L&T Q2 Results Preview: Profit to rise 2%; margin may remain steady

The country's leading infra company Larsen and Toubro (L&T) is set to report its financial results for the July-September quarter later today after market hours. Zee Business research estimates the company to stage a decent performance supported by nearly mid double-digit growth in the company's E&C business of 14 per cent.

Also, the company's earnings will be aided given the strong execution in the export markets during the quarter under review, added the research inputs. The project execution is already seeing an improvement in Saudi and other Gulf nations.

Analysts expect the engineering to construction conglomerate's consolidated profit to rise 2 per cent on-year to Rs 3,288 crore versus Rs 3,222 crore during the same period last year. The revenue, however is expected to climb 13 per cent year-on-year (YoY) to Rs 57,522 crore in comparison to Rs 51,024 crore reported in Q2FY24.

In terms of operational performance, the company's earnings before interest, tax, depreciation and amortisation (Ebitda) is seen to clock 10 per cent growth to Rs 6,187.5 crore, from Rs 5,632 crore in the year-ago period. EBITDA margin in contrast is expected to decline by 20 bps or 0.2 per cent to 10.8 per cent during the reporting quarter.

Margins and guidance outlook

Analysts believe that the company's margin may remain steady on-year due to ongoing work on some legacy projects. Furthermore, the infra company may maintain its FY25 guidance.

Key monitorables 

- Outlook on Domestic Orders

- Capex trend in the Middle East

- labor shortage issue

-  Impact of rising steel prices

L&T share price performance

In the last one year, L&T stock has risen 17 per cent underperforming Nifty's return of over 28 per cent during the same period.