The company recorded a revenue of Rs 5,833 crore in the Q4FY23.
The industrial major reported a net sales of Rs 5,512 crore in Q3FY24.
Analysts attribute this growth to the robust momentum in new orders on the international hydrocarbon, mobility and power transmission and distribution side.
Profit after tax (PAT) is set to jump by 10-22 per cent Y-o-Y in the range of Rs 4,360 crore to Rs 4,869 crore, while the PAT could jump by 47-65 per cent quarter on quarter (Q-o-Q) compared to the third quarter of FY24.
The company had posted a net profit of Rs 3,986 crore in Q4FY23 and Rs 2,947 crore in Q3FY24.
Key monitorables: With the order upfronting and the geographical diversification seen for L&T in the first nine months of FY24 (9MFY24) owing to ongoing elections, the street expects the company to focus on execution going forward.
Here’s what brokerages expect:
Nuvama: The brokerage said that while the government capex initiatives and ME hydrocarbon ordering shows strong momentum, private capex is yet to show its best.
FY26 strategic plan is to focus on making subsidiaries self-sustainable, strong presence into green energy (hydrogen, battery storage etc.) and non-core exits, analysts said.
With robust order inflow growth, execution completion of legacy projects, refinancing of Hyderabad metro etc., analysts expect margins ramping up but at a slower pace.
“Pickup in core E&C OPMs remains key to L&T,” the brokerage said in a Q4 preview report.
Motilal Oswal: According to analysts at Motilal Oswal, order upfronting was seen in 9MFY24 owing to the Lok Sabha elections. Consequently, Q4FY24 saw some moderation in domestic ordering, during the quarter, LT announced orders worth Rs 65,200 crore.
As per estimates, ordering momentum is set for a healthy uptick after Q1FY25. LT should witness a material improvement in margins in 2HFY24, analysts said.
“For EPC players, international ordering activity, especially in GCC, has been robust, with LT bagging oil & gas, hydrocarbon and civil related orders from Saudi Arabia and UAE. The outlook for these geographies is sanguine as crude oil continues to trade above USD70/bbl,” analysts wrote in a recent report.
The brokerage expects LT to continue to benefit from both domestic and international spending, along with control over its working capital. Further estimating normalisation in order inflows and working capital from Q2FY25 onward.
Antique Stock Broking: The brokerage said that L&T may see its margins contracting by 42 basis points Y-o-Y due pressure on core margins.
First Published: May 07 2024 | 10:02 AM IST