Q2FY24 Preview: Larsen & Toubro: Revenue seen at Rs. 494,884 million, PAT at Rs. 27,293 million

27 Oct 2023 , 11:30 AM

Result date: October 31, 2023

Recommendation: Buy

Target price: Rs. 3,279

Analysts at IIFL Capital Services expect Larsen & Toubro (L&T) to post a healthy performance during the September 2023 quarter. Revenue (ex-Services) could grow 20% over the year-ago quarter, led by 17% growth in Infra and 32%/45% growth in HC & HE. 

They expect EBIT margins (ex-Services) at 6.5% (down 41 basis points year-on-year). Infra EBIT margins could decline 60 basis points). Order inflows (ex-services) are likely to remain robust with a growth of 60% over the year-ago quarter and will be led by large orders in HC and infra segments.

L&T’s Profit After Tax (PAT) could grow 22% as compared to the year-ago quarter.

Important management insights to watch out for:

• Growth outlook across all business segments 
• Outlook on margins

Rs. Million	September 2023 estimates	YoY change
Revenue	494,884	15.7%
EBITDA	53,186	8.7%
EBITDA margin (%)	10.7%	(70) bps
Profit After Tax	27,293	22.4%
Order inflows	751,489	45%
Order book	4,383,086	18%

Source: IIFL Research