L&T Q2FY23 Preview: Company may report double-digit growth in revenue, profit; margins to expand marginally – check expectations

L&T Q2FY23 Preview: Defence and construction company Larsen and Toubro (L&T) Limited is expected to report robust second-quarter earnings for the financial year 2022-23 (Q2FY23) on Monday, October 31, 2022. Both the top and bottom lines may grow in double-digit, while margins are likely to expand marginally in Q2.

L&T’s consolidated revenue may jump by 13.5 per cent year-on-year (YoY) to (estimate) Rs 39,481 crore in the July-September quarter of FY23 as compared to Rs 34,772.9 crore in a year ago quarter, according to Zee Business research report on L&T’s Q2 preview.  

On a consolidated basis, the profit of L&T is likely to surge by 27 per cent YoY to (estimate) Rs 2,311.5 crore in Q2FY23 as against Rs 1,819.5 crore in Q2FY22 and EBITDA may grow by 15 per cent YoY to (estimate) Rs 4,575 crore in Q2FY23 versus Rs 3,994.9 crore in the same quarter a year ago.

The consolidated margins are expected to rise marginally on strong order inflows and moderation in commodity prices - to 11.6 per cent from 11.5 per cent YoY, the report said. It added, “Growth in IT, infrastructure, heavy engineering and hydrocarbons may increase earnings by 13.5 per cent YoY.”

“Strong tender pipeline from domestic as well as exports market expected to boost order inflows. The company announced orders of Rs 6500-13500 crore during the quarter and order execution and inflows are in line with the company’s guidance,” Zee Business research report also noted.

In line with Zee Business expectations, Street also sees L&T’s consolidated revenues may grow by 19 per cent YoY led by a pick-up in execution across segments such as IT, Financial Services, and Infra. Key monitorable would be guidance on order execution and inflows, it added.

Shares of L&T on Friday closed flat with minor gains, up 0.5 per cent to Rs 1974.65 per share on the BSE as compared to a 0.34 per cent rise in the S&P BSE Sensex. The stock in the last one year has gained over 10 per cent and reported a marginal surge of nearly 3 per cent year-to-date.