Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q1 FY22 Earnings Presentation
29 slides from Larsen & Toubro's earnings presentation, 2021
Slide 1: Analyst Presentation – Q1 FY22
LARSEN & TOUBRO Analyst Presentation – Q1 FY22 Sensitivity : This Document is classified as "LNT General Business".
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward retain highly skilled professionals, time and cost looking statements concerning L&T’s future over runs on contracts, our ability to manage our business prospects and business profitability, international operations, government policies which are
Slide 3: EPC Projects, Hi-Tech Manufacturing, Services
EPC Projects Hi- Tech Manufacturing 3 Services Sensitivity : This Document is classified as "LNT General Business".
Slide 4: Navigating against the tide as second wave swells…
Navigating against the tide as second wave swells… Delay in tendering Strong growth on EBITDA margin Order Book at & awards in Q1 low base despite improvement on near record high productivity better overhead Prospects bright levels challenges recovery Order Inflows Order Book Revenue Margin Improved
Slide 5: Key Financial Indicators
Key Financial Indicators (Amount in ₹ bn) % Var Q1 FY21 Particulars Q1 FY22 (y-o-y) 236 Order Inflow 266 13% 3051 Order Book 3237 6% 213 Revenue 293 38% 7.6% EBITDA (%) 10.8% 2 Operational PAT 12 >100% 3 Overall PAT 12 >100% 26.8% Net Working Capital 22.9% 12.7% RONW (TTM) (%)* 17.2% *Includes gain
Slide 6: EPC Projects, Hi-Tech Manufacturing, Services
EPC Projects Hi- Tech Manufacturing Services Sensitivity : This Document is classified as "LNT General Business". 6
Slide 7: Q1 FY22 Order Inflow/Order Book
Q1 FY22 Order Inflow/Order Book (Amount in ₹ bn) Order Inflow Order Book 13% 6% Q1 FY21 Q1 FY22 745 663 176 90 266 3051 3237 147 89 2306 2574 236 Q1 FY21 Q1 FY22 Domestic International • Q1 order Inflows from Infra, Hydrocarbon, Power, Heavy Engineering and Industrial Machinery business • Ordering m
Slide 8: Group Performance – Sales & Costs
Group Performance – Sales & Costs Rs Billion Q1 FY21 Q1 FY22 % Var • E&C revenues drive growth Revenue 212.6 293.3 38% amidst continuing pandemic International Rev. 45% 38% • MCO expense variation largely reflective of increase in activity MCO Exp.* 92.3 154.4 67% level and higher input costs Fin. C
Slide 9: Group Performance – Profit Parameters
Group Performance – Profit Parameters Rs Billion Q1 FY21 Q1 FY22 % Var EBITDA 16.2 31.7 96% • Better overhead recovery Fin. Cost (10.6) (8.3) -22% contributes to EBITDA growth Depreciation (6.7) (7.2) 7% • Finance cost commensurate Other Income 7.8 6.5 -17% with reduced level of borrowing Tax Expens
Slide 10: EPC Projects, Hi-Tech Manufacturing, Services
EPC Projects Hi- Tech Manufacturing Services 10 Sensitivity : This Document is classified as "LNT General Business".
Slide 11: Segment Composition
Segment Composition Heavy Defence Hydrocarbon Infrastructure Power Engineering Engineering Buildings & Factories (B&F) EPC- Coal & Gas Process Plant Equipment Defence Onshore Transportation Infra (TI) Thermal Power Plant Nuclear Power Plant Aerospace Offshore Heavy Civil infra (HC) Construction Equi
Slide 12: Order Inflow Composition
Order Inflow Composition Middle East, 6% Power, 3% USA & Europe, Services, 43% HE, 2% 23% Defence, 2% Hydrocarbon, 4% Domestic, 66% ROW, 5% Infrastructure, 42% Others, 4% Q1 FY22 Rs 266 Bn EPC Projects Hi- Tech Manufacturing Services 12 Sensitivity : This Document is classified as "LNT General Busin
Slide 13: Order Book Composition
Order Book Composition Power, 4% HE, 1% Middle East, Defence, 2% 12% Hydrocarbon, Domestic, Infrastructure, 13% 80% ROW, 8% 76% Others, 4% Q1 FY22 Rs 3237 Bn EPC Projects Hi- Tech Manufacturing Services 13 Sensitivity : This Document is classified as "LNT General Business".
Slide 14: Revenue Composition
Revenue Composition Power, 3% Middle East, 10% HE, 2% USA & Europe, 21% Defence, 2% Services, 39% Hydrocarbon, 14% Domestic, 62% Infrastructure, Others, 4% ROW, 7% 35% Q1 FY22 Rs 293 Bn EPC Projects Hi- Tech Manufacturing Services 14 Sensitivity : This Document is classified as "LNT General Business
Slide 15: Infrastructure Segment
Infrastructure Segment Net Revenue 63% (Amount in ₹ bn) 63.9 104.1 Q1 FY21 Q1 FY22 6.3% EBITDA Margin 7.1% Domestic International • Disrupted ordering momentum in Q1, multiple award deferments seen • Strong execution growth over low base of LY, despite impact of Covid 2nd wave • Better job mix and i
Slide 16: Power Segment
Power Segment (Amount in ₹ bn) Net Revenue >100% 3.7 7.6 Q1 FY21 Q1 FY22 1.0% EBITDA Margin 2.5% Domestic International • FGD win in Q1, healthy order book on the back of large wins in FY20 • Better execution progress drives growth in revenue and margin • Profits of Boiler, Turbine and other JV comp
Slide 17: Heavy Engineering Segment
Heavy Engineering Segment (Amount in ₹ bn) Net Revenue 45% 3.8 5.5 Q1 FY21 Q1 FY22 17.5% EBITDA Margin 17.9% Domestic International • Multiple order wins in Refinery, Oil & Gas verticals • Improved project execution across multiple jobs leads revenue recovery in Q1 • Margins in line with higher reve
Slide 18: Defence Engineering Segment
Defence Engineering Segment (Amount in ₹ bn) Net Revenue 46% 4.7 6.9 Q1 FY21 Q1 FY22 12.9% EBITDA Margin 20.3% Domestic International • Policy pronouncements around indigenisation to drive order inflows in medium to long term • Better job progress drives revenues in Q1 • Margin contributed by cost s
Slide 19: Hydrocarbon Segment
Hydrocarbon Segment (Amount in ₹ bn) Net Revenue 37% 30.6 41.9 Q1 FY21 Q1 FY22 5.3% EBITDA Margin 9.6% Domestic International • Subdued order inflows during the quarter • Strong execution activities drive revenues in Q1 • Q1 margin aided by one-time claim & cost savings EPC Projects Hi- Tech Manufac
Slide 20: Developmental Projects Segment
Developmental Projects Segment (Amount in ₹ bn) Net Revenue >100% 5.5 11.3 Q1 FY21 Q1 FY22 7.0% EBITDA Margin -0.4% Power Development Hyd Metro • Segment includes Power Development business (Thermal and Hydro) and Hyderabad Metro • Revenue largely contributed by Power Development Business. Consequen
Slide 21: IT & Technology Services Segment
IT & Technology Services Segment (Amount in ₹ bn) Net Revenue 20% 60.3 72.2 Q1FY21 Q1 FY22 20.7% EBITDA Margin 23.1% LTI LTTS Mindtree • LTI revenue growth led by BFS, Hi-Tech, Media and Entertainment, Manufacturing and CPG, Retail & Pharma • Mindtree revenue growth led by Travel, Transportation & H
Slide 22: Others Segment
Others Segment (Amount in ₹ bn) Net Revenue 86% 7.1 13.3 Q1 FY21 Q1 FY22 6.7% EBITDA Margin 15.2% Domestic International • Segment comprises Realty, Construction & Mining Equipment, Rubber Processing Machinery, Industrial Valves and Smart World & Communications • Broad based revenue and margin growt
Slide 23: Financial Services Segment
Financial Services Segment Rs Bn Q1 FY21 Q1 FY22 % Var Income from Operations 32.8 30.6 -7% Reported PAT (Net of NCI) 1.5 1.8 20% PAT (Net of NCI) accruing to the 0.9 1.1 17% group Mutual Fund Average AUM 583.6 755.3 29% Book 988.8 884.4 -11% Gross Stage 3 Assets 5.2% 5.8% Net Stage 3 Assets 1.7% 2.
Slide 24: The Road Ahead….. Belief that economic growth will return
The Road Ahead….. Belief that economic growth will return Key Determinants Ahead Enhanced fiscal commitment Enabling environment for execution from government Sustained capex ordering from Govt / PSUs Accommodative Liquidity RBI policies Low base to Private Capex revival despite early drive economic
Slide 25: Thank You
Thank You Investor Relations: P Ramakrishnan (P.Ramakrishnan@larsentoubro.com) Harish Barai (Harish.Barai@larsentoubro.com) Shalmali Dange (Shalmali.Dange@larsentoubro.com) Sensitivity : This Document is classified as "LNT General Business". EPC Projects Turn overleaf forServices Hi- Tech Manufactur
Slide 26: Balance Sheet
Balance Sheet Rs Billion Mar-21 Jun-21 Incr / (Decr) Equity & Reserves 759 772 14 Non Controlling Interest 121 124 4 Borrowings - Financial Services 865 824 -40 Development Projects 206 187 -19 Others 255 250 -6 Sources of Funds 2205 2158 -48 Fixed Assets (incl ROU assets) 138 137 -1 Intangible Asse
Slide 27: Cash Flow
Cash Flow Rs Bn Q1 FY21 Q1 FY22 Operating Profit 18.1 33.6 Changes in Working Capital [(Inc)/Dec] (3.8) (34.7) Direct Taxes (Paid) / Refund [Net] (5.0) (6.9) Net Cash from / (used in) Operations (A) 9.3 (7.9) Net Investment in Fixed Assets (incl. Intangible & Investment Property) (3.6) (3.5) Net (Pu
Slide 28: Segment Margin
Segment Margin Q1FY21 Q1FY22 Segment (Rs Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Ex-Services business: Infrastructure Segment 6393 400 6.3% 10409 736 7.1% Power Segment 374 4 1.0% 759 19 2.5% Hydrocarbon Segment 3062 163 5.3% 4190 401 9.6% Heavy Engineering Segment 378 66 17.5% 5
Slide 29: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Rs Bn Q1 FY21 Q1 FY22 Boiler/Turbine JVs 0.11 0.24 IDPL & Subs. (0.62) (0.45) Special Steels and Heavy Forgings (0.41) - Others (0.09) (0.04) Total (1.01) (0.25) EPC Projects Hi- Tech Manufacturing Services 29 Sensitivity : This Document is classified as "LNT