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Larsen & Toubro Ltd. | Q3FY13 Result Update




IndiaNivesh Securities Pvt Ltd


24 Jan 2013





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Larsen & Toubro Ltd. | Q3FY13 Result Update Other Income lifts PAT, numbers disappoint us Larsen & Toubro (L&T) reported a disappointing set of Q3FY13 numbers (both, on top-line and bottom-line front). The company reported a top-line of Rs 154.2 bn, below our expectations of Rs 159.4 bn. The reported top-line numbers were up 10.2% on a year-over-year basis and 16.9% sequentially. The company reported an EBITDA of Rs 14.7 bn, way below our expectation of Rs 16.7 bn. Reported EBITDA margins of L&T were almost the same like the previous year at 9.6%. At PAT level, the company reported adj. PAT of Rs 11.2 bn against our expectation of Rs 11.3 bn. Adj. PAT margins of the company stood at 7.3% (vs. 6.3% in Q2FY13 and 7.1% in Q3FY12). Outlook & Valuation: L&T at CMP of Rs 1,586, is trading at FY13E and FY14E based P/E multiple of 18.5x and 16.8x, respectively. In the last 12 months, the company delivered 19.0% returns on expectations of turn-around in fundamentals of the company. However, given that apart from OI numbers, there has been no major shift in the company fundamentals, we expect all positives have been captured in the current stock price, thereby leaving minimal scope for further price appreciation from here-on.

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