L&T may outperform guidance after strong Q1

L&T surprised on the upside of consensus due to stronger-thanexpected growth overseas.

- DEVANGSHU DATTA

The Q1FY25 results were ahead of estimates on both revenue and net profit fronts. The company reported a 15 per cent year-on-year (Y-o-Y) growth in revenues along with 15 per cent Y-o-Y growth in operating profit and 12 per cent Y-o-Y growth in net profit on consolidated basis.

The core engineering & construction (E&C) revenues grew by 18 per cent Y-o-Y, with core E&C margins improving by 10 basis points to 7.6 per cent.

E&C revenue growth was largely driven by improvement in overseas revenue, although domestic revenue was flat Y-o-Y due to elections, labour shortage, and heat wave. The order inflows were up by 8 per cent Y-o-Y and the order book expanded 19 per cent Y-o-Y. But the order prospect pipeline was down by 10 per cent Y-o-Y due to a drop in hydrocarbon prospects. The net working capital remained under control at 13.9 per cent of sales.