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

livemint.com:

Larsen & Toubro Ltd ( L&T)share price that opened almost flat on Wednesday was trading volatile. While Larsen & Toubro share price gained slightly more than 1% on the upper side, Larsen & Toubro share price also had seen correction of more than 1% in morning trades indicating nervousness ahead of Q4 results. Larsen & Toubro share price has remained the favorite of investors as strong economic growth in the country is likely to drive earnings growth of behemoths as Larsen & Toubro.

Larsen & Toubro share had seen sharp rally to 52- week highs in April after Larsen & Toubro reported a decent Q3 performance with strong order flows that improved the forward revenue visibility. It is the execution that will remain watched for in Q4. as March is likely to see weak activities ahead of general elections, festive season and so on, though January and February are expected to see good execution.

Also Read- Dr Reddy's share price falls 5% post Q4 earnings performance: Should you Buy, Hold or Sell the stock? Analysts at Kotak Institutional Equities expect 18% yoy improvement in core EPC (Engineering, procurement, and construction) revenues as they bake in improved construction activity across projects during the first two months of Q4 and a weak March. Kotak pegs net profit at ₹4414.2 crore for for Larsen & Toubro during Q4 growing 10.7% year-on-year and 49.8 % sequentially. They expect core E&C business Ebitda margin at 9.9%, up 70 bps year-on-year on low base (flat on a two-year basis).

The revenue are expected to rise 16.7% year-on-year and 23.4% sequentially. Analysts at BNP Paribas also expect revenue growth to be in mid-teens. They say that Larsen & Toubro’s existing orderbook of ₹4.7 trillion is adequate to support strong sales