L&T Q4 order growth to be driven by base infra projects

By: | Published: March 9, 2017 4:24 AM

Large orders in defense, infrastructure, hydrocarbons are likely to slip to FY18. This, however, was factored in order inflow growth guidance cut (to +10% for FY17 v/s +15% earlier) in Q3FY17.

The company is on track to its meet order inflow growth guidance of 10% to R1.5 lakh crore for FY17 . (Reuters)

Large orders in defense, infrastructure, hydrocarbons are likely to slip to FY18. This, however, was factored in order inflow growth guidance cut (to +10% for FY17 v/s +15% earlier) in Q3FY17.

The company is on track to its meet order inflow growth guidance of 10% to R1.5 lakh crore for FY17. Order growth in Q4FY17 would be largely driven by base orders in infrastructure, which includes water, T&D and transport infrastructure.

It booked order for NLC Ghatampur (R20 billion and sees a robust pipeline of ~8GW in FY18. However, after being strong in FY15 (R150 billion), power inflows stood at ~R30-40 billion in FY16/FY17.

This would impact revenues in FY18-19 unless inflows pick up meaningfully.

It won R67 billion Saudi Aramco orders in Q2of FY17; another large $ 1 billion refinery order for Saudi Aramco was lost to Technicas.

Domestic execution is expected to pick up from FY18. Overseas execution is on track (+16% y-o-y in 9MFY17) for large metros (Doha, Qatar) and road projects.

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