Nomura India note that enforcement is weak for engineering, procurement, and construction (
) companies like L&T in the June quarter, but will look optically strong on the back of previous year’s weakness impacted by a nationwide shutdown. It believes recent restrictions due to a second Covid wave will affect companies like L&T that are exposed to Covid-affected states such as Maharashtra.
“We expect Ebitda (L&T) margins to continue to weaken on the back of strong commodity prices. Working capital levels will be an important observable level. However, finances are likely to continue. continue to be affected by losses from Hyderabad Metro on a year-on-year basis,” it said.
Motilal Oswal L&T earnings forecast at Rs 1,451.50 crore, up 1,108.70% YoY. Edelweiss closed at Rs 1,554 crore, up 1,197% year-on-year. “L&T’s core E&C business is expected to grow 82% YoY on a 46% YoY decline in Q1FY21. Consolidated revenue growth at 50% YoY will be based on 28% growth in last year’s base quarter. Margin will be much better (YoY) due to better resilience and execution. However, it will be slightly below the periodic level,” said Edelweiss.
HDFC Institutions Joint Stock Company recorded a profit figure of Rs 1,490 crore. It expects sales to grow 52.4% year-on-year (down 32.6% quarter-on-quarter) to Rs 32,390 crore. Ebitda’s margins were boosted by 353 basis points to 11.2%. It could fall in a row of 213.4 basis points, the broker said. Kotak Institutional Joint Stock Company closed profit at Rs 1,432.80 crore, down 57.80% sequentially. Sales were recorded up 41.6% year-on-year to Rs 30,109 crore, but down 37.4% from 48,087 crore in the March quarter.
“We expect core EPC revenue to improve 61% YoY and decline 13% over two years. We expect some disruption due to the second Covid wave through the first 6 months of 22 although we Impact expectations are modest compared to the first wave,” it said.
https://economictimes.indiatimes.com/markets/stocks/earnings/lt-q1-preview-profit-likely-to-rise-multifold-yoy-but-may-halve-sequentially/articleshow/84706376.cms | L&T Q1 preview: Profit likely to rise multifold YoY but may halve sequentially