Larsen & Toubro Limited - Net Sales up by 24%YoY; Net Profit up 18% YoY

Larsen & Toubro Limited

NSE Symbol        LT

Larsen & Toubro has turned out very Good Performance (On astand Alone Basis) in Q3 FY 2012 ending Dec,2011.

Net Sales (On stand Alone Basis)stands at Rs.13998.58 cr in Q3 FY 12 – compared to Rs.11245.24 cr in Q2 FY 12, the previous qtr (Up by  24.48%) and  Rs.11321.67 Cr in Q3 FY 11 (Up by 23.64%).

Raw Materials consumption stands at Rs.3773.22 cr – down by  -47.7% from Q2 FY 12 in Q2 FY 12 and down by  -52.4% in Q3 FY 11.

Other Expenditure  stands at Rs.  7744.43 Cr in Q3 FY 12 – up by 438.1% from Q2 FY 12; and up by 525.72% from Q3 FY 11.

Total Expenditure stands at Rs.12835.81 cr in Q3 FY 12 – up by            25.32% from Q2 FY 12; and up by 24.58% from Q3 FY 11.

Profit from Operations stands at Rs.1162.77 Cr  in Q3 FY 12 – up by  15.91% from  Q2 FY 12; and up by 4.77% from Q3 FY11.

Other Income stands at Rs.448.71 cr in Q3 FY 12  – up by  23.55% from Q3 FY 11; and up by  81.53% from Q3 FY 11.

Profit  before tax stands at Rs.1420.77 cr in Q3 FY 12 – up by  21.5% from Q2 FY 12; and up by  16.78% from Q3 FY 11.

Tax expense stands at Rs.429.22 cr in Q3 FY 12 – up by  15.72% from Q2 FY 12; and  up by 14.14% from Q3 FY 12.

Net Profit  stands at Rs.991.55 cr in Q3 FY 12 – up by  24.19% from Q2 FY 12 and up by  17.97% from Q3 FY11.There was an Exceptional item of Rs(-)35.30 cr in Q3 FY 11.There is no such item in Q3 FY 12.

Basic EPS, on a Face Value of Rs.2 stands at Rs.16.21 in Q3 FY 12; Rs.13.07 in Q2 FY 12; Rs.12.24 in Q1 FY 12; and Rs.13.84 in Q3 FY 11.

Judging by the optimism of the company, the annual EPS for FY 12 may be around Rs.57.73. As the economy improves and as Project execution becomes Faster – L&T’s Net sales and Net Profits will grow further in coming quarters.

Current Market Price is Rs.1273, while the  52 week high price  is Rs.2001.70 and th 52 week low price  is Rs.969.15.

The PE Ratio comes to 22

RESULTS (S/A)TABLE(Lakhs)

L&T	31-Dec-11	30-Sep-11	%DIF1	30-Jun-11	31-Dec-10	%DIF2
Net Sales	1399858	1124524	24.48	948261	1132167	23.64
Other Oprtng Income	-	-		-	9141
SIT/WIP	-23499	-12984	80.98	-29368	-15837	48.38
Raw Materials	377322	721405	-47.7	448603	792739	-52.4
Traded Goods	48601	44353	9.58	48845	49133	-1.08
Employees Cost	88680	110409	-19.68	76600	67715	30.96
Depreciation	18034	17090	5.52	16785	12809	40.79
Other Expenditure	774443	143936	438.1	290934	123769	525.72
Total Expenditure	1283581	1024209	25.32	852399	1030328	24.58
Profit from Operations	116277	100315	15.91	95862	110980	4.77
Other Income	44871	36317	23.55	29618	24718	81.53
Interest	19071	19701	-3.2	16126	17571	8.54
Exceptional Items	-	-		-	-3530
Profit  before tax	142077	116931	21.5	109354	121657	16.78
Tax expense	42922	37092	15.72	34739	37604	14.14
Net Profit	99155	79839	24.19	74615	84053	17.97
Face Value (In Rs	2	2	0	2	2	0
Paid Up Equity	-	12223		12200	-
Basic EPS	16.21	13.07	24.02	12.24	13.84	17.12
Diluted EPS	16.11	12.94	24.5	12.11	13.66	17.94
Public holding (%)	0	95.76	-100	95.99	0

OTHER DETAILS

Larsen & Toubro recorded Gross Revenue of  Rs.14155 crore for the quarter ended December 31, 2011, registering a growth of 23 % y-o-y.

Order inflow for the quarter at Rs.17129 crore grew by 28% y-o-y, taking the Company’s Order Book to Rs.145768 crore as on December 31, 2011. With its proven track record, the Company was able to secure fresh orders from Infrastructure, Building & Factories, Power Transmission & Distribution and Minerals & Metals sectors despite a subdued investment sentiment prevailing during the quarter.

Recurring Profit after Tax (PAT) for the quarter from normal operations stood at  Rs.992 crore recording an increase of 22 % over the corresponding quarter of the previous year.

Engineering & Construction (E&C) Segment

E&C achieved net Segment Revenue of  Rs.12424 crore for the quarter ended December 31, 2011 registering a y-o-y growth of 26%. Execution of various ongoing projects is on schedule.

During the quarter, the Segment secured orders totaling to Rs.15283 crore with International orders constituting 10 % of the total order inflow.

The Order Book of the Segment stood at a healthy Rs.143341 crore as at December 31, 2011.

With focused execution and efficient project management, the Segment recorded Operating Margin at 11.5% during the quarter ended December 31, 2011 vis-à-vis 11.6% for the corresponding quarter of the previous year.

Electrical & Electronics (E&E) Segment

E&E net Segment Revenue stood at Rs.776 crore for the quarter ended December 31, 2011 recording only a marginal y-o-y growth as a result of low industrial off-take, liquidity crunch in the domestic market and sluggish international demand.

During the quarter ended December 31, 2011, the Segment produced an Operating Margin of 10.9% in line with the margin levels seen in the preceding quarters during the year. High input costs not fully passed on to the customers, due to stiff competition in the market place, kept the margins range bound.

Machinery & Industrial Products (MIP) Segment

MIP recorded net Segment Revenue of Rs.703 crore during the quarter ended December 31, 2011. The export revenues doubled during the quarter.

The Segment earned an Operating Margin of 20.3% during the quarter ended December 31, 2011 mainly contributed by the Construction & Mining Machinery and Valves Business.

Outlook

The quarter witnessed project deferments, aggressive competition, slow reform process and sharp rupee depreciation. The recent increase in IIP numbers and easing of inflationary pressures, however, reflect some positive developments.

The Company is leveraging on its leadership position to fully exploit the available domestic opportunities. Emerging prospects in the Hydrocarbon and Infrastructure sectors in preferred overseas markets mainly in the Middle East and South East Asian countries are also being targeted. The Company is optimistic about its success in these markets in the near to medium term.

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