L&T Q1 results: Net profit may rise 25% YoY to ₹2,130 crore; to consider share buyback
L&T’s consolidated net profit in Q1FY24 is expected to grow around 25% year-on-year (YoY) to ₹2,130 crore, according to average analysts’ estimates. The infrastructure giant may report revenue growth of about 13% YoY in the first quarter of FY24 at ₹40,500 crore. On the operational front, L&T’s Q1 earnings before interest, taxes, depreciation and amortization (EBITDA) may rise 15% YoY to ₹4,565 crore, while its EBITDA margin is expected to expand 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 domestic market, significant traction in capex from oil exporting countries, mainly hydrocarbon segment and expected uptick in private capex," said brokerage firm Prabhudas Lilladher. Also Read: Tata Motors Q1 results preview: Net profit seen at ₹2,600 crore, JLR margins could expand The brokerage expects consolidated revenue growth for L&T at 12.4% YoY, led by growth in IT, Energy Projects, Hi-Tech Manufacturing and developmental projects. Strong tender pipeline from domestic as well as exports market is likely to drive order inflows. During the quarter, L&T announced orders in the range of ₹7,500-17,500 crore.
Analysts believe this strong order inflow for the June quarter is potentially because of the benefits of upfronting orders before the General elections in 2024. L&T has announced that its board will also consider share buyback along with Q1 results today. This would be the company’s first-ever share buyback.
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