Value Investing News

Niggling issues w.r.t order execution prevalent in 9MFY10 was addressed in Q4FY10. Consequently, Q4FY10 performance meets EMKAY’s expectation, but is ahead of consensus estimates. Larsen & Toubro (L&T) reported (1) revenue growth at +28.1% yoy to Rs135.8 bn (2) 29.2% yoy growth in Ebidta to Rs20.5 bn and (3) 17.1% yoy growth in Adjusted Net Profit to Rs13.4 bn – meets expectation. The E&C Segment was the lead runner with 28.3% yoy growth in revenue to Rs121.1 bn –downplaying fears of delays in revenue booking. Considering robust order inflows in Q4FY10 (Rs238.4 bn, up 90% yoy), L&T meets FY10 order inflow
(Rs695 bn, up 35%) and order backlog (Rs1002.4 bn, up 43%)....

To read the full analysis you can visit the below link:
http://www.dsij.in/productattachment/BrokerRecommendation/L&T%201.pdf

Source: Dalal Street Investment Journal
www.dsij.in