CMP: ₹3,623
Larsen Toubro’s Q1-FY25 outcomes had been 3 per cent forward of our estimates on each income and PAT. The corporate reported 15/15/12 per cent y-o-y development in income/EBITDA/PAT on a consolidated foundation. In a seasonally weak quarter, core E&C revenues and EBITDA additionally grew by 18/21 per cent y-o-y, with Core E&C margins enhancing by 10 bps to 7.6 per cent. Each Core E&C income and margin beat our estimates.
Core E&C income development was largely pushed by sharp enchancment in abroad income, whereas home income was flat YoY as a consequence of elections, labor scarcity and warmth waves.
Order inflows/order e-book had been up by 8/19 per cent y-o-y, primarily pushed by worldwide geographies. The order prospect pipeline was down by 10 per cent y-o-y at ₹9.1 lakh crore as a consequence of a drop in hydrocarbon prospects. NWC remained low at 13.9 per cent of gross sales.
We keep our estimates and TP of ₹4,150 primarily based on SOTP, valuing core enterprise at 30x P/E on Jun’26E EPS and 25 per cent holding firm low cost for subsidiaries.
Key dangers: A slowdown so as inflows, delays within the completion of mega and ultra-mega tasks, a pointy rise in commodity costs, enhance in working capital, and elevated competitors are just a few draw back dangers to our estimates.
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