L&T Q2 adjusted PAT seen up 12% at Rs 775 cr

Engineering and construction firm Larsen and Toubro (L&T) is expected report a growth of 12% YoY in adjusted profit after tax of Rs 775 crore for the quarter ended September FY12 as against Rs 694 crore in the corresponding quarter of last fiscal, according to CNBC-TV18 estimates. ((APAT does not include exceptional items))

Total income is seen going up by 18% to Rs 11,006 crore from Rs 9,331 crore year-on-year.

EBITDA is likely to go up by 15% to Rs 1,159 crore from Rs 1,006 crore during the same period.

However, operating profit margin is expected to be at 10.53% in the July-September quarter of FY12 as against 10.78% in same quarter the previous year.

Highlights

Top line growth is expected on the back of execution of strong order backlog

Company's order backlog stood at Rs 1.4 lakh crore at the end of Q1FY12

Slight contraction in margins expected due to commodity price hike, increased competition

There could be some impact on profitability due to forex losses

Order Book

In Q2FY12 company has announced orders worth Rs 7900 crore

Markets would be focused on any change in guidance for order inflows in FY12

Management has so far maintained an order intake growth guidance of 15-20%

Given the increase in competition recently witnessed during the bidding for NTPC bulk tender, this guidance could be difficult to achieve
* L&T bagged orders worth Rs 1600 crore during the recent boiler turbine generator tender awarded by NTPC

Expect a general slowdown in order inflows from the power sector; which currently constitutes ~21% of the order book

Expect orders from hydrocarbons sector to pick-up