L&T Q4 Results Preview: Profit may rise 11% year-on-year; revenue growth seen healthy

Infrastructure major Larsen and Toubro (L&T) is expected to report healthy growth in revenues for the quarter ended March 2024, led by strong improvement in E&C segment.

Revenue from operations are likely to grow up to 17% year-on-year, according to an average estimate of four brokerages. Meanwhile, net profit for the same period is seen rising up to 11% year-on-year.

Key monitorables for investors in the report card include domestic tender pipeline, margin performance as well as working capital cycle. Analysts would also look out for an execution ramp-up in Saudi projects and an expected pipeline in the Middle East.


In the preceding December quarter, the company saw 15% year-on-year (year-on-year) growth in consolidated net profit at Rs 2,947 crore and revenue from operations rose nearly 19% to Rs 55,128 crore.

Here's what to expect from L&T's Q4:

Kotak Equities

We expect 18% year-on-year improvement in core EPC revenues as we bake in improved construction activity across projects during the first two months and a weak March.

We expect core E&C business EBITDA margin at 9.9%, up 70 bps year-on-year on low base (flat on a two-year basis).

Nuvama

While govt capex and ME hydrocarbon ordering shows strong momentum, private capex is yet to show its best. FY26's strategic plan is to focus on making subsidiaries self-sustainable, strong presence into green energy (hydrogen, battery storage etc.) and non-core exits. With robust order inflow growth, execution completion of legacy projects, refinancing of Hyderabad metro etc., margins may see ramping up but at a slower pace.

Pickup in core E&C OPMs remains key to L&T. New orders momentum remains robust on international hydrocarbon, mobility and power T&D side.

Motilal Oswal

Expect consolidated revenue growth of 11% year-on-year, led by 12% year-on-year core E&C revenue growth. We expect Core E&C EBITDA margin of 9%, up 50 bps year-on-year, as legacy orders are near the completion.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)