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The stock of engineering conglomerate L&T has been on a roll and is up over 14 per cent in the last month. The company reported a strong set of numbers for the September period. Revenues were up 21.3 per cent Y-o-Y to ₹32,081 crore in the second quarter of FY19, while net profits rose 22.6 per cent to ₹2,230 crore. The EBITDA (operating) margin was healthy at 11.8 per cent.
Apart from reporting healthy financials, L&T also recorded strong order inflows of ₹41,900 crore, which was up 46 per cent Y-o-Y over the same period in the previous fiscal. Segments such as infrastructure and heavy engineering have delivered strongly in the second quarter, thus continuing fthe momentum seen in the June period.
With the first half of FY19 being quite robust for L&T, earnings are likely to expand strongly in second part of the fiscal as well, given the swelling order book and robust execution capabilities. With valuations being quite comfortable, and fundamentals sound, a further rally cannot be ruled out.
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