Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q1 FY25 Earnings Presentation
30 slides from Larsen & Toubro's earnings presentation, Jul 24, 2024
Slide 1: Analyst Presentation Q1/FY25 filing letter
e LARSEN & TOUBRO Larsen & Toubro Limited Secretarial Department L&T House, Ballard Estate Narottam Morarjee Marg Mumbai - 400 001, INDIA Tel: +91 22 6752 5656 Fax: +91 22 6752 5858 www.Larsentoubro.com SEC/2024 July 24, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jejeebhoy Tow
Slide 2: Earnings Call Presentation Q1 FY25
Earnings Call Presentation Q1 FY25 24th July, 2024
Slide 3: Disclaimer
Representative Image - Chennai Innovation Campus & Avinya Enclave, Chennai This presentation contains certain forward looking statements concerning L&T’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materi
Slide 4: Key Highlights
Key Highlights Mumbai Ahmedabad High Speed Rail Project C6 Package
Slide 5: Growth momentum continues in Q1
Growth momentum continues in Q1….. Strong Aided by improved Performance in an Large & execution in election quarter Diversified Stable EBITDA margin “Projects & Manufacturing” Order Inflows Order Book Revenue Margin Comfortable Gross @13.9% in Jun’24; On an improving & Net Debt levels within the gui
Slide 6: Key Financial Indicators
Key Financial Indicators (Amount in ₹ bn) Q1 FY24 Particulars Q1 FY25 (y-o-y) 655 Order Inflow 709 8% 4126 Order Book 4909 19% 479 Revenue 551 15% 10.2% EBITDA (%) 10.2% 25 Overall PAT 28 12% Q1 FY24 Particulars Q1 FY25 17.0% Net Working Capital 13.9% 12.8% ROE (TTM) (%) 14.7% 5
Slide 7: Group Performance
Group Performance Blue Hydrogen Manufacturing Unit (HMU) for a client in Netherlands 6
Slide 8: Q1 FY25 Order Inflow/Order Book
Q1 FY25 Order Inflow/Order Book (Amount in ₹ bn) Order Inflow Order Book 8% 19% Q1 FY24 Q1 FY25 1206 383 326 709 1857 4126 4909 3052 379 276 655 2920 30-Jun-23 30-Jun-24 Domestic International • Strong ordering momentum in the Middle East drives order inflow growth in Q1 • International orders const
Slide 9: Group Performance – Revenue to EBITDA
Group Performance – Revenue to EBITDA Rs Billion Q1 FY24 Q1 FY25 % Var Revenue 478.8 551.2 15% • Strong execution momentum in Infrastructure, International Rev. 40% 48% Hydrocarbon and Precision Engineering & Systems business drive revenue growth MCO Exp.* 293.5 341.8 16% • MCO expense and Staff Cos
Slide 10: Group Performance – EBITDA to PAT
Group Performance – EBITDA to PAT Rs Billion Q1 FY24 Q1 FY25 % Var EBITDA 48.7 56.2 15% Fin. Cost (8.5) (8.6) 1% • Finance cost in line with PY • Lower other income reflective of decrease in Depreciation (8.3) (10.0) 20% average investments consequent upon Share Buyback Other Income 11.5 9.2 -20% •
Slide 11: Segment Performance Analysis
Segment Performance Analysis Zinc Smelter Plant for a client in Rajasthan 10
Slide 12: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects LTIMindtree Buildings & Factories Buildings Hydrocarbon & Factories Buildings & Factories Realty LTTS CarbonLite Solutions# Industrial Machinery & Heavy Civil Digital Platforms Products Green Energy EPC Data Centers Water Sma
Slide 13: Order Inflow Composition – Q1 FY25
Order Inflow Composition – Q1 FY25 Segment Geography Energy, 12% Middle East, 30% Hi-Tech Manufacturing, 5% Others, 3% USA & Europe, 15% Services, 23% Infrastructure, 57% Domestic, 54% ROW, 1% Order Inflow : ₹ 709 Bn 12
Slide 14: Order Book as on 30-Jun-2024
Order Book as on 30-Jun-2024 Segment Geography Energy, 24% Middle East, 35% Hi-Tech Manufacturing, 7% Domestic, 62% USA & Europe, 0.4% Infrastructure, Others, 3% 66% ROW, 3% Order Book : ₹ 4909 Bn 13
Slide 15: Revenue Composition – Q1 FY25
Revenue Composition – Q1 FY25 Segment Geography Energy, 15% Middle East, 26% Hi-Tech Manufacturing, 3% Others, 3% USA & Europe, 18% Services, 30% Infrastructure, Domestic, 52% ROW, 4% 49% Revenue : ₹ 551 Bn 14
Slide 16: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in ₹ bn) Net Revenue: 22% 220.6 269.1 50.2 92.4 176.7 170.4 Q1 FY24 Q1 FY25 Domestic DomesticInternational 5.1% EBITDA Margin 5.8% • Q1 order inflows in line with the PY • Robust prospects pipeline of ₹ 6 trillion for the near term • Strong revenue momentum le
Slide 17: Energy Projects Segment
Energy Projects Segment* (Amount in ₹ bn) Net Revenue: 27% 66.8 85.0 27.4 32.4 34.4 57.6 Q1 FY24 Q1 FY25 Domestic DomesticInternational 9.1% EBITDA Margin 8.7% • Receipt of domestic offshore orders buoys Hydrocarbon order book • Execution ramp up in international projects drives Hydrocarbon revenue
Slide 18: Hi-Tech Manufacturing Segment
* Hi-Tech Manufacturing Segment (Amount in ₹ bn) Net Revenue: 4% 17.8 18.5 4.2 6.6 11.2 14.3 Q1 FY24 Q1 FY25 Domestic DomesticInternational 16.8% EBITDA Margin 17.4% • Receipt of a shipbuilding order contributes to the order inflow growth in Precision Engineering & Systems (PES); Heavy Engineering o
Slide 19: IT & Technology Services Segment
IT & Technology Services Segment (Amount in ₹ bn) Net Revenue: 6% 108.5 115.1 22.0 24.0 86.5 90.9 Q1 FY24 Q1 FY25 LTIMindtree DomesticLTTS 20.6% EBITDA Margin 20.0% • LTIMindtree revenue growth led by Technology Media & Communications and Manufacturing & Resources • LTTS revenue growth led by Mobili
Slide 20: Financial Services Segment Fintech@Scale
Financial Services Segment Fintech@Scale Retail Disbursements: 33% yoy Rs. Bn Q1 FY24 Q1 FY25 % Var Income from Operations 30.2 36.6 21% Retail Book: 31% yoy PAT 5.3 6.9 29% PAT (Net of NCI) accruing to the group 3.5 4.5 28% PAT: 29% yoy 5 Pillar strategy to deliver on Lakshya goals Enhancing Custom
Slide 21: Development Projects Segment
Development Projects Segment * (Amount in ₹ bn) Net Revenue: 3% 12.9 13.3 2.1 2.2 10.8 11.0 Q1 FY24 Q1 FY25 Power Development DomesticHyderabad Metro 15.8% EBITDA Margin 17.0% • Segment includes Hyderabad Metro and Power Development (Nabha Power) • Improved ridership in Hyderabad Metro and higher PL
Slide 22: Others Segment
Others Segment * (Amount in ₹ bn) Net Revenue: 37% 22.0 13.7 1.0 2.3 11.4 21.0 Q1 FY24 Q1 FY25 Domestic DomesticInternational 18.6% EBITDA Margin 23.4% • Segment majorly comprises Realty and Industrial Machinery & Products • Decline in revenue primarily due to lower handover of residential units in
Slide 23: Our Business offerings are aligned to Global Megatrends
Our Business offerings are aligned to Global Megatrends Urbanisation Boom Climate Change High-rise Buildings (B&F) Renewables - Solar, Hydel and Storage (HCI, PT&D) Multi-model Transportation Network (TI, HCI) Green Buildings (B&F) High-capacity Utility Networks (PT&D, WET) Clean Fuels (HE, LTEH) Sa
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) 23
Slide 25: Balance Sheet
Balance Sheet ₹ Billion Mar-24 Jun-24 Incr / (Decr) Equity & Reserves 864 892 28 Non Controlling Interest 162 162 0 Borrowings - Financial Services 761 799 38 Development Projects 165 166 1 Others 214 216 2 Sources of Funds 2166 2235 69 Fixed Assets (incl ROU assets) 185 187 2 Intangible Assets & In
Slide 26: Cash Flow
Cash Flow ₹ Billion Q1 FY24 Q1 FY25 Operating Profit 52.0 57.1 Changes in Working Capital [(Inc)/Dec] (50.3) (48.6) Direct Taxes (Paid) / Refund [Net] (11.6) (13.5) Net Cash from / (used in) Operations (A) (9.9) (5.0) Net Investment in Fixed Assets (incl. Intangible & Investment Property) (6.3) (5.2
Slide 27: Segment Details – Q1 FY25
Segment Details – Q1 FY25 Q1 FY24 Q1 FY25 Segment (₹ Crore) EBITDA EBITDA Order Inflow Net Revenue EBITDA Order Inflow Net Revenue EBITDA % % Infrastructure Projects Segment 40051 22058 1117 5.1% 40053 26908 1553 5.8% Energy Projects Segment 7245 6682 608 9.1% 8792 8495 741 8.7% Hi-Tech Manufacturin
Slide 28: Breakup of Energy and Hi-Tech Manufacturing Segment
Breakup of Energy and Hi-Tech Manufacturing Segment ₹ Bn Q1 FY24 Q1 FY25 Y-o-Y Energy Segment 72.4 87.9 21% Order Inflow Hydrocarbon 70.2 85.4 22% CarbonLite Solutions 2.2 2.5 15% Energy Segment 66.8 84.9 27% Revenue Hydrocarbon 59.4 79.7 34% Energy Segment CarbonLite Solutions 7.4 5.2 -30% Energy S
Slide 29: Breakup of Development Projects and Others Segment
Breakup of Development Projects and Others Segment ₹ Bn Q1 FY24 Q1 FY25 Y-o-Y Development Projects 12.9 13.3 3% Revenue Hyderabad Metro 2.1 2.2 7% Nabha Power 10.8 11.0 2% Development Projects 15.8% 17.0% 120 bps Development Projects EBITDA Margin Hyderabad Metro 48.6% 45.0% -360 b ps Nabha Power 9.
Slide 30: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q1 FY24 ₹ Bn Q1 FY25 (0.12) L&T Power JVs (0.05) (0.12) L&T Hydrocarbon JVs 0.10 0.04 Others** (0.00) (0.21) Total 0.05 ** Others mainly includes Defence JVs 29