Infrastructure and engineering major Larsen & Toubro reported a 39 percent rise in consolidated net profit to Rs 972.4 crore year-on-year (YoY) and revenue of Rs 26,286 crore -- a marginal growth of 1.4 percent on a yearly basis -- for the third quarter of FY17.
L&T achieved an 18 percent growth in Q4 of the last fiscal, and Rohit Natarajan, Analyst Institutional Equities, IDBI Capital Markets Services, says its Q4FY17 guidance of 20 percent also looks achievable.
Speaking to CNBC-TV18, he said that on the whole, L&T has an intact order pipeline, there have been no cancellations and prospect order inflow also looks healthy.
On the company's stock price, Natarajan said that there could be a knee-jerk reaction but going ahead there are a bunch of catalysts -- like the Union Budget, and big ticket prospect orders of around Rs 700-800 billion -- which could act as a trigger and push the stock price back to Rs 1,600 per share levels in the near term.
In this quarter, good operational performance gave boost to the company's bottomline but it has cut its full year revenue guidance to 10 percent from 12-15 percent earlier. It has however maintained its EBITDA margin guidance.
The consolidated order book of the L&T Group stands at Rs 2.58 lakh crore at the end of December quarter, up 1.4 percent (YoY).For full interview, watch accompanying video.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
