On Tuesday, July 25, the infrastructure juggernaut Larsen & Toubro (L&T) is scheduled to release Q1 earnings. On the strength of a large order book, the firm is anticipated to see high-profit growth in the quarter ending in June 2023.
According to typical analyst projections, L&T’s consolidated net profit in Q1FY24 is anticipated to increase by about 25% year over year (YoY) to 2,130 crore.
In the first quarter of FY24, the infrastructure behemoth may announce a revenue increase of roughly 13% YoY at Rs. 40,500 crore.
In terms of operations, L&T expects its Q1 earnings before interest, taxes, depreciation, and amortization (EBITDA) to increase 15% YoY to 4,565 crores, while its EBITDA margin is anticipated to increase by 29 basis points (bps) to 11.3%.
“L&T is well-placed to benefit from overall diversified tender prospects with better order conversion in the domestic market, significant traction in capex from oil exporting countries, mainly hydrocarbon segment, and an expected uptick in private capex,” said brokerage firm Prabhudas Lilladher.
The brokerage anticipates L&T’s overall revenue to increase by 12.4% YoY, driven mostly by growth in the IT, Energy, Hi-Tech Manufacturing, and Developmental Projects sectors. Order inflows are anticipated to be fueled by a robust tender pipeline from the local and export markets.
L&T reported orders for the quarter that were between 7,500 and 17,500 crore. The benefits of upfronting orders before the general elections in 2024, according to analysts, may be the source of this robust order inflow for the June quarter.
In addition to today’s Q1 results, L&T has said that its board will also take share buybacks into consideration. The corporation would be repurchasing shares for the first time ever. Participants in the market will be interested in learning more about the L&T share repurchase and special dividends.
In the future, it will be possible to closely follow the company’s management comments on the condition of non-core assets including Nabha power, metro ridership, and financial aid.
In advance of today’s Q1 results, L&T’s share price was trading 1.17% down at 2,574.75 a share at 11:45 am on the BSE.
