L&T Q1 Preview: PAT may surge 26% YoY, order inflow outlook for FY24 key

economictimes.indiatimes.com:

The consolidated net profit is seen rising 26.3% year-on-year (YoY) to Rs 2,149 crore, according to the average of estimates given by 9 brokerages. The revenue is expected to grow nearly 14% YoY to Rs 40,710 crore. The Nifty50 constituent is set to release its earnings on Tuesday.

According to analysts, L&T is likely to report healthy order inflows for the June quarter, with a pick-up in execution in the mainstay infrastructure vertical. Besides an eye on the Q1 earnings, analysts will look for guidance on revenue growth and order inflows for the current financial year from the engineering major.Here is a summary of analysts’ expectations on the earnings front:YES SecuritiesConsolidated revenue is expected to grow by 14% YoY, led by pick up in execution across segments such as IT, financial services and infrastructure. Key monitorables would be guidance on order execution and inflows.

Q4 order inflows stand at Rs 270 billion at the higher range.PhillipCapitalThe brokerage expects L&T's order inflows at Rs 450 billion+ (Core/non-core: Rs 300 billion/Rs 150 billion). This does not factor in the contract from the Bullet Train project worth Rs 157 billion (L&T is yet to receive LoI). Consolidated revenue is expected to grow 16% YoY, led by core/non-core business revenue growth of 16%/16% YoY.

EBITDA margins likely to remain flat YoY, in line with the management guidance.Kotak Institutional EquitiesIt expects 12% YoY improvement in core EPC revenues on improved construction activity across projects during the quarter. Core E&C business EBITDA margin will likely be at 8.7%, up by 50 bps YoY. Improvement in margin will likely be driven by lower commodity prices.SharekhanIt anticipates core engineering business to drive topline