L&T reported like-for-like standalone revenue growth of 9% YoY and EBITDA margin of 10.5% in 1QFY15 driven by strong performance in the infrastructure segment and supported by the realty segment (1% boost to EBITDA margin). L&T’s reported consolidated revenue/EBITDA looks artificially good due to the Rs13.5bn gain from the sale of Dhamra Port. Adjusting for this, L&T’s infrastructure-related business revenues declined 2% YoY wherein hydrocarbon revenues declined 49% YoY and reported a shocking 1QFY15 EBITDA loss of Rs8.9bn.
Adjusting for the window dressing of the financial statement, L&T’s results were disappointing wherein consolidated adjusted PAT declined 25% YoY. Working capital to sales further deteriorated to 23% due to lower advances and higher credit, leading to higher debt QoQ.
