Larsen & Toubro Ltd

About

Larsen & Toubro Ltd is a multinational conglomerate which is primarily engaged in providing engineering, procurement and construction (EPC) solutions in key sectors such as Infrastructure, Hydrocarbon, Power, Process Industries and Defence, Information Technology and Financial Services in domestic and international markets.[1]

Key Points

EX-SERVICE BUSINESS

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  • Market Cap 251,335 Cr.
  • Current Price 1,789
  • High / Low 1,818 / 884
  • Stock P/E 16.6
  • Book Value 548
  • Dividend Yield 1.01 %
  • ROCE 15.3 %
  • ROE 19.3 %
  • Face Value 2.00

Pros

  • Company has been maintaining a healthy dividend payout of 32.82%

Cons

  • Stock is trading at 3.26 times its book value
  • The company has delivered a poor sales growth of 6.10% over past five years.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
30,678 34,234 43,303 29,636 35,328 36,243 44,245 21,260 31,035 35,596 48,088 29,335
25,349 28,506 36,058 24,489 29,283 30,121 37,189 17,536 25,715 29,531 40,007 24,597
Operating Profit 5,329 5,728 7,246 5,147 6,045 6,122 7,057 3,724 5,320 6,066 8,081 4,737
OPM % 17% 17% 17% 17% 17% 17% 16% 18% 17% 17% 17% 16%
Other Income 841 733 813 747 815 660 793 961 4,973 1,274 1,028 648
Interest 2,186 2,510 2,473 2,665 2,709 2,708 2,756 3,160 3,027 2,748 2,670 2,393
Depreciation 478 405 435 461 630 660 711 672 713 702 817 717
Profit before tax 3,507 3,545 5,151 2,767 3,522 3,415 4,382 853 6,552 3,890 5,623 2,275
Tax % 23% 32% 24% 29% 22% 21% 22% 24% 10% 27% 37% 32%
Net Profit 2,230 2,042 3,418 1,473 2,527 2,352 3,197 303 5,520 2,467 3,293 1,174
EPS in Rs 15.91 14.56 24.37 10.50 18.01 16.76 22.77 2.16 39.32 17.57 23.44 8.36

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
43,776 51,972 64,255 74,426 85,054 91,929 101,122 109,312 119,683 135,220 145,452 135,979 144,054
39,149 43,849 53,578 63,032 70,968 76,245 85,637 92,691 99,572 112,354 120,899 112,519 119,850
Operating Profit 4,627 8,123 10,676 11,394 14,086 15,684 15,486 16,620 20,111 22,866 24,553 23,460 24,204
OPM % 11% 16% 17% 15% 17% 17% 15% 15% 17% 17% 17% 17% 17%
Other Income 5,011 1,928 886 2,523 1,337 1,422 1,219 1,466 1,465 2,701 3,015 8,111 7,923
Interest 1,520 1,931 3,008 4,642 6,494 7,266 6,899 6,829 7,714 9,339 11,021 11,750 10,838
Depreciation 639 1,319 1,580 1,637 1,446 2,623 1,787 2,370 2,223 1,923 2,462 2,904 2,949
Profit before tax 7,478 6,801 6,974 7,638 7,483 7,217 8,020 8,887 11,639 14,305 14,086 16,918 18,339
Tax % 27% 34% 33% 31% 35% 31% 30% 23% 27% 28% 23% 24%
Net Profit 5,452 4,464 4,702 5,219 4,923 4,765 4,281 6,041 7,370 8,905 9,549 11,583 12,454
EPS in Rs 40.24 32.58 34.13 37.69 35.41 34.17 30.64 43.17 52.59 63.48 68.02 82.47 88.69
Dividend Payout % 14% 20% 21% 22% 27% 32% 40% 22% 30% 28% 26% 44%
Compounded Sales Growth
10 Years:10%
5 Years:6%
3 Years:4%
TTM:5%
Compounded Profit Growth
10 Years:13%
5 Years:28%
3 Years:17%
TTM:82%
Stock Price CAGR
10 Years:11%
5 Years:13%
3 Years:14%
1 Year:100%
Return on Equity
10 Years:15%
5 Years:16%
3 Years:16%
Last Year:19%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
120 122 122 123 185 186 1,499 1,334 1,186 1,257 1,685 1,405
Reserves 20,521 24,929 29,264 33,737 37,526 40,723 43,994 49,877 54,466 61,941 66,442 75,588
Borrowings 24,607 37,216 51,568 63,144 80,846 93,630 86,822 92,807 106,619 124,579 141,770 133,505
24,902 32,447 38,228 45,924 50,324 58,727 63,088 68,700 81,874 91,236 98,194 100,721
Total Liabilities 70,152 94,713 119,182 142,928 168,881 193,266 194,091 211,571 243,240 278,036 306,687 310,095
12,361 15,624 19,403 30,389 32,397 34,738 14,176 16,677 18,580 21,194 43,653 44,319
CWIP 6,618 12,362 14,913 11,351 14,179 14,993 10,974 13,298 13,443 13,919 3,311 500
Investments 9,861 9,216 8,789 8,768 8,109 9,612 15,465 19,753 15,311 20,907 20,047 39,627
41,312 57,511 76,076 92,421 114,197 133,923 153,475 161,843 195,905 222,016 239,675 225,649
Total Assets 70,152 94,713 119,182 142,928 168,881 193,266 194,091 211,571 243,240 278,036 306,687 310,095

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
2,118 -1,616 -6,227 -4,355 -7,143 -1,365 -3,240 6,655 -10,031 -4,756 6,694 22,844
-5,025 -5,929 -5,864 -6,922 -5,510 -4,778 -4,627 -9,796 3,914 -11,023 -8,408 -5,431
4,770 7,868 11,968 11,429 13,136 7,903 7,253 2,896 9,370 15,440 6,372 -15,274
Net Cash Flow 1,863 324 -123 152 483 1,759 -613 -245 3,254 -338 4,658 2,139

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 104 99 117 113 113 119 94 96 101 99 102 113
Inventory Days 198 53 60 72 69 76 51 41 45 51 44 51
Days Payable 240 251 241 242 254 271 275 297 345 336 335 395
Cash Conversion Cycle 63 -99 -64 -58 -71 -75 -130 -160 -199 -186 -188 -231
Working Capital Days 122 75 105 130 137 112 141 131 151 159 174 164
ROCE % 17% 15% 14% 13% 12% 11% 11% 11% 14% 13% 13% 15%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
18.93 18.78 19.00 20.03 19.52 18.78 16.90 18.77 17.89 21.11 22.02 22.88
38.39 39.13 38.57 37.61 37.46 37.42 37.99 36.05 35.55 33.30 33.19 32.75
0.25 0.25 0.26 0.27 0.28 0.29 0.38 0.50 0.50 0.50 0.50 0.23
42.44 41.84 42.17 42.09 42.74 43.51 44.72 44.67 46.06 45.09 44.29 44.14

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