NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Centrum Broking Report
Larsen & Toubro Ltd.'s reported marginally weak set of results for Q3 FY24 as revenue came in 5% ahead of our expectations while margins were 90bps lower and profit after tax 10% below estimate. Order inflow and order backlog remains strong with strong contribution from international segment.
However, margin recovery in core engineering, procurement and construction business remained weak. Larsen & Toubro has upped its order inflow and revenue growth guidance whereas margins guidance in P&M segment has been marginally reduced.
Overall order inflow trend remained strong with 32% YoY growth in order inflow in P&M segment driven by large orders in infrastructure and hydrocarbon segment. 67% of incremental new orders were received from international segment.
International orders now constitute 39% of total orderbook and Saudi represents almost 1/3rd of total orderbook of the company thereby increasing geographic concentration risk.
We have maintained our estimates and 'Add' rating on the stock and believe that execution is expected to remain strong with favourable tailwinds from domestic government capex and strong outlook on middle east economy.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
