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.