“As of now, the company has guided for low to mid teen growth in order inflows and revenue for FY22E while there could be near term challenges amid second wave of pandemic. Margins are expected to remain stable at current levels,” the brokerage famous.

At 9:50 AM, the scrip trimmed losses partially and was down 1.6 per cent at Rs 1,392 per share as towards a 0.7 per cent rise within the benchmark S&P BSE Sensex.

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