L&T Q1 Preview: Strong execution to aid revenue growth, all eyes on buyback announcement

Macquarie further expects the margin improvement story to play out in the second half of the current financial year.

Excluding the bullet train order, L&T has declared orders worth nearly Rs 14,200 crore to the exchanges during the June quarter. The order inflows were driven by international transmission, hydrocarbons and domestic real estate.

Macquarie is baking in core orders worth Rs 28,100 crore during the June quarter, with total order inflow seen at Rs 43,800 crore. Order inflow during the March quarter stood at Rs 77,000 crore.

Prospect base and large projects in the pipeline for financial year 2024.

Any change in financial year 2024 core margin estimate. The company has guided for core EBITDA margin guidance of 9 percent for the current financial year.

Ability to maintain working capital level and updates on new initiatives.

For the current financial year, the company has given an order inflow growth guidance of 10-12 percent and revenue growth guidance of 12-15 percent.

Along with the results, all eyes are also on the company's potential share buyback and special dividend announcement, which will also be considered in Tuesday's board meeting.

The board had earlier approved a Rs 9,000 crore share buyback in 2018, but the proposal was rejected by market regulator SEBI.

"Since the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back (assuming full acceptance) would be more than twice the paid-up capital and free reserves of the company based on consolidated financial statements", the buyback offer is not in compliance with the Companies Act and Sebi norms, the regulator had said in a letter to the company back then.

Shares of Larsen & Toubro have gained nearly 25 percent so far this year and are among the best performers on the Nifty 50 index.