L&T Q4 adjusted PAT seen up 16% at Rs 1,691 cr

Adjusted PAT does not include exceptional items of Rs 227 crore for Q4FY11, which constituted gains on sale of investment in an associate company and partial sale of a strategic investment. Reported PAT is likely to go up by just 0.31% at Rs 1,691 crore from Rs 1,686 crore YoY.

Total income is seen going up by 22% to Rs 18,843 crore from Rs 15,384 crore year-on-year.

EBITDA too is likely to go up by 14% to Rs 2,664 crore for the January-March quarter of 2012 as against Rs 2,341 crore in a year ago period.

However, operating profit margin is expected to decline at 14.14% versus 15.22% during the same period.

For FY12, L&T's standalone total income is seen going up by 23% to Rs 53,569 crore YoY and EBITDA is expected to go up by 12% to Rs 6,303 crore.

Adjusted PAT is likely to go up by 14% to Rs 4,227 crore from Rs 3,696 crore while reported PAT up by 7%.

However, operating profit margin is seen falling at 11.77% versus 12.93% YoY.

Q4FY12 Expectations

- Revenue growth is expected on the back of decent execution of large order book of Rs 1,46,000 crore

- Margin decline is expected due to higher input costs and possible M2M losses as seen in Q3

Order Inflows a key factor to watch for

- Company has so far announced order inflows of Rs 12,500 crore during Q4FY12

- Company is set to miss its FY12 order inflow growth guidance of 5% YoY