Larsen & Toubro extends gains on strong Q4 operational performance

Shares of Larsen & Toubro (L&T) were trading 3% higher at Rs 1,421 per share on the market in early morning trade, extending their 5% gain in the past one week, after the company reported better than expected operational performance in March 2018 (Q4FY18). The stock was 4% away from its all-time high of Rs 1,470 touched on February 1, 2018 on the BSE in intra-day trade.
Engineering conglomerate L&T reported a 5% year-on-year increase in its consolidated profit after tax (PAT) at Rs 31.70 billion in Q4FY18 on improved operational performance. The firm’s revenues from operations were Rs 406.80 billion, 11% higher than Rs 366.20 billion reported in the corresponding quarter a year earlier.

Earnings before interest, taxation, depreciation and amortisation (Ebitda —an indication of operating profitability) came in at Rs 53.90 billion, or 23% higher than Rs 43.80 billion reported in the same quarter a year back.

“L&T’s operational performance was marginally above estimate led by recovery in infrastructure margins and benefit of Bangaluru asset sales. Margins (Ex services) improved 70bps yoy during the quarter led by strong execution, benefit of asset sales and cost rationalization initiatives taken by the company. Order inflow was quite strong at Rs 496 billion in Q4 and Rs 1,529 billion in FY18 (higher than management guidance),” IIFL Wealth Management said in result update.