L&T Q1 preview: Analysts see up to 85% YoY PAT dip on Covid-19 disruption
The April-June quarter of the fiscal year 2020-21 (Q1FY21) is likely to be one of the weakest quarters for the Engineering & Capital Goods (ECG) companies as the Covid-19-induced lockdown triggered demand and supply disruptions, contract labour shortage and paucity of liquidity, that stalled project execution. Order inflows during the period, analysts say, were impacted by a delay in tendering/awarding projects while crude oil price crash would have impacted orders in hydrocarbon space of the companies.
Given this backdrop, the engineering and construction major, Larsen & Toubro (L&T), is also expected to report a dismal performance for the quarter ended June 2020 when it announces its numbers on Wednesday, July 22. However, the company’s services and exports businesses are expected to cushion the overall revenue decline.
