Dalal Street

Larsen & Toubro’s (L&T) Q3FY11 PAT, at Rs 8.1 bn, driven by strong execution in the E&C segment. Robust revenue growth of 41% YoY reinforces confidence in execution of strong order book of Rs 1,149 bn. Margins have dipped YoY by 150 bps to 10.8%, but this is more a qtly fluctuation than a trend. While revenue guidance has been maintained (20% YoY growth in FY11E), mgmt has highlighted that order flow guidance (25% YoY growth) could be at risk due to deferment of orders to FY12E.

L&T removed order for IT parks of ~Rs20bn from Godrej & Arun Excello on lack of progress. Led by delay of orders from power (more…)

The country’s watchdog – SEBI settled dispute of Reliance Infra & Reliance Natural Resources involved in fund diversion to group company – RCom by collecting fine amounting to Rs 50 [Rs 25 cR + Rs 25 cR] Cr from Directors including Anil Ambani. This tells us how bad these companies are run – Reliance Infra and RNRL [Now part of Reliance Power] Reliance ADAG Large Cap Stocks were caught in Bloodbath on the Street with each of them falling between 6% to 10%.

The SEBI order said that (more…)

HDFC reported F3Q11 PAT of Rs 8.9 bn (+33% YoY / +10% QoQ) This was higher than estimate of Rs. 8.2 bn though it included capital gains (pre-tax) of Rs 1.67 bn [Sale of IL&FS Investment]. Headline loan growth accelerated to 20.6% YoY from 18.7% in the previous quarter and adjusted loan growth (i.e. including sell-downs) picked up to 27% from 24%.

Housing Loan Growth – is picking up for HDFC Ltd after being subdued for most part of last year. Balance sheet loan growth has picked up from 9% YoY in 3Q FY10 to (more…)