News

Published: October 31, 2023
Updated: October 31, 2023

L&T Q2 2023 Results Preview: Robust Growth and Margins in Focus

Larsen & Toubro (L&T), the renowned engineering and construction conglomerate, is set to unveil its financial results for the July-September period (Q2 FY24) on October 31. Anticipated to deliver a robust quarterly performance, the company is poised for significant profit growth, supported by a strong order book and favourable trends in commodity rates. In this preview, we delve into L&T's expected Q2 performance, which has captured the attention of investors and analysts alike.

Strong Profit Growth Expected:

Analysts suggests that L&T is on track to report an impressive 39% year-on-year increase in consolidated profit after tax (PAT) to reach Rs 3,108 crore for the quarter ending on September 30, 2023. The growth is a testament to the company's solid financial strategy and market positioning.

Revenue on the Rise:

Analysts estimate that L&T's revenue is set to surge by 19.4% on a year-on-year basis, reaching Rs 51,074 crore for the fiscal second quarter. This uptick in revenue underlines L&T's ability to capitalise on opportunities and maintain steady growth.

Stable Margins Amidst Challenges:

While L&T anticipates significant profit growth, its margin is expected to experience a marginal reduction, projected at 11% for the quarter ending September 2023 compared to 11.5% during the same period in 2022. This slight dip in margin is a result of the dynamic market environment, which the company is navigating adeptly.

Key Metrics Point to Positive Trends:

L&T's quarterly earnings before interest, tax, depreciation, and amortization (EBITDA) are estimated at Rs 5,500 crore, a 12% increase from the previous year. These figures underscore the company's ability to manage its operations efficiently.

A Glimpse into the Past:

L&T's strong performance in the first quarter of the financial year provides a favourable backdrop for Q2. In the April-June period, the company reported a 46.5% year-on-year increase in consolidated net profit, reaching Rs 2,493 crore. Coupled with a substantial 33.6% revenue increase to Rs 47,882.4 crore, these results are indicative of a positive trajectory.

Market Performance:

In 2023, L&T shares have surged by an impressive 38%, significantly outperforming the benchmark Nifty index, which recorded a gain of 5.1%. This market performance reflects the investor confidence in L&T's long-term growth potential.

L&T's anticipated Q2 results showcase the company's resilience and adaptability in a dynamic economic environment. Despite a marginal dip in margins, the robust profit growth and strong revenue figures highlight L&T's ability to thrive. As investors eagerly await the official results and L&T management's insights, the company's trajectory remains a promising focal point in the market.