With strong order book in the domestic market, Larsen & Toubro (L&T) is expected to see an uptick in private capex and will be benefited from capex from oil-exporting countries, particularly in the hydrocarbon segment.
Analysts have projected a revenue growth of 11.6 per cent year-on-year, led by growth in IT, Energy Projects, Hi-Tech Manufacturing and developmental projects.
“We expect L&T to report revenue and PAT CAGR of 12.2% and 19.8% between FY22-FY25E. A strong tender pipeline from the domestic as well as the export market is likely to drive order inflows. During the quarter, L&T announced orders in the range of Rs 21000-34000 crore. Management commentary on the status of non-core assets like Nabha power, metro ridership and financial assistance will be key,” said Amnish Aggarwal - Head of Research, Prabhudas Lilladher Pvt Ltd.
The company’s infrastructure and defence segments will grow by 6 and 28 per cent, respectively over the year-ago quarter. FY23 sales growth could come in at 17 per cent, which is ahead of management guidance.
“Inflows (ex-Services) are seen at ₹52,000 (down 15 per cent year-on-year/up 14 per cent QoQ)/ up13 per cent for FY23,” mentions IIFL Securities.
Meanwhile, the company’s Profit After Tax (PAT) could increase by 6 per cent over the year-ago quarter and could be impacted by flat operating margins and lower treasury income.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.