L&T Q2 Results Preview: PAT likely to rise 39%, margin may shrink by 50 bps

Engineering and construction conglomerate Larsen & Toubro (L&T) is scheduled to announce its financial results for the July-September period (Q2 FY24) on Tuesday, October 31. The company is widely expected to stage a strong quarterly performance driven by a strong order book and easing commodity rates with largely stable margins.  

According to Zee Business research, L&T is expected to register a year-on-year rise of 39 per cent in consolidated profit after tax (PAT) to Rs 3,108 crore for the quarter ended September 30, 2023. The analysts estimate the company’s revenue to grow 19.4 per cent on a year-on-year basis to Rs 51,074 crore for the fiscal second quarter.  

The construction major is estimated to report Rs 5,500 crore in quarterly earnings before interest, tax, depreciation and amortisation (EBITDA), which translates to an increase of 12 per cent compared with the corresponding period a year ago, according to the research.  

Zee Business analysts peg the infrastructure company’s margin, a key measure of profitability, to come in at 11 per cent for the quarter ended September 2023 as against 11.5 per cent for the quarter ended September 2022.  

Investors will closely monitor the L&T management’s commentary on its business outlook, tender pipeline and financial assistance.

How Larsen & Toubro fared in the June quarter  

Larsen & Toubro began the financial year on a positive note, with better-than-expected top and bottom lines.  

L&T reported a 46.5 per cent year-on-year jump in consolidated net profit to Rs 2,493 crore with a 33.6 per cent increase in revenue to Rs 47,882.4 crore for the April-June period. Its margin stood at 10.2 per cent for the fiscal first quarter, according to a regulatory filing.

Zee Business analysts had estimated the construction company’s quarterly net profit at Rs 2,110 crore, revenue at Rs 40,619.3 crore and margin at 10.84 per cent.  

L&T share price: Past performance 

In 2023 so far, L&T shares have risen 38 per cent, sharply outperforming a 5.1 per cent gain in the headline Nifty index.  

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