Larsen & Toubro gains 4% as Q3 results beat Street estimates
Posted on 28th January 2019 |
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Shares of Larsen & Toubro (L&T) were up 4 per cent to Rs 1,337 apiece on BSE in the early morning trade in an otherwise weak market after the company reported 37 per cent year-on-year (YoY) rise in consolidated net profit at Rs 2,042 crore in December quarter (Q3FY19). The healthy performance during the quarter was on back of improved operating performance and a higher other income.
At 09:56 am, L&T was trading 2.5 per cent higher at Rs 1,318 on BSE, as compared to 0.51 per cent decline in the S&P BSE Sensex. A combined 3.8 million equity shares changed hands on the counter on the NSE and BSE so far.
L&T’s consolidated revenue for the quarter under review rose 24 per cent to Rs 35,708 crore from Rs 28,747 crore reported a year ago. L&T’s net profit was also helped by a higher other income of Rs 606 crore, owing to higher safe treasury investments.
The company said riding on strong execution in project businesses coupled with noteworthy performance in service businesses, the company registered a strong revenue growth.
Analysts on an average had expected profit of Rs 1,833 crore on revenue of Rs 32,836 crore for the quarter.
Earnings before interest, taxation, depreciation and ammortisation or Ebitda for the quarter was more than Rs 4,000 crore, 27 per cent higher from Rs 3,100 crore reported a year back.
The consolidated order book stood at Rs 284,049 crore as on December 31, 2018, up by 5 per cent over December, 2017 position, registering a reasonable growth over a large base. With general elections due in few months, the management expects order inflow to remain dull for some time.
Securities and Exchanges Board for India (Sebi) last week rejected L&T proposal for its Rs 9,000 crore worth share buyback. The rejection was on grounds of a higher post buyback debt-equity ratio beyond the stipulated level at a consolidated basis. L&T’s submission to Sebi was based on its standalone financial numbers.
L&T had underperformed Sensex by 11 per cent in January, 2019 till Friday, the expectation of order inflow guidance cut along with December quarter result is consensus and priced in, according to analysts at JP Morgan.
"Less than 6 per cent FY19 inflow growth and fresh order cancellation in backlog is a downside risk to our FY20 core revenue growth estimate of around 11 per cent. Better than expected core P&L performance in December quarter may assuage worries around execution, for an order book dominated by public sector orders", the brokerage firm said in a report dated January 21, 2019.
L&T has maintained its outlook for FY19, with order inflow guidance of 10-12 per cent, revenue growth of 12-15 per cent accompanied by a 25bps EBIDTA margin improvement. This comes on the back of strong 9-month order inflows of Rs 1.2 trillion, a growth of 16 per cent YoY.
“L&T’s Q3 was led by strong execution, and the drop in infra margins due to cost overruns was negated by the lumpiness in the realty sector. It has held on to its FY19 inflow guidance citing lesser skew in H2/H1 FY19, though while holding on to the revenue guidance is a tad conservative. The company remains the best proxy for the Indian infrastructure story,” analysts at Dolat Capital said in a result update. The brokerage firm maintains 'Buy' rating on the stock with an unchanged target price of Rs 1,600. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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