L&T Q3 standalone PAT seen up 2.8% at Rs 790 cr

Engineering firm Larsen & Toubro (L&T) is set to announce its results for the quarter ended December 2010. According to CNBC-TV18 estimates, its standalone profit after tax (PAT) is expected to go up by 2.8% at Rs 790 crore as against Rs 768.8 crore, year-on-year basis.

In last year PAT included exceptional gains including Satyam stake sale (Rs 150 crore)

Revenues are seen going up 26.6% at Rs 10,280 crore versus Rs 8122.2 crore. Operating profit margin (OPM) is seen going down 30 bps at 12.1% versus 12.4%.

Factors to watch
* Revenue recognition from large projects won in H2FY10 drive topline
* 25%+ YoY revenue growth on a low base
* Q3 last year saw de-growth of 6.1%
* Slight dip in margins on higher raw material costs
* Revenue growth guidance is 20% in FY11
* Even if Q3 is met, Q4 performance will also be crucial
* Company will need nearly 30% growth in Q4 on a high base
* Continued postponement of capex is the key concern at this point
* Company has reported orders of about Rs 12000 crore, so far post Q2 
* Company needs order inflow of nearly Rs 51000 crore in H2 to meet full year target
* Management commentary on order inflow will be closely watched
* Comments related to Hyderabad Metro order awaited