Engineering major Larsen & Toubro (L&T) Monday reported a consolidated net profit of Rs 967 crore for the June quarter, up 110 percent over the same period last year. Consolidated quarterly sales stood at Rs 18,975 crore, up 10 percent year-on-year.
The company's standalone net profit was Rs 893.5 crore, and standalone sales, Rs 10,337 crore. A CNBC-TV18 poll had estimated standalone net profit at Rs 740 crore and net sales at Rs 11046 crore.
Also read: See 20% order book growth this year, 15% sales growth: L&T
In an interview with CNBC-TV18's Pragya Bharadwaj, Morningstar India research analyst Piyush Jain said profits were ahead of his estimates but he would watch out for other income.
"Overall, the first impression, sales are slightly lower and infrastructure margins are lower," he said.
Below is the edited excerpts from the interview on CNBC-TV18.
Q: What is your first-cut estimate of how L&T's numbers look like on a consolidated basis? It has reported a big jump. What does it include apart from the standalone business?
A: I will start in the reverse order. Standalone, it appears that the profit numbers are higher but when I look at the infrastructure margin, which is the primary and most important driver, those margins have gone down. So there is a concern here.
In the last quarter, commercial realty was a boost and the middle-east contracts would have started kicking in. So the margins have started to normalise. The first take is a concern that the margins are slightly lower in the infrastructure side, so we need to actually look at other income.
Q: The company has delivered net sales of about Rs 10,337 crore for the standalone business. This is versus Rs 9,824 crore that they reported last year, while the standalone profit after tax (PAT) has come in at Rs 893 crore. Our poll was Rs 743 crore Are these numbers in line with what you were expecting?
A: The sales numbers were lower than our expectations. We were expecting around Rs 11,048 crore and on PAT, we expected around Rs 732 crore. So the PAT is much higher but it is slightly amusing because if infrastructure margins have not gone up then it is very unlikely that the PAT can go up so much. That is why I was just trying to look into the numbers: is it actually because of the disposal and what the other income contribution is in that.
Overall, the first impression, sales are slightly lower and infrastructure margins are lower. So that is a bit of concern here.
Q: This time a lot of the focus was going to be on the infrastructure segment of the company. They had booked a lot of the orders say in the last four quarters which centred around this particular segment. Have all the margin concerns alleviated as far as the segment is concerned because last quarter, the performance actually beat street estimates by quite a considerable margin? Amongst the segmental performance in the standalone basis, what are the things that you are going to be watching out for in these results?
A: Firstly, it is infrastructure. The last time the beat was largely driven by infrastructure and also the utilisation capacity such as power and there were other capacities, which had gone up. The infrastructure margins should have started normalising, but what is to be seen is that IT and technology performance should be robust and they have done well.
Financial services also seems to have done well. I just have to look at other income. So if it is able to match other income to PAT, my impression would be that the PAT should be slightly lower than the consensus and our estimates.
Anda sedang membaca artikel tentang
LT Q1 profit a beat but watching other income: Morningstar
Dengan url
http://harmonisem.blogspot.com/2014/07/lt-q1-profit-beat-but-watching-other.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
LT Q1 profit a beat but watching other income: Morningstar
namun jangan lupa untuk meletakkan link
LT Q1 profit a beat but watching other income: Morningstar
sebagai sumbernya
0 komentar:
Posting Komentar