L&T Q1 net profit may fall 14% to Rs 862 cr: Motilal Oswal
Motilal Oswal expects Larsen and Toubro to report a 51.5 percent degrowth quarter-on-quarter (down 14 percent Y-o-Y) in net profit at Rs 862.1 crore.
July 19, 2013 / 15:37 IST
Motilal Oswal has come out with its first quarter (April-June) earnings estimates for capital goods sector. The brokerage house expects Larsen and Toubro to report a 51.5 percent degrowth quarter-on-quarter (down 14 percent Y-o-Y) in net profit at Rs 862.1 crore.
Revenues are expected to decrease by 37.8 percent Q-o-Q (up 5.6 percent Y-o-Y) to Rs 12621.1 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 52.5 percent Q-o-Q (down 1.8 percent Y-o-Y) to Rs 1224.3 crore.Motilal Oswal report on Larsen and ToubroLarsen and Toubro has guided 20 percent growth in order intake over FY14. The strong growth in order inflow would be supported by (i) Buildings and Factories: Rs 250 billion (up 20 percent), (ii) Other Infra (including Railways): Rs 150 billion, (iii) Power: Rs 250 billion (flat), (iv) Hydrocarbons: Rs 150 billion (up 100 percent). Overseas orders would contribute Rs 250 billion (up 67 percent), supported by large ticket projects like Midyan Oilfield (USD 800 million), Metro/Rail / Expressway projects in the Middle East, etc. Net working capital has been showing a rising trend since the beginning of FY13 due to increased vendor support in a tough market. The management expects revenue to grow 15 percent and EBITDA margin to be maintained at current levels in FY14. We expect EBITDA margin to decline by 70bp in 1QFY14. However, as the share of domestic revenue increases during the year, margins are likely to improve. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
