Q4FY22 Preview: Larsen -; Toubro: Revenues seen at Rs33,000 crore, PAT at Rs2,980 crore

11 May 2022 , 10:59 AM

Result date: 12^th May, 2022
Recommendation: Buy
Target price: Rs2,260
Source: IIFL Research
 
Larsen & Toubro (L&T) witnessed EPC order inflows between Rs9,000-22,000 crore (ex-services segment) during the March 2022 quarter. These inflows encompassed segments of railway, hydrocarbon, power T&D, water treatment, heavy engineering and buildings & factories. Healthy order inflow is commendable given the challenging macro environment.

Company is all set to post 11% growth in its standalone revenue as compared to the year-ago quarter.

Improved execution could drive 10% growth in EBITDA and keep EBITDA margin stable.

Profit After Tax (PAT) is likely to grow at a faster pace compared to revenue, and will be driven by lower outgo towards interest expense and taxes.

Important management insights to watch out for:
·         Commentary on order inflows, execution pace
·         Trends into working capital and cash flow management
 

Rs Crore	March 2022 estimates	YoY change	QoQ change
Revenue	33,000	11.1%	53.4%
EBITDA	3,956	9.5%	129.0%
Profit After Tax	2,980	20.6%	78.7%

Source: Brokerage reports