A Reuters poll of analyst estimates forecast net profit to decline 9.4 percent to Rs 2,994 crore.
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Larsen & Toubro (L&T), India's largest engineering and construction firm is likely to see net profit decline by 9.4 percent in March quarter of FY18, even as order inflow and execution picks up.
A Reuters poll of analyst estimates net profit to drop to Rs 2,994.4 crore as compared to the fourth quarter of FY17, when the company posted a profit of Rs 3,305.6 crore.
The poll estimates revenue to increase 11.6 percent YoY to Rs 41,104 crore in Q4FY18.
Last year in November, the company revised its order inflow growth forecast from the initial range of 12 to 14 percent for the financial year to somewhat flat, because of the weak inflow in the first two quarters.
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L&T will announce results for the March quarter and the full financial year 2017-18 on May 28.
“Larsen & Toubro (LT) is on track to meet its guidance of zero-to-marginal growth in FY18 orders,” said Motilal Oswal in its research report.Motial Oswal expects the order flow at Rs 46,200 crore, flat as compared to Q4 FY18.
The brokerage firm said, domestic engineering and construction execution is expected to improve as GST transition related hurdles subside.
“We expect execution momentum to remain strong in 4QFY18, with E&C revenue growth of 12 percent supported by pickup in domestic project execution. For FY18, we expect revenue growth of 9 percent (10-12% guidance), driven by a revival in execution of large domestic orders that L&T has bagged over the past two years,” the report said.
Shares of L&T rose 2.21 percent to 1373.50 on the BSE at 2.30 pm on May 28.