Engineering and construction behemoth Larsen and Toubro (L&T) is expected to deliver another steady quarter, but with the order book growth nearly flat. A Bloomberg poll of 14 analysts put its revenue estimate for the quarter at ₹31,292.4 crore and net profit at ₹1560.3 crore, nearly 30% higher than the previous period.
A report by Prabhudhas Lilladher said, “We expect order inflow to remain flat year-on-year at ₹359 billion in Q1FY20. Profit after tax looks higher year-on-year due to adjustment in 1QFY19 on account of gains from Kattupalli Port.
“The capex continues to be led by state government while private capex recovery continues to remain 8-9 months away," the brokerage firm said. “Most corporates continue to be confident of medium-term growth prospects, given the various initiatives taken by the government."
The analysts expect a slight improvement in margins. “We expect order inflows of around ₹35,000 crore, a decline of 3% on the high base of last year and 8% YoY growth in core EPC revenues led mainly by the infra segment, while services businesses is expected to grow healthy at 15%," an ICICI Direct report said.
In the March quarter, the company reported strong revenue growth and operational efficiencies leading to a net profit of ₹3,418 crore. Revenue from operations for the quarter stood at ₹44,933 crore.