Q3 results preview: L&T revenue seen rising 21% driven by infra

With strong orders continuing from the Middle East, Larsen & Toubro (L&T) is expected to see an uptick in revenue in Q3. Analysts have projected a revenue growth of 21 per cent year-on-year driven by the infrastructure sector with 19 per cent and followed by hydrocarbon, defence and heavy engineering. 

“We will look out for execution in Saudi Arabia projects and trends in the GCC. The consolidated revenue growth is expected to be 20 per cent year-on-year. The engineering and construction EBITDA margin is expected to be at 8.1 per cent,” Motilal Oswal said in a note.

Analysts however do not see any slowdown in the Middle East capex. 

“We believe that not only can the uptick in Middle East capex sustain but also may accelerate over the next 2-3 years, especially in Energy, T&D and Renewable Energy. We expect L&T to be less impacted by the public capex slowdown given its well-diversified sectoral exposures,” BNP Paribas said in its preview. 

In Q2, L&T reported a 5.36 per cent jump in consolidated net profit. Total revenue from operations grew 20.63 per cent to ₹61,554 crore.