<ul><li>L&amp;T reports the best ever quarterly order inflow in Q2 at ₹89,153 crore.</li><li>The company says that the prospect pipeline for the next 6-12 months is encouraging.</li><li>L&amp;T’s EBIDTA margins for the infrastructure segment went down by 1.1% YoY on account of input costs.</li><li>Company says that margins will normalise in the subsequent quarters as it closes its pre-Covid legacy projects. </li></ul>Larsen &amp; Toubro’s second quarter net profit went up by 45% to ₹3,223 crore as compared to ₹2,229 crore in the same quarter last year. Its revenue from operations grew 19% to ₹51,024 crore in Q2 FY24 as compared to ₹42,763 crore in Q2 FY23, the company said on Tuesday. The construction major also reported its best ever quarterly order inflow in Q2 at ₹89,153 crore across segments — registering a 72% YoY growth. “During the quarter, we have received the highest ever order inflows in the history of the company. The company now tops the list of international EPC (engineering procurement and construction) contractors working in the MENA region in terms of value for projects under execution,” said <keyword id="4393142" type="General" weightage="50" keywordseo="s-n-subrahmanyan" source="Orion">S N Subrahmanyan</keyword>, CMD of L&amp;T. ‘To outperform FY24 guidance’ R <keyword id="224782" type="General" weightage="80" keywordseo="shankar-raman" source="Orion">Shankar Raman</keyword>, CFO of L&amp;T added that the prospect pipeline for the next 6-12 months is also encouraging. “It’s likely that we will outperform the order inflow and revenue guidance for FY24 depends on H1 performance,” he said in a media conference call. At the beginning of the financial year, it guided for 10-12% growth in order intake for FY24, and revenue growth of 12-15%. Its consolidated order book stands at ₹4.5 lakh crore as on September 30, 2023, with international orders having a share of 35%. A large chunk of second quarter’s order inflows are from the Middle East, particularly Saudi Arabia. Two-thirds of Q2’s order wins are from the international markets. And, 80% of its international orders are from the Middle East, particularly Saudi Arabia. But the company does not expect the ongoing conflict between Israel and Hamas to significantly disrupt the execution or derail the progress of its projects. “We have just turned a corner in supply chain constraints seen during Covid and getting back to normalcy. While it’s incorrect to take the risk off the table, it’s not making us lose sleep,” said Raman. Margins will normalise The company’s earnings before interest tax depreciation and amortization (EBIDTA) grew 15% for the quarter. However its EBIDTA margins went down to 11% from 11.4% on a year on a year basis. The EBITDA margin of its key infrastructure segment went down by 1.1% YoY to 5.4% in Q2. This margin squeeze is due to input costs rise seen for pre-Covid legacy contracts. “The margins for the infrastructure segment will be more normalized in the subsequent quarters considering these projects are nearing completion,” said Raman.

L&T Q2 net profit grows 45%; confident of outperforming FY24 guidance

<ul><li>L&amp;T reports net profit of ₹2,229 crore for the quarter ending September. </li><li>Revenue from operations during the quarter rose 23% at ₹42,762 crore as against ₹34,772 crore last year. </li><li>The company bagged orders worth ₹51,914 crore at the group level during the quarter. </li></ul> Larsen &amp; Toubro (L&amp;T) today reported a 22.5% jump in consolidated net profit to ₹2,229 crore for the second quarter as compared to ₹1,819 crore in the same period last year. Revenue from operations during the quarter rose 23% at ₹42,762 crore as against ₹34,772 crore last year. Its operating margin came down marginally to 11.46% in Q2 from 11.49% last year. While margins in segments like energy, high-tech manufacturing and development projects have improved y-o-y, margins narrowed in the IT services segment and the key segment of infrastructure. In the infrastructure segment, its Q2 EBIDTA margins stood at 6.6%, lower than the 8.3% that it had recorded in the same quarter last year. “The softness of EBIDTA margins can be attributed to the mix of jobs, their progress and input cost pressures due to commodity price movements in the last 12-18 months. Since there is now softness in commodity prices, we should be able to recoup what we have lost in the first half of the year,” said R Shankar Raman, CFO of L&amp;T in an earnings conference call. During the quarter, the company recorded orders worth ₹51,914 crore at the group level, growing 23% on year. Two-thirds of these orders are for domestic jobs. International orders stood at ₹17,341 crore during the quarter comprising 33% of the total order inflow. The consolidated order book of the group stood at ₹3.72 lakh crore as on September 30, 2022, with international orders having a share of 28%. Given the order booking that has been seen in the first half of the year, the company said that it’s confident of meeting its 12-15% revenue and order book guidance – at the upper end of the bracket. The company also recorded an exceptional gain of ₹300 crore from divestment of stake in subsidiary companies in July-September; as compared to ₹782 crore last year. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1 FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY22 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue from operations </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹42,762 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹35,853 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹34,772 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,229 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,702 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,819 crore </td></tr></tbody></table> L&amp;T also said that the sale of its 1,400 MW Nabha power plant in Punjab might not take place this financial year. Raman said that running thermal power plants is not the ‘flavour of the season’. “Investors in the market are looking for broken power plants and Nabha is a well-running unit but it’s not causing any stress,” he said, answering questions on its divestments. The engineering and construction behemoth sees inflation and certain global headwinds impacting the country’s growth trajectory. “High inflation, coupled with threat of an adverse BoP amidst the increasing uncertain global economic environment are possible headwinds to the country’s growth trajectory. Large value private sector investments that was set for a major revival may get delayed due to the persisting geopolitical and global economic turbulence,” said the company in a release. L&amp;T believes the government may intensify its efforts on structural reforms in critical areas such as labour, logistics, health and education. “On the global front, the economic outlook is clouded by key downside risks, viz., the conflict in eastern Europe impacting food and energy supply chains, gradual polarization and possibility of stagflation resulting from supply-led inflation in an uncertain demand environment,” said L&amp;T.

L&T’s Q2 net profit grows 23% to ₹2,229 cr, margins soften on input cost pressures

<keyword id="19896016" type="General" weightage="20" keywordseo="new-delhi" source="keywords">New Delhi</keyword>, <keyword id="19916864" type="General" weightage="20" keywordseo="infrastructure" source="keywords">Infrastructure</keyword> major <keyword id="19975888" type="General" weightage="20" keywordseo="larsen-toubro" source="keywords">Larsen &amp; Toubro</keyword> (<keyword id="19963313" type="General" weightage="20" keywordseo="lt" source="keywords">L&amp;T</keyword>) on Tuesday posted a 15 per cent rise in its consolidated profit after tax at Rs 2,947 crore in the December quarter. The company had posted a consolidated profit after tax (PAT) of Rs 2,552.92 crore in the year-ago period. The consolidated income of the company in the October-December period grew to Rs 55,965.57 crore from Rs 47,144.75 crore in the year-ago period, according to a regulatory filing. "We have registered yet another quarter of strong performance, despite the headwinds from a volatile global environment and consequent supply chain constraints. "Our nine-month order inflow has crossed the FY23 level. This is a testament to our wide capability spectrum, diversified presence, financial strength and most importantly the faith reposed in us by our customers," L&amp;T Chairman and Managing Director <keyword id="20284685" type="General" weightage="20" keywordseo="s-n-subrahmanyan" source="keywords">S N Subrahmanyan</keyword> said in a statement.

L&T profit after tax grows 15% to Rs 2,947 cr in December quarter

<ul><li><keyword id="6354919" type="General" weightage="20" keywordseo="LT" source="Orion">L&amp;T</keyword>’s board approved a buyback at a maximum price of ₹3,000 per share for an aggregate consideration of up to ₹10,000 crore.</li><li>Special dividend was announced to mark the end of A M Naik’s tenure with the company. </li><li>Stress in core segment margins will continue for next two quarters as it carries post-Covid, post-war overhang. </li><li></li></ul>Infrastructure major <keyword id="45475" type="General" weightage="20" keywordseo="Larsen-Toubro" source="Orion">Larsen &amp; Toubro</keyword>’s (L&amp;T) Q1 consolidated net profit went up by 46% to ₹2,493 crore, from ₹1,702 crore in the same quarter last year. It also said the board of directors approved a share buyback at the maximum price of ₹3,000 each for an aggregate consideration of up to ₹10,000 crore. The proposal is subject to the approval of shareholders. The board also approved a special dividend of ₹6 per equity share to mark the end of chairman A M Naik’s extraordinary tenure with the company, said R Shankar Raman, L&amp;T's CFO said in an earnings conference call. Naik will retire as the non-executive chairman of the company in September this year, after which the current CEO &amp; MD S N Subrahmanyan will take over as its executive chairman and MD. Revenue guidance unchanged L&amp;T’s consolidated revenues went up 34% to ₹47,882 crore for the quarter, from 35,853 crore in Q1 of FY23. The company said that it was primarily aided by the execution of a healthy order book in its projects and manufacturing portfolio. However, Raman refused to change the goalpost of the revenue guidance of 12-15% given for FY24. “If all goes well, we will be at the upper end of the guidance,” he said. The company received orders worth ₹65,520 crore at the group level during the quarter, registering a y-o-y growth of 57%. International orders at ₹27,646 crore during the quarter comprised 42% of the total order inflow. The company said that orders were received across diverse segments like rail, renewables, rural water supply, transmission &amp; distribution, IT &amp; office space and onshore and offshore verticals of the hydrocarbon business, during the quarter. The consolidated order book of the group is at ₹4,12,648 crore as on June 30, 2023, with international orders having a share of 29%. “Capex buoyancy in India Gulf Cooperation Council is providing the much-needed tailwinds for growing our projects &amp; manufacturing portfolio, ably supported by the resilient performance of the services businesses,” said S N Subrahmanyan, CEO &amp; MD, Larsen &amp; Toubro. Core segment margins to remain stressed in near term Its infrastructure segment saw order inflows of ₹40,051 crore, double what was recorded in the same quarter last year. The EBITDA margin of the segment during the quarter, however, reduced to 5.1% vis-à-vis 6.5% recorded in the corresponding quarter. The infrastructure business orders that were executed during the quarter were won in the second half of FY22 and FY23. The pricing of these orders factors in inflationary trends seen in the post-Covid, post-War period, Raman said explaining the margin squeeze seen in the segment during the quarter. He added that this segment’s margins will continue to be subdued for the next quarter or two. “Improvement in margin trajectory will be seen only in Q4. In fact 2024-25 will be a far healthier period,” Raman said. In its outlook, the company said that major economies are turning around the corner. Major oil producing nations continue to invest in oil &amp; gas, industrialisation and energy transition initiatives, which will augur well for the company’s projects business. L&amp;T said that in the backdrop of this mixed sentiment, its focus will remain on cash generation and judicious capital allocation. “The company has a robust order prospects pipeline in the medium term and is confident of sustaining its growth momentum by utilising the emerging opportunities, with an overarching aim of improving shareholder value on a sustainable basis,” it said in a press release.

L&T’s Q1 net profit jumps 46%; board approves ₹10,000 crore share buyback

<ul><li><keyword id="6354919" type="General" weightage="20" keywordseo="LT" source="Orion">L&amp;T</keyword>’s Q4 consolidated net profit rose 10% YoY to ₹3,987 crore, as its revenues grew 10.4% YoY to ₹58,335 crore. </li><li>L&amp;T’s top and bottom line both missed analyst expectations, and its order inflows grew 3% YoY due to a slowdown in infrastructure business. </li><li>In FY24, the company says it expects its order book to grow between 10-12%, while the topline is expected to grow between 12-15%. </li><li><keyword id="173852" type="General" weightage="20" keywordseo="AM-Naik" source="Orion">AM Naik</keyword> will step down as the company’s chairman on September 30, and SN Subrahmanyan will become the CMD. </li></ul>Construction and engineering behemoth Larsen &amp; Toubro (L&amp;T) on Wednesday reported a consolidated net profit of ₹3,987 crore in Q4, rising 10% over the same quarter last year. Its net profit missed analyst<a href="https://m.economictimes.com/markets/stocks/earnings/lt-q4-results-preview-heres-what-to-expect-from-indias-largest-infrastructure-company/videoshow/100106675.cms"> estimates</a> of ₹4,339 crore. Its revenue for the quarter rose 10.4% YoY to ₹58,335 crore, once again lower than analyst estimates of ₹59,256 crore. For the full FY23, L&amp;T’s net profit came in at ₹10,471 crore, registering a growth of 21%, while its revenue grew 17% to ₹1.83 lakh crore. The company said that its performance was boosted by strong execution of infrastructure projects as well as robust momentum in the information technology and technology services segment. International revenues constituted 39% of the company’s topline during the quarter, increasing from 33% a year ago. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) margin also expanded to 12.3% in Q4 from 11.7% a year ago. For the full year of FY23, L&amp;T’s EBITDA margins shrunk to 11.3% from 11.6% in FY22. The company’s chief financial officer R Shankar Raman blamed it on elevated input materials inflation. “We did an internal assessment and with the way projects are lined up, we expect a 10-12% improvement in the order book in FY24, while revenue growth is expected to be between 12-15%,” Raman said during a post-earnings call, adding that the upcoming general elections in 2024 could have an impact on its orders. The company declared a final dividend of ₹24. It also announced that AM Naik will step down as the company’s chairman on September 30, and SN Subrahmanyan will be the chairman and managing director. <cmsannotation type="cmsannotation" annotationid="L&amp;T is banking on improved tax collections to support its capex-led growth" comment="subhead" text="L&amp;T is banking on improved tax collections to support its capex-led growth">L&amp;T is banking on improved tax collections to support its capex-led growth</cmsannotation> Despite Q4 being a traditionally strong quarter, L&amp;T reported only a marginal uptick of 3% YoY in its order inflows during Q4 – at the group level, the conglomerate received orders worth ₹76,099 crore, of which international orders constituted 47%, or ₹36,046 crore. “Going forward, improved tax collections for the government will support its capex led growth aspiration,” the company said. The company’s consolidated order book stood at ₹3.99 lakh crore at the end of Q4, with the share of international orders at 28%. “While the impact [of global crises] appears to have been contained, these uncertainties continue to undermine the confidence among consumers and businesses to spend, thereby impacting global growth,” L&amp;T said. Unlike in Q3 when L&amp;T sounded optimistic about the growth outlook, it struck a note of cautious optimism this time around. “In this backdrop, the company will focus with cautious optimism on large project wins, timely execution of its large order book, growth of its services portfolio in the stated glide path and preservation of liquidity and optimum use of capital and other resources,” it said. <cmsannotation type="cmsannotation" annotationid="Infrastructure segment sees a slowdown" comment="subhead" text="Infrastructure segment sees a slowdown">Infrastructure segment sees a slowdown</cmsannotation> Infrastructure segment contributed to over half of its order inflows in Q4, at ₹41,187 crore. But the order inflows also registered a decline of 9% when compared to the same period last year. Added to that, the EBITDA margins of the infrastructure segment contracted to 7% in Q4 from 8.2% in the same period last year. Raman maintained that the softness in this segment’s margins is due to the inflationary pressures, but noted that much of the contracts of the company have cost variation clauses built-in, which should help it relieve the inflationary pressures to an extent. On the other hand, the IT &amp; technology services segment reported a growth of 21% YoY to ₹10,645 crore. However, EBITDA margins contracted considerably here too, to 20.7% in Q4, compared to 23.3% a year ago. “The segment margin was impacted mainly due to one-time merger integration expenses in LTIMindtree and elevated employee costs,” the company said, explaining the sharp decline in this segment’s margin during the quarter, noting that 93% of the segment revenue was from international markets. L&amp;T’s energy projects segment registered a growth of 17% YoY to ₹8,892 crore during Q4 thanks to multiple international orders in the hydrocarbon business. L&amp;T’s Q4 and FY23 in numbers: <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY22 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,83,341 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,56,521 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹58,335 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹52,851 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,471 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹8,669 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,987 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,620 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net margin </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.8% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.8% </td></tr></tbody></table> Source: Company reports SEE ALSO: <a href="https://www.businessinsider.in/investment/news/investment-supertrends-2023-ai-to-digitalisation-and-green-energy/articleshow/100126382.cms">AI to digitalisation and green energy: Supertrends defining investment for today and the future</a> <a href="https://www.businessinsider.in/stock-market/news/paytm-brokerages-looking-up-to-59-growth-in-one97-communications/articleshow/100070477.cms">Paytm shares surge 5% on sustained Q4 growth, brokerages see up to 59% upside</a> <a href="https://www.businessinsider.in/business/corporates/news/britannias-q4-net-profit-rises-47-yoy-to-559-crore-on-softer-input-costs/articleshow/100017366.cms">Britannia’s Q4 net profit rises 47% YoY to ₹559 crore on softer input costs</a>

L&T Q4 net profit rises 10% to ₹3,987 crore, cautiously optimistic about FY24

<ul><li>Construction and engineering behemoth <keyword id="6354919" type="General" weightage="20" keywordseo="LT" source="Orion">L&amp;T</keyword> on Monday reported a consolidated net profit of ₹2,553 crore for the December quarter. </li><li>Its revenue grew 17% YoY to ₹46,390 crore during the quarter, driven by an improvement in the execution of infrastructure projects. </li><li>The company said it remains optimistic about growth prospects on the back of an expected revival in India Inc’s capex cycle.</li><li>The company’s CFO R Shankar Raman is optimistic about exceeding the order inflow guidance of 12-15% for full FY23. </li></ul>Construction and engineering behemoth Larsen &amp; Toubro (L&amp;T) on Monday reported a consolidated net profit of ₹2,553 crore for the third quarter, rising 24% over last year, boosted by infra projects and IT &amp; technology services segment. The company said it remains optimistic about exceeding its order inflow guidance for FY23. The company said it gained from an improvement in the execution of infrastructure projects as well as continued momentum in the information technology and technology services segment. Its revenue for the quarter rose 17% YoY to ₹46,390 crore. International revenues remained consistent and constituted 37% of the company’s topline. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) margin contracted slightly during the quarter – L&amp;T reported EBITDA margins of 10.92% in Q3, down from 11.4% a year ago. While Q4 is a traditionally strong quarter for L&amp;T, the company’s chief financial officer, R Shankar Raman was optimistic about exceeding the order inflow guidance of 12-15% for FY23 . “All that I can mention is we will exceed the order guidance that we have given, but by how much, I don’t know. That would be speculative, but there is no concern.” <cmsannotation type="cmsannotation" annotationid="‘Major private capex investments are likely’" comment="subhead" text="‘Major private capex investments are likely’">‘Major private capex investments are likely’</cmsannotation> L&amp;T reported a 21% YoY growth in its order inflows – at the group level, the conglomerate received orders worth ₹60,710 crore, of which international orders constituted 25%, or ₹15,294 crore. "This growth [in order inflows] was largely driven by an uptick in the orders from the domestic markets. Traditionally, Q4 is a big quarter for us for new projects, and we hope that trend continues," Raman said. The company’s consolidated order book stood at ₹3.87 lakh crore at the end of Q3, with the share of international orders at 26%. “Bulk of the order book that we have are in areas where there has been a significant attention paid for completing the projects and that augurs well for the revenue visibility of the company,” Raman said during the post-earnings call, projecting optimism about the company’s topline prospects. L&amp;T is banking on the<a href="https://www.businessinsider.in/stock-market/news/from-sbi-to-icici-indian-banks-are-entering-an-earnings-upgrade-cycle-says-morgan-stanley/articleshow/94049013.cms"> revival</a> of India Inc’s capital expenditure cycle – earlier, a report by the Reserve Bank of India underlined that the various initiatives of the government and<a href="https://www.businessinsider.in/stock-market/news/capital-intensive-cyclical-and-value-stocks-to-continue-their-outperformance/articleshow/95659482.cms"> improved corporate balance sheets</a> are expected to revive the capex upcycle. “Major private capex investments are likely in energy transformation, emerging tech, healthcare, logistics, industrial parks, data centres etc., which augurs well for the EPC and construction business,” L&amp;T said, expressing optimism about its growth outlook. <cmsannotation type="cmsannotation" annotationid="Infrastructure and IT segments drive growth in order inflows" comment="subhead" text="Infrastructure and IT segments drive growth in order inflows">Infrastructure and IT segments drive growth in order inflows</cmsannotation> The stars of L&amp;T’s Q3 were the infrastructure and IT segments – over half the order inflows during the quarter were in the infrastructure segment, at ₹32,530 crore, recording a growth of 28%. The EBITDA margins of the infrastructure segment contracted to 7% in Q3 from 7.1% in the same period last year. Raman said the softness in this segment’s margins is due to the inflationary pressures, but noted that much of the contracts of the company have cost variation clauses built-in, which should help it relieve the inflationary pressures to an extent. On the other hand, the IT &amp; technology services segment reported a growth of 25% YoY to ₹10,517 crore. However, EBITDA margins contracted considerably – to 19.2% in Q3, compared to 23.6% a year ago. “The segment margin was impacted mainly due to one-time merger integration expenses in LTIMindtree,” the company said, explaining the sharp decline in this segment’s margin during the quarter, noting that 93% of the segment revenue was from international markets. L&amp;T’s energy projects segment registered a growth of 12% YoY to ₹9,051 crore during Q3, primarily on account of a large domestic order in the hydrocarbon business. L&amp;T managed to reduce its net working capital during the December quarter, allowing it to deliver a better return on equity to its shareholders. Its net working capital stood at 19% in the December quarter, down from 22.9% a year ago. “Considering the scale and complexity of the organisations and businesses L&amp;T runs, this is a significant reduction in the resource deployment of the company,” said Raman. L&amp;T’s Q3 in numbers: <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY23 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q2 FY23 </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 FY22 </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹46,390 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹42,763 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹39,563 crore </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,553 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,229 crore </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,055 crore </td></tr><tr><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net margin </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.5% </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.2% </td><td style="border-left:solid #000000 0.6000000000000001pt;border-right:solid #000000 0.6000000000000001pt;border-bottom:solid #000000 0.6000000000000001pt;border-top:solid #000000 0.6000000000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.2% </td></tr></tbody></table> Source: Company reports SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-group-stocks-witness-high-volatility-amidst-war-of-words-between-the-company-and-hindenburg-research/articleshow/97437171.cms">Adani Group stocks witness high volatility amidst war of words between the company and Hindenburg Research</a> <a href="https://www.businessinsider.in/stock-market/news/adani-group-companies-lose-3-22-lakh-crore-in-market-value-amidst-tussle-with-hindenburg-research/articleshow/97374612.cms">Adani Group companies lose ₹3.22 lakh crore in market value amidst tussle with Hindenburg Research</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-20000-crore-fpo-now-open-analysts-maintain-cautious-optimism/articleshow/97369358.cms">Adani Enterprises’ ₹20,000 crore FPO now open, analysts maintain cautious optimism</a>

L&T reports ₹2,553 crore Q3 net profit, sees boost from major private capex investments

<ul><li>R Shankar Raman, the CFO of the company said that they will vie to achieve 15% growth in revenues for FY23 as guided at the start of the year.</li><li>L&amp;T, which gets around 80% of its orders from the government, hopes that private sector capex will pick up this year.</li><li>It expects to complete the sale of eight road projects in its portfolio by the end of March.</li></ul>Infrastructure major Larsen and Toubro today reported a 45% growth in net profit to ₹1,702 crore in the first quarter of 2022-23 from ₹1,174 crore in the comparable quarter last year – in spite of it being a seasonally weak quarter. Its revenues too moved up by 22%, however, the company is not revising its revenue forecast for the year from 12-15% given earlier. “We are relieved,” said R Shankar Raman, the CFO of the company in an earnings concall on the first quarter performance, and also assured that they will try to shoot for the upper end of the band they guided, but refuse to go any further due to domestic and international events. “There could be monkeypox or any other Black Swan incident and we do not know what shape it will come in. There are too many moving pieces to be able to predict but if the commodity prices remain soft some of the effects of the macroeconomic situation might be reversed,” said Raman. As much as 37% of L&amp;T’s revenues came from international markets, however, they said they have hedged to the extent of 70% on their receivables. “We are hedged to the extent of 70% but I would like to believe that the rupee will be in a depreciating mode rather than appreciating. The markets that we export to may see some impact,” Raman said. The company did face execution headwinds during the quarter especially with its international orders like supply chain issues, procurement rescheduling due to high commodity costs, higher ancillary costs like power, freight, fuel and more. Its international business constitutes 37% of its total revenues. The company’s overall margins for the quarter stood at 18%, while its order inflows went up by 57% to ₹41,805 crore. While almost 80% of L&amp;T’s domestic orders are from the government, it expects private sector orders to pick up. These orders are expected to come from healthcare, data centers, e-commerce logistics and warehousing and even airport projects. “Depending on who throws their hat into the ring, L&amp;T might offer its engineering, procurement and construction capabilities,” said Raman. L&amp;T has been keen on exiting the infrastructure projects it owns. It expects to complete the sale of eight road projects in its portfolio by the end of March, the company said in the earnings concall. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q1FY22 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenues </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹35,853 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹29,334 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net Profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,702 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,174 crore </td></tr></tbody><tbody></tbody><tbody></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/rapido-ceo-unicorn-india-invest-in-windo-that-is-helping-small-businesses-take-their-business-online/articleshow/93139058.cms">Rapido CEO, Unicorn India Ventures invest in social commerce startup Windo</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/unclaimed-deposits-after-10-years-will-be-transferred-to-education-and-awareness-fund-as-per-rbi/articleshow/93137699.cms">RBI wants depositors to act on unclaimed deposits</a>

I'd like to believe Rupee will be in a depreciating mode rather than appreciating, says L&T CFO

<ul><li>While analysts remain positive about 2023, multiple factors including geopolitical tensions, rising Covid-19 cases in China, monetary policy actions could have an impact on markets.</li><li>Business Insider India has examined analyses of multiple brokerages to figure out stocks that are expected to shine in 2023.</li><li>Here are some of the stocks recommended by brokerages including ICICI Direct, HDFC Securities, Sharekhan, Motilal Oswal and Religare Broking to invest in next year. </li></ul>The year 2022 has been an eventful one, with multiple headwinds in the form of rising geopolitical tensions, continued supply chain constraints, boiling crude oil prices and elevated inflation that triggered interest rates hikes by central banks around the world, causing a turmoil in equity markets globally. As we step into 2023, equity markets could be <a href="https://www.businessinsider.in/stock-market/news/psus-stage-a-comeback-in-2022-and-the-future-looks-healthy-say-analysts/articleshow/96522444.cms">driven</a> by key sectors like banking, finance and insurance services (BFSI), IT and metals, say analysts. In 2022, the Indian equity market emerged as an outlier in a world where most markets delivered negative returns. Benchmark indices Sensex and the Nifty50 rose nearly 3% this year as domestic institutional investors stepped in to fill the gap left by foreign institutional investors (FIIs) during the year. In comparison, Asian and US markets registered a steep 10-30% fall in the year. “The relatively stable equity market in India was a result of a smart economic recovery from the pandemic shock and the growing dominance of retail investors,” said a report by Quantum Mutual Fund. In 2023, however, geopolitical tensions, rising Covid-19 cases, monetary policy actions, change in commodity prices including crude oil and India’s union budget are among factors that will impact the markets. Amid all these uncertainties, the key question is which stocks would be suitable to invest in this scenario? Business Insider India has examined analyses of multiple brokerages – including ICICI Direct, HDFC Securities, Sharekhan, Motilal Oswal and Religare Broking – to give you a list of stocks that are expected to shine in 2023. Here are the stocks recommended by brokerages for investment in 2023. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Companies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year-to-date change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Larsen &amp; Toubro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">State Bank of India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">28% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Maruti Suzuki </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">34% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Macrotech Developers </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-17% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">PI Industries </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14% </td></tr></tbody></table>Note: Change as on December 27, 2022 <keyword id="6354919" type="General" weightage="20" keywordseo="LT" source="Orion">L&amp;T</keyword> best placed to take advantage of a capex revival Infrastructure behemoth Larsen &amp; Toubro is amongst the top picks of brokerages as they believe the company is well poised to be the key beneficiary of a <a href="https://www.businessinsider.in/stock-market/news/capital-intensive-cyclical-and-value-stocks-to-continue-their-outperformance/articleshow/95659482.cms">capex upcycle</a> driven by investments in both public and private sectors. “With a pick-up in the capex cycle and diversified segmental exposure, we believe L&amp;T is the best capex play in the large cap capital goods segment. The company is optimistic about meeting its 15% growth guidance for revenue and order inflow in FY23,” said a report by ICICI Direct Research. Debt-free Maruti Suzuki another favourite of brokerages India’s largest carmaker Maruti Suzuki is another favourite of analysts considering it is debt free, pays consistent dividend, and has strong free cash flow and healthy financials. “Maruti is on a strong footing for a recovery in market share and margin with launches gaining traction and semiconductor shortages easing. It can gain further market share, led by an expected shift towards petrol and hybrid vehicles, resulting in ~14% volume CAGR over FY22-25E,” said a report by Motilal Oswal. In the next 2 years, the automaker intends to launch products in the utility vehicle segment, focus on premiumisation and revamp its existing product portfolio. SBI and Axis Bank among top BFSI picks State Bank of India and private lender Axis Bank are also among stocks that might do well next year. Analysts say SBI is one of the few large-cap stocks available at a reasonable valuation with high growth visibility led by strong retail loans and a pick up in the corporate segment. “Bank lending has been growing at double-digit rates as of this fiscal. Revival in consumer demand, rise in private capex followed by rise in government spending can be triggers for the growth. SBI, being a leader in the industry, could be a best play on this theme,” said analysts at HDFC Securities. Similarly, Axis Bank has also been witnessing strong growth in the retail and mid-corporate segment, which, along with micro, small and medium enterprises, would remain the key growth drivers for the bank, according to analysts at Motilal Oswal. PI Industries, Macrotech to shine The chemical manufacturer PI Industries is expected to maintain its growth momentum with better-than-expected sales growth and margin expansion. Macrotech Developers, which markets its properties under the Lodha brand, is expected to continue strong growth next year as well due to a strong pipeline, say analysts at Motilal Oswal. With the brand new year just around the corner, and several factors set to affect the markets, these commentaries from brokerages should make it easier to help build an equity portfolio in 2023. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/december-auto-sales-could-skid-sequentially-on-production-constraints-purchase-deferrals-due-to-inauspicious-period/articleshow/96617021.cms">December auto sales could skid sequentially on production constraints, purchase deferrals due to ‘inauspicious’ period</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/gautam-adani-man-of-the-year/articleshow/96610248.cms">Gautam Adani: Man of the year</a>

Stock picks for 2023: L&T, SBI, Axis Bank among top brokerage picks for the new year

Engineering and construction giant <keyword id="45475" type="COMPANY" weightage="20" keywordseo="Larsen-Toubro">Larsen &amp; Toubro</keyword> (<keyword id="6354919" type="COMPANY" weightage="20" keywordseo="LT">L&amp;T</keyword>) on Friday reported 11.3 per cent rise in consolidated net profit at Rs 3,820.16 crore for March quarter 2020-21 on the back of higher revenue from operations. The company had posted a net profit of Rs 3,430.10 crore in the year-ago period, L&amp;T said in a filing to BSE. These figures take into account tax and share in profit (loss) of joint ventures/associates from continuing operations before exceptional items, it said. Income of the company during January-March period increased to Rs 49,116.16 crore from Rs 44,905.76 crore in the year-ago period, the filing said. During a conference call, R Shankar Raman, Whole-time Director and Chief Financial Officer of L&amp;T said the company is happy to report very strong performance for March quarter. "As you will notice the company is reporting consistent improvement quarter-on-quarter right from the dismal quarter one that we reported last year. "Even though I realise that our business is not quarter-on-quarter business being a project company, it is very important that we measure the progress that we made in the very challenging environment and it helps a lot for our staff morale and motivation," he said. Stating that the first two quarters of 2020-21 were very challenging he said there was vast improvement in December and March quarters and it feels good to end the year on a very strong note. The company said in March quarter the "consolidated PAT at Rs 3,293 crore registered a Q-o-Q increase of 33 per cent and a Y-o-Y increase of three per cent over the profits for similar period last year." L&amp;T further said order inflow in January-March was at Rs 50,651 crore, lower by 12 per cent over corresponding period of the previous year with deferment of awards. Significant orders during the quarter were received in various segments like factories, hydel and tunnel, metros, special bridges, nuclear power, rural water, renewable energy, hydrocarbon offshore and minerals and metal sector. "International orders at Rs 18,439 crore during the quarter is at 36 per cent of the total order inflow, with receipt of biggest solar PV plant order and transmission line orders," it said. The consolidated order book of the group stood at Rs 3,27,354 crore as on March 31, 2021, registering a growth of eight per cent over the year-ago period. International orders constitute 21 per cent of the total order book. "With the pandemic playing out the way that we are anticipating, things will improve slowly from Q2 onwards....We could look forward to a growth environment where growth could range anywhere up to low to mid teen in terms of order flows and revenues. We all also expect the margin to remain stable around the current level," Raman said. "We are not hard coding the numbers on guidance but we are sharing our thinking the we are looking forward to growth over FY'21....The big assumption that we are making is that the second wave of COVID will leave us with no further damage in a month or two," he said. Larsen &amp; Toubro CEO &amp; MD S N Subrahmanyan said the company will continue to build and execute on its commitments amid the second wave of the pandemic in the country. "We will calibrate our growth in the immediate future based on the operating environment and conditions resulting from this. Performance in the challenging FY21 reaffirms our strong position, stability in our performance and our ability to deliver in line with our strategic priorities inspite of the fact that almost 6 months were lost. "There has been a positive Union Budget and there are more reasons to be optimistic that better days are coming. While some headwinds remain, we are well-positioned to meet the expectations of our customers and increase the value of our shareholders,'' he said. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/go-air-has-filed-for-a-3600-crore-ipo-at-a-very-desperate-time/articleshow/82626097.cms" data-type="tilCustomLink" target="_blank">Go Air has filed for a ₹3,600 crore IPO at a very desperate time</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/markets/news/heres-why-the-spike-in-inflation-in-the-us-may-worry-markets-in-india/articleshow/82597218.cms">Here's why the spike in inflation in the US may worry markets in India ⁠— but experts say don’t panic yet</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/apps/news/whatsapp-responds-to-privacy-criticism-by-alleging-other-apps-like-zomato-ola-aarogya-setu-zoom-google-and-other-apps/articleshow/82570897.cms">WhatsApp responds to privacy criticism by alleging that other apps and tech companies also show disdain for user privacy</a>

Larsen & Toubro sees a slowdown in new orders in the first three months of 2021 ⁠— management says contracts have been deferred

<ul><li>For the quarter ending June, L&amp;T’s infrastructure orders went down by 10%. </li><li>The new orders won during the quarter too were from Saudi Arabia and Sri Lanka. </li><li>“We will be lucky if we can maintain 6.5% growth,” A M<a href="https://www.news18.com/news/business/l-says-a-6-5-growth-will-be-lucky-2254855.html"> Naik, L&amp;T’s former chairman said</a>. </li></ul> Indian biggest infrastructure company Larsen &amp; Toubro is heading to greener pastures abroad as the home turf is getting tougher, and the local economy slower. The impact of the economic downturn hurting the company is visible in L&amp;T’s share price which is down over 11% in the last one month. For the quarter ending June, its infrastructure or construction orders went down by 10%. And, even among those that they won were overseas orders. “Order wins were mainly from the airport sector, gold beneficiation award in Saudi, water supply and distribution order in Sri Lanka, a notable desalination plant order in Gujarat and an order for a defence telecom network,” L&amp;T said in its earnings press release. As of now, international orders contributed to 23% of its total inflow for the quarter. This may only increase going forward. “Company will focus more on the international market to offset the muted demand from the domestic private sector investment,” ICICI Securities said. Yet, this a near-term strategy only. In the long-run, the company which has manufacturing facilities, construction capabilities and equipment all in place will have to bank on India growth story. Where is the growth? A M Naik, the former chairman of the company valued at ₹1.94 lakh crore; and an industry doyen broke his silence to criticise the government. Not only did he reject government’s claims that the country will grow at 7%, he also punched holes in the credibility of the numbers. “We will be lucky if we can maintain 6.5%,”<a href="https://www.news18.com/news/business/l-says-a-6-5-growth-will-be-lucky-2254855.html"> Naik said</a>. While he wasn’t talking specifically of L&amp;T, it is true that the 81-year-old company’s fate is largely linked to that of government. L&amp;T has been a part of every large infrastructure project in India right from the recent moon mission Chandrayaan-2 to large defence projects to nuclear power plants in addition to highways and others. However, the slowdown is too severe and it is taking a toll on the company’s prospects. “Domestic private sector demand is under stress and the overall environment is challenging. Management believes the government will face several challenges to keep up the pace of infrastructure development in the current environment,” said an analyst report by ICICI Securities, after the company’s annual general meeting. Lost opportunities Naik had hoped that India could gain from the trade war between US and China, but those manufacturing opportunities have been lost to Vietnam and Thailand, while L&amp;T itself lost the opportunity to gain from possible trade expansion. “We were too busy with elections,” Naik lamented. And, it is not like India has no infrastructure to build. It is still in want of good roads, airports, railway stations and much more. The country which is facing heavy water crisis in cities like Chennai, and subsequent threats in Hyderabad and others might boost this infrastructure, and that too an urgent basis. “Government’s renewed focus on clean drinking water to act as a catalyst for growth in the water and effluent treatment business and ‘Make in India’ programme in defence would augur well for large players like L&amp;T. Larsen has vast experience in execution and sail through any tough macro environment,” said a report by JM Financial. L&amp;T indeed could sail the rough weather, but it sure intends to make pit stops in other countries, picking up the business it lost due to the slowdown at home.

India’s biggest infrastructure company is looking overseas for orders because there are few at home

New Delhi, Jan 22 () Engineering and construction major Larsen &amp; Toubro (L&amp;T) on Wednesday posted a 15 per cent rise in its consolidated net profit at Rs 2,560.32 crore for the quarter to December 31, on the back of higher income.
 The company had clocked a consolidated net profit after tax and share in profit/(loss) of joint ventures/associates from continuing operations of Rs 2,218.68 crore in the year-ago period, the company said in a regulatory filing to the BSE.
Its consolidated total income during October-December increased to Rs 36,717.60 crore, against Rs 34,823.08 crore in the year-ago period, the filing said.
Total expenses also increased to Rs 33,494.37 crore during the quarter under review as against Rs 31,421.86 crore in the corresponding period of the previous fiscal.
"The company successfully won new orders worth Rs 41,579 crore at the group level during the quarter ended December 31, 2019, amid subdued business environment. International orders during the quarter at Rs 17,901 crore increased to 43 per cent of the total order inflow, on large value order wins in power transmission and distribution and metallurgical and material handling business," the company said in a statement. 
The consolidated order book of the group stood at Rs 3,06,280 crore as on December 31, 2019, registering a reasonably high growth of 5 per cent over March 2019. NAM MKJ

L&T Q3 consolidated net profit up 15% at Rs 2,560 crore

In the last fiscal, government orders drove majority of <keyword id="81793" type="COMPANY" weightage="100" keywordseo="Capital-goods">capital goods</keyword> and engineering companies, and looks like the trend is going to stay for this fiscal as well. A look at the order pipeline, and one can only see the names of state-funded schemes amidst a few private sector projects here and there. Companies like <keyword id="45475" type="CITY" weightage="100" keywordseo="Larsen-Toubro">Larsen &amp; Toubro</keyword>, <keyword id="148522" type="CITY" weightage="100" keywordseo="ABB">ABB</keyword> and <a href="http://www.businessinsider.in/finance/Siemens-is-buying-a-software-company-under-pressure-from-activists-for-about-4-billion/articleshow/55415431.cms">Siemens</a> are looking at more government projects than ever, given that private sector is still unsure about investments. Also read: <a href="http://www.businessinsider.in/small-business/people/indias-manufacturing-sales-shrink-expect-more-layoffs/articleshow/57376642.cms">India's manufacturing sales shrink. Expect more layoffs India's manufacturing sales shrink. Expect more layoffs</a> "Order flows continue to be dominated by public sector capex, led by sectors like power transmission &amp; distribution, <a href="http://www.businessinsider.in/transportation/indian-railways-is-not-in-the-pink-of-health-turnaround-hits-buffers/articleshow/58411600.cms">railways</a>, metros and hydrocarbons," <keyword id="103838" type="CITY" weightage="100" keywordseo="HDFC-Securities">HDFC Securities</keyword> said in a pre-earnings report. "Orders from Power Grid grew 112% year-on-year to Rs 8,020 crore in Q4 FY17. Power generation orders continued to be muted, with no major orders announced by <keyword id="6354446" type="CITY" weightage="100" keywordseo="BHEL">BHEL</keyword>." The worth of order inflows by major capital goods companies, excluding <a href="http://www.businessinsider.in/lt-played-a-crucial-role-in-isros-record-104-satellites-launch-heres-how/articleshow/57189874.cms">L&amp;T</a>, declined one fifth to stand at Rs 16,500 crore in the fourth quarter from a year earlier, says Elara Capital. Amongst these orders, a large number were from railways, transmission &amp; distribution, renewables &amp; water treatment. Also read: <a href="http://www.businessinsider.in/careers/Worrisome-IITs-receive-lukewarm-response-from-PSUs-during-placements/articleshow/55432791.cms">Worrisome? IITs receive lukewarm response from PSUs during placements</a> "We expect that domestic capital goods sector would continue to be impacted primarily due to slower execution, lower order inflow and poor financial health of the power distribution companies. We believe announcement of Uday scheme for discoms is positive, which is likely to result in better cash flows and new investments in state T&amp;D networks and independent power producers," <keyword id="197560" type="COMPANY" weightage="100" keywordseo="Reliance-Securities">Reliance Securities</keyword> said. The Uday scheme has been announced to revive state-owned power distribution companies that are ridden with debts. (Image source LiveMint)

Government orders might continue saving capital goods companies

<ul><li>Defence, road and rail spending by the government is aiding growth in capital goods companies.</li><li>Due to the long-term nature of government spending, tendering momentum will go on till FY30, says Motilal Oswal Securities.</li><li>Wait for a good entry point in capital goods stocks, say analysts, as they have seen a good run in recent times.</li><li>Digital and green infrastructure-based ordering led by the private sector can also aid growth in a few players. </li></ul>India is building more roads, expanding railways and defence orders are trickling in. That’s good news for capital goods companies which also got another near-term boost in the form of lowered political risk; after the national ruling party BJP secured mandates in three states. According to Motilal Oswal Securities, with government spending on metros, water projects, transmission and more, the stage has been set for a ‘decadal growth opportunity’. Driven by long-term structural tailwinds, the sector is all set for a healthy revenue compounded annual growth rate (CAGR), it adds. The government has already spent 47% of what it budgeted for FY24, in the first half of the fiscal year. Private sector, which is spending less, is moving towards automation and green infrastructure, providing smaller but steady orders. In the second quarter, the manufacturing sector grew 13.9%, hitting a nine-quarter high – all indicating that good times are ahead of capital goods companies. The ‘expanding pie’ Government’s capex is projected to grow to ₹17 lakh crore in FY24 as compared to ₹13.5 lakh crore in FY23. With healthy tax collections, there are few doubts on the government’s ability to keep up the pace. “Government has outlined various capex plans for transmission, railways, highways, water, and defense indigenization as well as several PLI schemes. Though we believe that these targets are aggressive as compared to past runrates, even a 60-70% achievement ratio of the said targets can result in significant long-term opportunity for the sector,” says Motilal Oswal Securities. Most of the government’s spending plans are for the long-term too. And this will keep the tendering process busy till FY30, analysts expect. Companies too are all set to gain from the growth, by expanding capacities. “Demand-supply gaps, improved pricing and confidence over sustenance of capex momentum — all have triggered expansion in manufacturing capacities across companies; especially eyeing the latest revival seen in the power sector,” said a report by IIFL Securities. Wait for entry points say analysts Driven by robust order inflows, expanding margins due to lowered raw material cost, most companies in the sector gained significantly in the last few months, barring a few exceptions. That has altered the risk to reward profile of the sector. L&amp;T and <keyword id="6425802" type="General" weightage="80" keywordseo="bharat-electronics" source="Orion">Bharat Electronics</keyword> are IIFL’s preferred bets on the relative risk-reward trade-offs. Motilal Oswal also has a Buy recommendation on L&amp;T, ABB, Siemens, <keyword id="113731" type="General" weightage="50" keywordseo="cummins" source="Orion">Cummins</keyword>, and a ‘neutral’ stance on Bharat Electronics, Thermax and KEC. “We are positive on the business models of these companies but would look for better entry points owing to unfavorable risk reward at current valuations,” it adds. Cap goods stock movements <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30-day change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bharat Electronics </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Siemens </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ABB India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CG Power </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">24% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cummins </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">MTAR Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Netweb Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14.8% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ideaForge </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.6% </td></tr></tbody></table>Source: BSE The digital infra opportunity The size and scale of opportunities that will land in the kitty of companies are also different for companies in the sector. Infrastructure spending bodes well for companies like L&amp;T, Bharat Electronics, Siemens, Power Grid, Hitachi and more. Smaller and recently listed companies like <keyword id="19739527" type="General" weightage="20" keywordseo="ideaforge-mtar-technologies" source="Orion">Ideaforge, MTAR Technologies</keyword>, <keyword id="13433278" type="General" weightage="50" keywordseo="netweb-technologies" source="Orion">Netweb Technologies</keyword> and more can gain from PLI-led schemes. “We expect the uptick in capex to be driven by PLI-led schemes, data center and EV/EV charging-led infrastructure; increasing expenditure towards industrial automation and digitization, and sustainability-driven capex,” said Motilal Oswal. As more companies go towards digitization and the cloud, companies that provide HVAC and cooling systems are also expected to bring in orders for companies like Siemens, ABB to gain from the same. Such orders are also expected to come from the private sector whose capex spending has been sluggish and patchy this year. While there has been an uptick in sectors like cement, pharmaceuticals, chemicals, telecom, food &amp; beverages, and metals &amp; mining, most of the spending is veering towards sustainability. “We see select pockets where opex-led spend towards greener sources of energy and sustainability is happening. We expect the private capex cycle to take some more time to revive,” says Motilal Oswal. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/private-equity-vc-players-make-a-killing-as-ipo-rush-yields-them-10000-crore/articleshow/105649353.cms">Private equity &amp; VC players make a killing as IPO rush yields them ₹10,000 crore</a> <a href="https://www.businessinsider.in/stock-market/news/no-stopping-the-election-party-with-occasional-profit-booking-say-analysts/articleshow/105721549.cms">No stopping the election party with occasional profit-booking say analysts</a>

As road & rail projects gather steam, cap good companies set for a decadal growth opportunity

Mumbai, <keyword id="2870998" type="PERSON" weightage="20" keywordseo="Nifty-earnings">Nifty earnings</keyword> are likely to grow at a Compound Annual Growth Rate (CAGR) of 24.2 per cent over FY21-23, said an <keyword id="114298" type="COMPANY" weightage="20" keywordseo="ICICI-Direct">ICICI Direct</keyword> report. "Going forward, we expect <keyword id="6354813" type="COMPANY" weightage="20" keywordseo="Nifty">Nifty</keyword> earnings to grow at 24.2 per cent CAGR over FY21E-23E. Using a bottom up approach and giving discount to target weighted average PE, we now value the Nifty at 16,300 i.e. 22x P/E on FY23E EPS of ₹740 with corresponding <keyword id="6484188" type="PERSON" weightage="20" keywordseo="sensex">Sensex</keyword> target at 54,600," it said. It noted that corporate earnings gained momentum during the third quarter of FY21 as economic activity rebounded in the post-Covid unlocking era with optimism fuelled by the festive season. The <keyword id="10802130" type="UNKNOWN" weightage="20" keywordseo="q3fy21-earnings">Q3FY21 earnings</keyword> staged an impressive show and were broadly ahead of estimates as corporates continue to benefit from lower raw material costs and realised leaner cost structures, it said. At the index level, excluding the BFSI (banking and financial industries and insurance) space, in Q3FY21, net sales declined 2.5 per cent YoY, primarily driven by double digit topline decline in the oil and gas domain amid muted crude prices. Excluding oil and gas and banking space, Nifty topline posted growth of 10 per cent YoY. Auto sector results were robust nearly all across the board particularly in relation to margins, amid 10.5 per cent YoY growth in total sales volume at 72.8 lakh units, said the <keyword id="42456" type="DOMAIN" weightage="20" keywordseo="ICICI">ICICI</keyword> Direct report. In the capital goods domain, execution picked up pace sequentially with key highlight for the quarter being robust order inflows. In the FMCG space, strong growth momentum continued in Q3FY21 led by robust growth in rural regions supported by significant increase in government spends post pandemic, it added. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/nurecas-100-crore-ipo-heres-how-to-check-share-allotment-status/articleshow/81135236.cms">Nureca’s ₹100 crore IPO: Here’s how to check share allotment status</a> <a href="https://www.businessinsider.in/travel/article/exploring-the-unreal-beauty-of-the-andaman-islands/articleshow/81126293.cms">Exploring the unreal beauty of the Andaman Islands</a> <a href="https://www.businessinsider.in/stock-market/news/happiest-minds-is-leveraging-its-partnerships-with-big-players-like-google-microsoft-aws-salesforce/articleshow/81105035.cms">Happiest Minds is a smaller company that does the same thing as MindTree and L&amp;T Infotech — but clearly it is doing it a lot better</a> <a href="https://www.businessinsider.in/tech/news/india-may-require-twitter-facebook-and-others-to-remove-unlawful-content-within-36-hours/articleshow/81104740.cms">India may require Twitter, Facebook and others to remove unlawful content within 36 hours</a>

Nifty earnings may grow at 24% CAGR during FY21-23, says ICICI Direct report

New Delhi, May 19 () Life was limping back to normalcy in most parts of Delhi with easing of the coronavirus-triggered restrictions after nearly two months on Tuesday, as there was significant vehicular movement and resumption of economic activities in the city. Several markets in the national capital were buzzing with activity, but confusion prevailed over opening up of shops due to odd-even formula laid down by the Delhi government. All kinds of shops have been allowed to open. Delhi also witnessed 60 per cent spike in vehicle volume from the usual 12,000 -15,000 during the earlier phases of the lockdown, a senior traffic official said. Although metro services are yet to restart operations, public transport resumed with 2,000 buses as well as auto-rickshaws and taxis plying on the road, with a restricted number of passengers as per social distancing norms. The industries too resumed operations, but many complained of shortage of labour and disruption of the supply chain. The coronavirus death toll in Delhi has climbed to 166, while 500 fresh cases of COVID-19 infection reported on Tuesday, the highest single-day spike here, took the total in the city to 10,554, authorities said. The previous highest spike of 472 fresh cases was recorded on May 14. Delhi has been under lockdown since March 23, but the curbs were in place before that. On Monday, the Delhi government announced significant opening of economic activities in the city, including resuming of DTC operations. While popular markets like Connaught Place and Khan Market bore a deserted look, traders in markets like Tilak Nagar, Karol Bagh and Sarojini Nagar were seen cleaning their shops. Connaught Place, which is the commercial hub in central Delhi, saw traders marking circles to ensure that visitors can ensure social distancing. At Karol Bagh in central Delhi, Gaffar mobile market started functioning on an odd-even basis. Odd numbered shops remained open and many shopkeepers were busy setting their shop in order. Hawkers who do repair works and odd jobs like replacing tempered glass on mobiles in the market were not to be seen. However, a large number of people had gathered in the market to get repair work done. Market association and representatives police kept urging people to ensure social distancing. In its guidelines issued on Monday, the Delhi government permitted opening of markets on an odd-even basis. However, on ground there was disappointment as well as confusion over the opening of shops on an odd-even basis. In a letter to Delhi Chief Minister Arvind Kejriwal and Lt Governor Anil Baijal, the Confederation of All India Traders (CAIT) urged them to reconsider the odd-even formula for opening of shops, observing that only five lakh shops could open in the city owing to the arrangement. Khan Market traders said the odd-even rule cannot be effectively implemented in the market and they are figuring out the modalities as some stores opened in the posh market. "We are a different market. Our shops are not even numbered in a way that we can implement the odd-even formula. And are the visitors going to visit the stores keeping the shop number and odd and even date in mind? There was absolutely nil business today. "At least retail markets like ours, which are set up in a way that social distancing measures can easily be implemented, should be allowed to open completely," Sanjeev Mehra, President, Khan Market Traders Association said. The shopkeepers also complained that customer inflow was minimal. Pravin Verma of Verma Jewellers at the Laxmi Nagar market, said, "Everybody is concerned about customers. The situation is bad. It was not good earlier as well but coronavirus and lockdown have hit everybody hard and people are buying only essential items these days. Jewellery would be the last item on their mind." After a lull of over two months, there were traffic snarls on the roads. According to traffic officials, apart from border areas, jams were also witnessed at ITO, Yamuna Bridge and Sarai Kale Khan. Snarls were also reported at Barapulla flyover. The strict checking by the Uttar Pradesh police at the border was cited as a major reason for heavy traffic at Noida-DND flyover and other bordering areas. A senior traffic police official said heavy traffic was reported at the DND flyover as several vehicles queued up to enter Noida. Taking to Twitter, Delhi Traffic Police alerted commuters travelling to Noida to plan their trip only if their vehicles have movement passes issued by authorities concerned. The situation was no different even on the Delhi-Gurgaon border. Transport minister Kailash Gahlot said the number of buses will increase in the days to come when more and more drivers, who reside in the neighbouring states, report for work. The department is taking all the necessary precautions with resumption of public transport and urged people to wear masks and ensure social distancing, he said. "Thermal scanning has been started at some terminals and bus stands. We will ensure it at all the busy bus stands. The government under leadership of Arvind Kejriwal is taking all the necessary steps," he tweeted. Gahlot said more than 2,000 buses were on the roads on Tuesday. Additionally, around 1,400 buses were kept at the disposal of Revenue and Police departments for movement of migrants to railway station and for law and order duties respectively, he said. VIT GJS SLB AMP NIT KND PR KJ KJ

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