L&T Q1 Results Review - Strong Start To FY24 But Guidance Unchanged: Centrum Broking
The board has announced buy back of Rs 100 billion and special dividend of Rs 6/share.
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Centrum Broking Report
Larsen and Toubro Ltd. reported stellar set of numbers with strong 34%/46% YoY growth in revenue and adjusted profit after tax driven by better execution in projects and manufacturing segment.
While L&T's revenue was significantly ahead of our estimate, Ebitda margins at 10.2% were lower on account of legacy Covid projects and increased staff costs.
Despite strong show in Q1, the management has maintained its revenue guidance of 12-15% growth and 10-12% growth in order inflow for FY24 considering the possible softening in awarding activity in Q4 FY24 on account of general elections.
We expect the management to revise its guidance upwards if awarding and execution momentum is maintained in Q2 FY24.
Given the record orderbook of Rs 4.1 trillion, robust prospect pipeline of Rs 10 trillion, controlled net working capital environment and improving development business dynamics, we maintain our 'Add' rating on the stock with revised target price of Rs 2,892 (Rs 2,246 earlier).
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