Larsen & Toubro tumbles by almost 5 per cent after posting Q2FY16 results

Larsen & Toubro (L&T) declared its Q2 result today. The company's revenue increased by 10.56 per cent to Rs 23393 crore in Q2FY16 as compared to same period in previous fiscal year. Its total expenditure increased by 10.5 per cent to reach Rs 20802 crore in Q2FY16 on yearly basis. L&T's total expenditure increased predominantly due to a 140.58 per cent increment in raw material prices during the quarter.

L&T's EBITDA increased by 11.03 per cent to Rs 2592 crore in Q2FY16 as compared to the same period in previous financial year. The company's EBITDA margin expanded by 5 basis points to 11.08 per cent in Q2FY16 on yearly basis. Its EBIT increased by 6.3 per cent to Rs 1898 crore in Q2FY16 on yearly basis though depreciation expense rose by 26.43 to Rs 694 crore during the quarter. L&T's interest income was up 19.89 per cent to Rs 8.28 crore in Q2FY16 on yearly basis and exceptional gain of Rs 310 crore from divestment of part of stake in subsidiary company during Q2FY16. The company's net profit too rose by 15.57 per cent to Rs 996 crore in Q2FY16 as compared to same period in previous financial year. Its net profit margin expanded by 19 basis points to 4.26 per cent in Q2FY16 on yearly basis.

Considering segment wise revenue L&T earned 45.55 per cent from Infrastructure segment, a 5.75 per cent from Hydrocarbon segment, a 9.47 per cent from IT & Technologies,a 7.62 per cent from Financial services segment, 5.54 per cent from developmental projects segment, 5.46 per cent from Electrical and Automation segment,5.75 per cent from Power segment,2.65 per cent from Heavy Engineering segment,2.73 per cent from Metallurgical and Material handling segment and remaining 7.22 per cent from Others segment during September 2015 quarter.

L&T secured fresh orders worth Rs 28620 crore at group level during Q2FY16. The international order inflow stood at Rs 10973 crore contributing 38 per cent of the total order inflow. The majority of the order secured by the company by infrastructure segment. On cumulative basis, its order book stood at Rs 54996 crore in H1FY16.Total cosolidated order book of the L&T stood at Rs 244097 crore as of Q2FY16 witnessed a growth of 14 per cent on yearly basis. International order constitute around 28 per cent of the total order book.

L&T's shareholding pattern indicates that FII holdings expanded by 200 basis points to 18.18 per cent and DII holdings contracted by 240 basis points to 37.1 per cent during September 2015 quarter. The stock declined by 4.86 per cent on bourses & touched 52 week low at Rs 1400 and closed at the end of the day at Rs 1411.15 on October 30,2015.

L&T is India based technology, engineering, construction and manufacturing company. The company operates in 5 segments includes Hydrocarbon, IT & Technology Services, Financial Services, Developmental Projects and Others comprising Realty, Shipbuilding, Ready Mix Concrete, Mining and Aviation. The Company’s manufacturing footprint extends across eight countries in addition to India. L&T has several international offices and a supply chain that extends around the globe.