Business & Investment

L & T Q3 Preview: Profit could drop up to 24% and purchase orders remain strong

New Delhi: Capital goods giant Larsen & Tubro (L & T) is expected to report a decline in profits in the December quarter, despite the company’s continued strong orders. Sales are growing to single digits.

Brokerage firm Edelweiss expects engineering and construction giants to reduce net income for the third quarter of the fiscal year by 1.8% from Rs 2,161 in the year-ago quarter to Rs 2,121. This is the same as sales increasing 8.5% from 36,243 rupees year-on-year to 39,322 rupees.

“Core EPC revenue (excluding E & A) is expected to increase 12% year-on-year and core EBIT margin is expected to decrease 50 basis points year-on-year to 7.3%. Quarterly core order inflows will reach Rs 70,000-72,500 We expect it to be Rs 6.65 billion during the order announcement quarter, “said Edelweiss.

Sharekhan expects a similar 8% increase in earnings, but a 10% decrease in profits. HDFC Securities has fixed L & T profits at Rs 1,980, down 16% year-on-year. We expect the Ebitda margin to be 11.4%. Sales are expected to increase 1.1% to Rs 36,640.

Another brokerage firm, Prabhudas Lilladher, expects adjusted profit to rise 23.9% year-on-year to Rs 1,789.80. Sales are expected to decrease 2.7% to Rs 35,258.

“Revenue and PAT are expected to decline by 3% and 15% year-on-year. Demand is expected to grow gradually and order inflows are expected to remain favorable. L & T focuses on liquidity management , Has made great strides in the current difficult scenario. ”



L & T Q3 Preview: Profit could drop up to 24% and purchase orders remain strong

https://economictimes.indiatimes.com/markets/stocks/earnings/lt-q3-preview-profit-likely-to-fall-up-to-24-order-book-seen-remaining-strong/articleshow/80432156.cms L & T Q3 Preview: Profit could drop up to 24% and purchase orders remain strong

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