Another feather in cap. May not mean a lot in financial terms but speaks about deep engineering capabilities from deep ocean to space
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There seems to more than routine re-fuelling and services which this pact covers.It is repair contract. Above agreement was more of a pre-requisite for such a contract.
Future Commentary by Management:
- Growth in revenue is due to infrastructure, heavy engineering, IT services & power business
- Current order book stand 370000 crores. Strong order book provides growth visibility. Highest orders from infrastructure segment. Domestic orderbook has increased significantly.
- Very strong pipeline seen for H2 FY23: Management indicated a healthy prospect pipeline of Rs6.3trn spread across domestic (Rs5trn) and international (Rs1.3trn). Infrastructure segment prospects stand at Rs4.54trn (Rs3.98trn from domestic and Rs0.56 from international), spread across water (23%), heavy civil engineering (22%), transportation (20%), buildings and factories (19%), power T&D (14%) and metallurgical and material handling (1%).
- The execution is going to be more cash flow based.
- Improved operation efficiencies has led to stale margins for the company despite a challenging environment due to increase in costs.
- Lower interest cost due to debt repayment and metro financing.
- Most of the contracts taken a variable price contracts. In infrastructure business, 85% of the orders taken a variably priced and 65% of the orders on manufacturing & projects segment are variably priced.
- Revenue growth is expected to be 12-15% in group revenues and order inflow for FY23.
- Order inflow for Q2 FY23 grew 23% led by strong order wins in infrastructure & hydrocarbon sectors.
The Defence Ministry has started the process for the procurement of 100 more K9-Vajra tracked self-propelled howitzers which are built in India by Larsen & Toubro (L&T) using technology transferred from South Korean defence major Hanwha Defense.
“The Defence Ministry issued the Request For Proposal to L&T in November. Once they respond to it, the contract negotiations will begin,” a defence official confirmed.
At the height of tensions in eastern Ladakh in 2020, the Army deployed one regiment of K-9 Vajra tracked self-propelled howitzers there to augment its long-range fire power in the backdrop of a massive build-up of forces by China across the Line of Actual Control. Buoyed by their performance, the Army is looking at eventually procuring 200 additional guns. The induction of Dhanush, K-9 Vajra and M777 Ultra Light Howitzers has enhanced the reach of artillery firepower on the northern borders, as reported by The Hindu earlier.
The repeat order could not be more than the volume of the original order, so the number was fixed at 100 howitzers, the official explained.
The K9 Vajra is a 155 mm, 52-calibre tracked self-propelled howitzer built by L&T with technology transferred from South Korean defence major Hanwha Defense based on its K9 Thunder. The 100th gun was delivered to the Army in February 2021, the contract for which was signed in May 2017. The contract also involved maintenance transfer of technology to an Army base workshop to support the howitzers throughout their operational life cycle.
The K9 Vajra was mainly bought for use in deserts, but the standoff prompted them to be deployed in the mountains as well, officials had stated earlier. To ensure that these systems performed optimally in the extreme cold weather conditions of the mountains, the Army also procured winterisation kits for the regiment deployed. There are nine items including batteries, oils and lubricants which need to be insulated from extreme temperatures and don’t freeze at -20 degrees celsius, which the kits cater for.
Since the standoff, the Army has deployed its entire range of medium artillery guns and long-range rockets in the region to augment its long-range fire power as part of the reorientation towards the northern borders.
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Any news about of bonus? It’s been sometime now
Announcement ----Bonus----Record Date
29-05-2017---------- 1:2-------14-07-2017
22-05-2013---------- 1:2-------13-07-2013
29-05-2008---------- 1:1-------03-10-2008
07-06-2006---------- 1:1-------29-09-2006
L&T has see smart upmove in last few months. Looks like market sees L&T to to be infra builder for Hydrogen play. L&T along with LTTS has been strongly moving into engineering solutions in US market. Was surprised to see this recruitment ad for US.
A few years back, a friend had told me, “Investing in L&T means investing in the Indian economy.” L&T is a behemoth. Its everywhere- IT, Infra, Defence, you name it. Some times the stock growth seems irritatingly slow because of its size. That may be the issue.
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I would add Mahindra to same category - 2W, 3W, 4W, all sizes of trucks, diesel engine, tractors, agri implements, auto ancillary, solar, EV, agri products, IT, finance, real estate, hospitality, specialty retail(first cry)
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Update on buyback: L&T to Buyback of 3,33,33,333 of its fully paid-up equity shares from the members of the Company at a Maximum price of up to Rs. 3,000 per Equity Share payable in cash for an aggregate consideration of up to Rs. 10,000 crore via tender offer route through stock exchange mechanism.
See the press release here.
AJ
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L&T Q1 Results: Net profit spikes 46.5% to Rs 2,493 crore, beats estimates. A special dividend of Rs 6 per equity share.
The consolidated order book at all time high at Rs 4,12,648 crore as on June 30, 2023, with international orders having a share of 29 percent
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Another feather in L&T cap
Some more details
https://www.business-standard.com/companies/news/chandrayaan-3-boost-l-t-aims-big-on-commercial-satellite-launch-business-123082700523_1.html
Firmly on road to build aerospace capabilities
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This is a HUGE order.
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Since 1-Apr-2020, the profits have risen at a CAGR of <5% and Sales at <10%. But, the stock prices have gone up at a CAGR of almost 50%. There have been lots of positive developments like huge infra spending, tailwind in defense sector, landmark achievements in Space tech etc. But, is this a case of too much investor fancy for the company?
Disc: Invested
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Probably its because market mostly discounts future earnings in case of growth companies…and here there is expectation of growth because of all the tailwinds uou mentioned.
Good idea maybe to compare similar ratios with what happened in capital goods/infra rally back in around 2004/06 to 2008/09…
I missed being decently invested in capital goods before sector caught fancy and tailwinds became clearly visible and sure to all…
Read some articles where some so called pundits who come up to speak generally during bulls only mentioned that in ateas like defence and rail, rally may continue for few more years…
Disc. Post only for academic purpose and not eligible for any advice.
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Since you have compared from 1st April 2020 the numbers will not look good. 2020 and 2021 were pandemic years and infra companies like L&T were severely impacted due to lockdowns and migration of workers to their native states. L&T has been doing lot of good things of late. Some of them are selling stake in their non-core, loss making assets, focusing on improving RoE of their business etc. Their IT business is also contributing handsomely to overall profit of the company now. With international orders opening up in Oil and gas sector, pipeline is looking very robust. Other than the last week news of almost $4Bn order from Saudi, L&T is also looking to secure big orders from Africa.
https://www.oilandgasmiddleeast.com/news/algeria-begins-work-on-project-to-develop-key-oilfield
Recent interview of their CFO says that private capax is about to pick up and forms around 30-32% of the order book.
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I am new to the market. Can someone please explain how this EPS calculated ?
According to my Information EPS= Net Profit/ No of outstanding shares.
Let’s take number for fy 23
Net profit=12531 cr and outstanding shares are 140.56 cr
Eps=12531/140.56 =89.15 but screener is showing 74.50.
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