L&T Q3 results today: Profit may grow up to 33%, margin expansion likely; order book may stay strong

Larsen & Toubro Ltd (L&T) is all set to report 23-33 per cent year-on-year (YoY) rise in profit for the December quarter on up to 21 per cent YoY rise in sales. Margin is seen expanding 45-70 basis points on yearly basis. Order book is expected to stay strong.

Elara Securities expects L&T to report a 23.9 per cent YoY rise in adjusted net profit at Rs 3,164 crore for the December quarter compared with Rs 2,552.90 crore in the same quarter last year. Sales are seen climbing 24.4 per cent YoY to Rs 57,716.80 crore compared with Rs 46,389.70 crore in the corresponding quarter last year. Ebitda may rise 12.4 per cent to Rs 5702.70 crore, the brokerage said, which estimated L&T order wins at Rs 66,000 crore for the quarter.

HDFC Institutional Equities sees profit at Rs 3,340 crore, up 38.3 per cent YoY. It expects revenue to come in at Rs 52,280 crore, up 12.7 per cent YoY. Ebitda is seen rising 18 per cent YoY to Rs 5,980 crore while Ebitda margin is seen expanding 51 basis points YoY to 11.4 per cent.

"Revenue is expected to grow by 21 per cent YoY driven by an orderbook of Rs 4.5 lakh crore at the end of Q2FY24, which saw a 21 per cent YoY growth during the same period. With proportion of legacy projects declining in the execution, sequential margin expansion is expected (building in 11.6 per cent Ebitda margin, up 70 bps YoY. Also, improved profitability in Hyderabad Metro and lower debt is expected to further drive PAT growth (expected at 33 per cent YoY)," YES Securities said.

L&T shares are up 5 per cent year-to-date and 75 per cent in the last one year.

Prabhudas Lilladher (PL) expects L&T to report consolidated revenue growth of 19.4 per cent YoY, led by growth in Infrastructure Projects, Hi-Tech Manufacturing and Development Projects. Ebitda margin, it said, is likely to improve 45 basis points to 11.4 per cent, owing to continued profitability improvement in Development Projects and better margins in Energy, IT and Financial Services segments.

"During the quarter, L&T announced robust order intake in the range of Rs 53,500-82,000 crore, driven by a couple of large Hydrocarbon projects in Middle East. The management commentary on tender prospects and status of Development Projects will be key monitorables," PL said while expecting 33.5 per cent YoY rise in profit at Rs 3,281 crore.

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