Q3FY23 Preview: Larsen & Toubro: Revenue seen at Rs454,787 million, PAT at Rs26,615 million

27 Jan 2023 , 04:55 PM

Result date: 30^th January, 2023

Recommendation: Buy 

Target price: Rs 2,279

Source: IIFL Research

Larsen & Toubro (L&T) is likely to post healthy growth in revenue during the December 2022 quarter. The capital goods giant could register order inflow of Rs 600 billion, up 19% over the year-ago quarter on the back of three large orders of Sabarmati Depot, Arcelor Mittal steel expansion and lift water irrigation projects. 

The company could register 18% growth in its EBITDA as compared to the year-ago quarter. Elevated input cost inflation could affect margins during the quarter. The company though could witness reduction in interest cost post restructuring of debt pertaining to the Hyderabad metro project.

Profit After Tax or PAT could grow 30.1% over the year-ago quarter.

Important management insights to watch out for:

• Guidance of order inflow
• Impact of slowing economic growth in major economies

Rs. Million	December 2022 estimates	YoY change	QoQ change
Revenue	454,787	14.8%	6.3%
EBITDA	53,196	17.5%	8.6%
Profit After Tax	26,615	30.1%	19.4%

Source: Brokerage reports