Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q1 FY23 Earnings Presentation
28 slides from Larsen & Toubro's earnings presentation, Jul 26, 2022
Slide 1: Exchange filing cover letter: Analyst Presentation Q1 FY23
9 LARSEN & TOUBRO Larsen & Toubro limited Secretarial Department L& T House, Ballard Estate Narottam Morarjee Marg Mumbai - 400 001, /NOIA Tel .. +91 22 6752 5656 Fax: +91 22 6752 5858 www. Larsen toubro. com SEC/PAM/2022 July 26 , 2022 BSE Limited National Stock Exchange of India Limited Phiroze Je
Slide 2: Analyst Presentation Q1 FY23
LARSEN & TOUBRO Analyst Presentation Q1 FY23 July 26th, 2022
Slide 3: Disclaimer
Disclaimer This presentation contains certain forward retain highly skilled professionals, time and looking statements concerning L&T’s future cost over runs on contracts, our ability to business prospects and business profitability, manage our international operations, which are subject to a number
Slide 4: Key Highlights
Key Highlights Mumbai Coastal Road Project EPC Projects Hi-Tech Manufacturing Services
Slide 5: Order inflows, revenue, margin and leverage highlights
Order Inflows Performance improvement in a seasonally soft quarter Strong momentum in Projects & Manufacturing portfolio NWC Maintained despite seasonal softness Prospects bright Leverage Stable Gross & Net Debt levels at Group Revenue Improved execution in Infra & ITTS Margin Function of activity l
Slide 6: Key Financial Indicators
Key Financial Indicators (Rs. bn) Q1 FY22 Particulars Q1 FY23 (y-o-y) 266 Order Inflow 418 57% 3237 Order Book 3634 12% 293 Revenue 359 22% 10.8% EBITDA (%) 11.0% 11.7 Operational PAT 17.0 45% 11.7 Overall PAT 17.0 45% 22.9% Net Working Capital 20.9% 17.2%* RONW (TTM) 11.5% *Includes gain on divestm
Slide 7: Group Performance
Group Performance Onshore project in Algeria EPC Projects Hi-Tech Manufacturing Services 6
Slide 8: Q1 FY23 Order Inflow/Order Book
Q1 FY23 Order Inflow/Order Book (Amount in Rs. bn) Order Inflow Order Book 57% 12% 663 1008 Q1 FY22 Q1 FY23 240 178 418 3237 3634 2574 2626 176 90 266 Q1 FY22 Q1 FY23 Domestic International • Q1 Order Inflows from Infrastructure, Hydrocarbon & Defence; increased share of international orders • Pick
Slide 9: Group Performance – Sales & Costs
Group Performance – Sales & Costs Remarks Rs. Billion Q1 FY22 Q1 FY23 % Var • Infrastructure and IT&TS businesses drive revenue growth Revenue 293.4 358.5 22% • MCO expense variation is reflective of activity levels, revenue mix and input International Rev. 38% 37% costs MCO Exp.* 154.8 195.2 26% •
Slide 10: Group Performance – Profit Parameters
Group Performance – Profit Parameters Remarks Rs. Billion Q1 FY22 Q1 FY23 % Var • Finance cost commensurate with level of EBITDA 31.7 39.6 25% borrowing at parent, Metro refinancing aids Fin. Cost (8.3) (7.6) -9% improvement Depreciation (7.2) (9.6) 34% • Other income reflective of level of treasury
Slide 11: Segment Performance Analysis
Segment Performance Analysis Nuapada Water Supply Project, Odisha EPC Projects Hi-Tech Manufacturing Services 10
Slide 12: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects Buildings & Factories Hydrocarbon Buildings LTI + Mindtree & Factories Buildings Realty & Factories Buildings & Factories LTTS Smart World & Power Communications Heavy Civil Platforms Digital Platforms Green EPC Industrial Ma
Slide 13: Order Inflow Composition – Q1 FY23
Order Inflow Composition – Q1 FY23 Segment Geography Middle East, 21% Others, 5% HE 1.6% Hi-Tech Defence 6.7% Manufacturing, 8% Services, 33% USA & Europe, Hydrocarbon 10.0% Energy, 10% 20% Power 0.4% ROW, 2% Infrastructure, Domestic, 57% 44% Order Inflow Rs. 418 Bn EPC Projects Hi-Tech Manufacturin
Slide 14: Order Book Composition as on 30-Jun-22
Order Book Composition as on 30-Jun-22 Segment Geography Infrastructure, 73% Middle East, 22% Hydrocarbon 15.8% Energy, 18% Power 2.2% USA & Europe, 0.4% HE 1.3% Hi-Tech ROW, 5% Manufacturing, 5% Defence 4.0% Domestic, 72% Others, 4% Order Book Rs. 3634 Bn EPC Projects Hi-Tech Manufacturing Services
Slide 15: Revenue Composition – Q1 FY23
Revenue Composition – Q1 FY23 Segment Geography Middle East, 9% Others, 4% HE 1.6% Hi-Tech Defence 1.9% Manufacturing, 4% Services, 38% USA & Europe, 23% Hydrocarbon 11.3% Energy, 14% Power 2.8% ROW, 5% Domestic, 63% Infrastructure, 40% Revenue Rs. 359 Bn EPC Projects Hi-Tech Manufacturing Services
Slide 16: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in Rs. bn) Net Revenue 36% 104.1 141.8 Q1 FY22 Q1 FY23 7.1% EBITDA Margin 6.5% Domestic International • Order inflows pick up in Q1, renewed traction in international orders • Strong prospect pipeline • Robust execution growth • Input cost headwinds impact mar
Slide 17: Energy Projects Segment
Energy Projects Segment (Amount in Rs. bn) Net Revenue 3% Rs. bn Q1 FY22 Q1 FY23 % Var 49.5 50.7 Revenue 49.5 50.7 3% Hydrocarbon 41.9 40.6 (-3%) Power 7.6 10.1 33% EBITDA Hydrocarbon 8.4% 10.0% 160 bps Power 2.5% 3.3% 80 bps Q1 FY22 Q1 FY23 7.5% EBITDA Margin 8.5% Domestic International • Receipt o
Slide 18: Hi-Tech Manufacturing Segment
Hi-Tech Manufacturing Segment (Amount in Rs. bn) Net Revenue 3% Rs. bn Q1 FY22 Q1 FY23 % Var 12.4 12.7 Revenue 12.4 12.7 3% Heavy Engineering 5.5 5.9 8% Defence Engineering 6.9 6.8 (1%) EBITDA Heavy Engineering 17.9% 13.7% (430 bps) Defence Engineering 20.3% 16.4% (390 bps) Q1 FY22 Q1 FY23 19.2% EBI
Slide 19: IT & Technology Services Segment
IT & Technology Services Segment (Amount in Rs. bn) Net Revenue 30% 72.3 94.2 Q1 FY22 Q1 FY23 22.8% EBITDA Margin 22.2% LTI LTTS Mindtree • LTI revenue growth led by BFS • LTTS revenue growth led by Transportation & Plant Engineering • Mindtree revenue growth led by Healthcare and Travel, Transporta
Slide 20: Financial Services Segment
Financial Services Segment Q1 Q1 Rs. Bn % Var FY22 FY23 Income from Operations 30.6 29.6 -3% Reported PAT 1.8 2.6 47% PAT (Net of NCI) accruing to the group 1.1 1.7 56% Book 884.4 880.8 - Gross Stage 3 Assets 6.67% 4.08% Net Stage 3 Assets 2.26% 1.87% Net worth (Net of NCI) 189.9 201.9 6% • Thrust t
Slide 21: Development Projects Segment
Development Projects Segment (Amount in Rs. bn) Net Revenue 19% 11.3 13.5 Q1 FY22 Q1 FY23 -0.4% EBITDA Margin 4.5% Power Development Hyd Metro • Segment includes Hyderabad Metro, Nabha Power & Hydel (up to the date of its divestment i.e. 30th August 2021) • Improved ridership in Metro & higher PLF i
Slide 22: Others Segment
Others Segment (Amount in Rs. bn) Net Revenue 21% 13.2 16.0 Q1 FY22 Q1 FY23 17.1% EBITDA Margin 17.2% Domestic International • Segment comprises Realty, Industrial Machinery & Products and Smart World & Communications • Strong Q1 revenue growth in Realty and Industrial Machinery • Segment margin imp
Slide 23: India – An oasis of stability amidst global macroeconomic volatility
India – An oasis of stability amidst global macroeconomic volatility C I G X-M Y Private Investments Government Exports less Consumption Expenditure Imports Visible Green Shoots Reforms Risks: Complementing Fiscal Support • Disproportionate rise in energy prices could derail growth each other • Wide
Slide 24: Thank You
Thank You Investor Relations: P Ramakrishnan (P.Ramakrishnan@larsentoubro.com) Harish Barai (Harish.Barai@larsentoubro.com) Shalmali Dange (Shalmali.Dange@larsentoubro.com) EPC Projects Hi-Tech Manufacturing Services 23
Slide 25: Balance Sheet
Balance Sheet Rs Billion Mar-22 Jun-22 Incr / (Decr) Equity & Reserves 824 833 9 Non Controlling Interest 130 134 4 Borrowings - Financial Services 841 805 (36) Development Projects 181 162 (19) Others 213 236 23 Sources of Funds 2188 2170 (18) Fixed Assets (incl ROU assets) 137 140 3 Intangible Ass
Slide 26: Cash Flow
Cash Flow Rs Bn Q1 FY22 Q1 FY23 Operating Profit 33.6 42.8 Changes in Working Capital [(Inc)/Dec] (33.8) (41.2) Direct Taxes (Paid) / Refund [Net] (6.9) (10.7) Net Cash from / (used in) Operations (A) (7.1) (9.2) Net Investment in Fixed Assets (incl. Intangible & Investment Property) (3.5) (8.4) Net
Slide 27: Segment Margin – Q1 FY23
Segment Margin – Q1 FY23 Q1 FY22 Q1 FY23 Segment (Rs Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Segment 10409 736 7.1% 14181 919 6.5% Energy Segment 4949 371 7.5% 5073 432 8.5% Hi-Tech Manufacturing Segment 1237 238 19.2% 1272 192 15.1% Other Segment 1320 225 17.1% 15
Slide 28: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Rs Bn Q1 FY22 Q1 FY23 L&T Power JVs 0.29 (0.03) L&T IDPL Group (0.45) (0.20) Others (0.09) (0.41) Total (0.25) (0.65) EPC Projects Hi-Tech Manufacturing Services 27