Q1FY24 Preview: Larsen & Toubro: Revenue seen at Rs. 423,565 million, PAT at Rs. 22,264 million

21 Jul 2023 , 02:48 PM

Result date: 25^th July, 2023

Recommendation: Buy

Target price: Rs. 2,721

Larsen & Toubro could witness 12% growth in its order book over the year-ago quarter, believe analysts at IIFL Capital Services. Healthy inflows of large order could drive this growth. The company’s core revenue (ex-services) of Rs. 270 billion, could grow 22% over the year-ago quarter led by 19%/45% growth in Infra/HC segments. Power/Defence/Heavy Engineering segments could grow by 15%/18%/20% respectively.

The company’s EBIT margin (ex-services) is seen coming in at 7% (up 40 basis points over the year-ago quarter). Infrastructure business’ margins are pegged at 5.4% (up 60 basis points over the year-ago quarter), other segments aggregate margins are estimated at 9.9% (down 30 basis points over the year-ago quarter). Inflows (ex-Services) are likely to come in at Rs. 351 billion (up 25% YoY/ down 43% QoQ).

The company’s Profit After Tax or PAT could grow 31% over the year-ago quarter.

Rs. Million	June 2023 estimates	YoY change	QoQ change
Order Book	4,075,807	12%	2%
Revenue	423,565	18%	(27)%
OPM (%)	11.2	20 bps	(48) bps
Profit After Tax	22,264	31%	(44)%

Source: IIFL Research