Engineering & infrastructure major Larsen & Toubro will declare its quarterly earnings on July 23. Brokerages expect profit to grow in the range of 9-41 percent in Q1 compared to year-ago.
"L&T received reasonable order inflows in the range of Rs 13,000 crore-21,500 crore, which includes more than Rs 2,500 crore in hydrocarbon, more than Rs 7,000 crore in power, over Rs 3,500 crore in water & effluent treatment segment. Order intake during the quarter was affected by a slower pace of order awarding during general elections coupled with muted private capex," ICICI direct said.
The brokerage further said L&T's order backlog suggests better execution rate in the domestic market in Q1FY20E and FY20. Consequently, it expects company's standalone revenue to grow 10.2 percent, EBITDA to grow 13.5 percent with margin expansion.
Kotak, too, expects 10 percent growth in core EPC execution in Q1FY20 driven by infrastructure segment (11 percent), defence engineering, and heavy engineering. It, however added, power, E&A and other segments could drag revenue growth.
At the operating level, Motilal Oswal expects operating profit margin to improve 120bp YoY to 11.5 percent in Q1FY20. Core E&C margins are estimated to be at 9.1 percent versus 9.0 percent in Q1FY19, the brokerage said.
Key issue to watch out for would be execution trend and outlook on some big-ticket size orders, and commentary on private capex cycle.
Disclaimer: The views and investment tips expressed by brokerages on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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