Engineering and construction major Larsen & Toubro (L&T) is expected to report a 11 percent degrowth in consolidated profit at Rs 890 crore on yearly basis, according to average of estimates of analysts polled by CNBC-TV18. Profit of Rs 996 crore in Q2FY16 was boosted by exceptional gain of Rs 310 crore.
Revenue during the quarter is seen rising 8 percent year-on-year to Rs 25,253 crore but EBITDA (earnings before interest, tax, depreciation and amortisation) may fall 5 percent to Rs 2,466 crore and margin may shrink by 120 basis points to 9.8 percent.
Moderate revenue growth may be on back of growth in infra, IT and finance businesses while change in accounting standards may have an impact on margin.
Further losses in its heavy engineering and metallurgy & material handling segment might also lead to EBITDA margin compression.
Analysts say disappointment on order inflows is unlikely as L&T's announced order inflows stood at Rs 25,000 crore in Q2FY17.
Key factors to watch out for would be working capital, order inflow, guidance, demonetisation impact and Kattupalli port & other asset moves.
L&T has guided FY17 revenue growth of 12-15 percent, order inflow growth of 15 percent and margin improvement of 50 basis points in FY17.
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