L&T Q4 Results Review - Healthy Performance, Amid Near Term Challenges: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Prabhudas Lilladher Report.Larsen and Toubro Ltd. reported decent set of quarterly performance with consolidated revenue growth of 10.4% YoY, while margins contracted 74 basis points YoY due to cost pressure in certain engineering, procurement and construction project. Net working capital to sales improved to 16.1% in FY23 versus 19.7% in FY22, owing to robust operational cash flows supported by smart execution and customer’s advances. Project and manufacturing margins came in at 8.6% in FY23 below guidance of 9%, owing to impact of increase in commodity prices and freight issue. Margins are likely to improve from H2 FY24, with new projects reaching margin recognition threshold. NWC to sales guided to be 16-18% for FY24. Tender prospect from Infrastructure stands at Rs 6.5 trillion, energy - Rs 2.9 trillion and hi-tech -Rs 0.25 trillion. We believe L&T is well-placed to benefit in long run with strong tender prospects, better order conversion in domestic market, significant traction in hydrocarbon segment from exports market and expected uptick in private capex. We revise our estimate by 0.6/-1.0 for FY24/25, factoring in lower margins in project and manufacturing business in short term. .Click on the attachment to read the full report:.L&T Q4 Results Review - Miss On Margins; Order Book At Record High: Yes Securities .DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

L&T Q4 Results Review - Healthy Performance, Amid Near Term Challenges: Prabhudas Lilladher

Management guided 10-12% order inflow growth and 12-15% revenue growth, with core Ebitda margin of 9% for FY24.

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