Larsen & Toubro Q4 results today: Here's what analysts expect from financials to order in flows

Larsen & Toubro stock terms has remained the favourite of investors arsenic beardown economical maturation successful the state is apt to thrust net maturation of behemoths arsenic Larsen & Toubro. Larsen & Toubro stock had seen crisp rally to 52- week highs successful April aft Larsen & Toubro reported a decent Q3 show with beardown bid flows that improved the guardant gross visibility.

It is the execution that volition stay watched for successful Q4.  as March is apt to spot anemic activities up of wide elections, festive play and truthful on,  though January and February are expected to spot bully execution.

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Revenues expected to spot bully growth

Analysts astatine Kotak Institutional Equities expect 18% yoy betterment successful halfway EPC (Engineering, procurement, and construction) revenues arsenic they cook successful improved operation enactment crossed projects during the archetypal 2 months  of Q4 and a anemic March. Kotak pegs nett net astatine ₹4414.2 crore for for Larsen & Toubro during Q4  growing 10.7% year-on-year and 49.8 % sequentially.  They expect halfway E&C concern Ebitda borderline astatine 9.9%, up 70 bps year-on-year connected debased basal (flat connected a two-year basis).

The gross are expected to emergence 16.7% year-on-year and 23.4% sequentially. 

Analysts astatine BNP Paribas besides expect gross maturation to beryllium successful mid-teens. They accidental that Larsen & Toubro’s existing orderbook of ₹4.7 trillion is capable to enactment beardown income maturation successful 4QFY24, starring to halfway (ex-services) income of ₹49000 Crore (up 13% year-on-year).

Margin betterment to beryllium watched for

The hold successful completion of debased borderline bequest projects remains 1 cardinal crushed for caution connected borderline trajectory that arsenic per analysts astatine Motilal Oswal Financial Services is expected to beryllium mixed successful 4QFY24. . LT is expected to witnesser a worldly betterment successful margins lone by 2nd Half Y25

The halfway borderline betterment whitethorn inactive beryllium elusive, accidental analysts astatine BNP Paribas. arsenic we expect completion of lower-margin “legacy" contracts to gaffe into 1HFY25.

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Order successful flows to stay strong

Analysts astatine BNP Paribas expect 4QFY24 bid inflows astatine ₹82000 Crore ( up 8% y-o-y) based connected declaration awards  announced truthful acold . They forecast nett moving superior (NWC) to income (ex-finance) to beryllium astatine 16% atend-FY24, resulting successful important currency flows and wide ROeturn of Equity improving to 15% versus 12% successful FY23.

Key Monitorable 

Most analysts stay watchful connected FY25 guidance to beryllium provided by Larsen & Toubro (L&T) . 

Analysts astatine Motilal Oswal Financial Services said that  Domestic tender pipeline, borderline show arsenic good arsenic moving superior rhythm stay among the cardinal monitorable arsenic per them.

Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier taking immoderate concern decisions

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Published: 08 May 2024, 01:47 PM IST