Larsen & Toubro Q4 Results Preview: Net profit likely to grow 3%, margin may shrink by 60 bps

Larsen & Toubro (L&T) Q4 FY24 Results Preview: Mumbai-headquartered construction major Larsen & Toubro (L&T) is all set to report its financial results for the quarter as well as the year ended March 31, 2024, on Wednesday, May 8. Analysts expect the private sector infrastructure giant to stage a largely steady financial performance for the three-month period on the back of growth in its core engineering and construction segment and the strong execution of its order book. 

According to Zee Business research, L&T is likely to register a consolidated net profit of Rs 4,109 crore for the January-March period, which translates into a year-on-year increase of 3.1 per cent. The analysts estimate the infrastructure major's fourth-quarter revenue at Rs 65,497 crore, up 12.3 per cent compared with the year-ago period, boosted by growth in its core engineering and construction unit. 

L&T is expected to log Rs 7,482 crore in its earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter ended March 31, as against Rs 6,833 crore a year ago, according to the research.

Zee Business analysts peg L&T's quarterly margin, a key measure of profitability, at 11.4 per cent, down 60 basis points (bps) on a year-on-year basis.

Its margin in the core business is estimated to come in at 9.9 per cent, according to the research. 

L&T Q3 FY24 Results: A Summary

L&T reported a worse-than-expected set of financial results for the December quarter, driven by a ramp-up in the execution of its order book in the projects and manufacturing portfolio. 

Its consolidated net profit grew 15.5 per cent on a year-on-year basis to Rs 2,947 crore while revenue expanded 19 per cent to Rs 55,128 crore for the fiscal third quarter, according to a regulatory filing. 

Zee Business analysts had pegged L&T's third-quarter net profit at Rs 3,400 crore and revenue at Rs 54,100 crore. 

L&T Shares: Past performance

As of May 7, the L&T stock has rewarded investors with a return of 45 per cent in a year, outperforming a 22 per cent rally in the Nifty50 index but underperforming a 54 per cent surge in the Nifty Infra gauge.

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