L&T Q3 Earnings: Expected 33% Profit Growth, Likely Margin Expansion, and Continued Strength in Order Book

L&T Q3 Results Preview: HDFC Institutional Equities Forecasts 38.3% YoY Profit Growth at Rs 3,340 Crore, Anticipates 12.7% YoY Revenue Increase to Rs 52,280 Crore. Ebitda Expected to Rise by 18% YoY to Rs 5,980 Crore.

Larsen & Toubro (L&T) poised to announce a 23-33% YoY surge in profit for the December quarter, with sales expected to rise up to 21% YoY. Anticipated margin expansion of 45-70 basis points on a yearly basis, and a resilient order book is expected to persist.

L&T Q3 Earnings: Prabhudas Lilladher (PL) underscores the significance of management commentary on tender prospects and the status of Development Projects as key factors to monitor. PL anticipates a robust 33.5% YoY rise in profit, reaching Rs 3,281 crore.
Elara Securities projects a 23.9% YoY increase in adjusted net profit for L&T at Rs 3,164 crore in the December quarter, up from Rs 2,552.90 crore last year. Sales are expected to climb 24.4% YoY to Rs 57,716.80 crore. Ebitda is estimated to rise by 12.4% to Rs 5,702.70 crore. The brokerage also forecasts L&T’s order wins at Rs 66,000 crore for the quarter.

HDFC Institutional Equities anticipates L&T’s profit to reach Rs 3,340 crore, reflecting a 38.3% YoY increase. Revenue is expected at Rs 52,280 crore, up by 12.7% YoY. Ebitda is projected to rise by 18% YoY to Rs 5,980 crore, with Ebitda margin expanding by 51 basis points YoY to 11.4%.

YES Securities projects a 21% YoY revenue growth for L&T, driven by a Q2FY24 order book of Rs 4.5 lakh crore, marking a 21% YoY increase. With a reduction in the proportion of legacy projects in execution, sequential margin expansion is anticipated, incorporating an 11.6% Ebitda margin, up by 70 basis points YoY.

Additionally, improved profitability in Hyderabad Metro and reduced debt are expected to contribute to a 33% YoY growth in PAT.

L&T shares have surged 5% year-to-date and an impressive 75% over the past one year.

Prabhudas Lilladher (PL) foresees L&T reporting a 19.4% YoY growth in consolidated revenue, primarily driven by advancements in Infrastructure Projects, Hi-Tech Manufacturing, and Development Projects.

The brokerage expects a 45 basis points improvement in Ebitda margin to 11.4%, attributed to sustained profitability in Development Projects and enhanced margins in Energy, IT, and Financial Services segments.

During the quarter, L&T secured a strong order intake ranging from Rs 53,500 to 82,000 crore, propelled by significant Hydrocarbon projects in the Middle East.

Prabhudas Lilladher (PL) highlights that management commentary on tender prospects and the status of Development Projects will be crucial factors to monitor. PL expects a substantial 33.5% YoY rise in profit, reaching Rs 3,281 crore.

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