Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q2 2024 Earnings Presentation
29 slides from Larsen & Toubro's earnings presentation, Oct 30, 2023
Slide 1: Earnings Call Presentation Q2 / H1 FY24
Earnings Call Presentation Q2 / H1 FY24 31st October, 2023
Slide 2: Disclaimer
Tech Park II Bengaluru 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 materially differ from those in such forward looking state
Slide 3: Key Highlights
Key Highlights Statue of Oneness, Madhya Pradesh 3
Slide 4: Another Quarter of Strong All-Round Performance
Another Quarter of Strong All-Round Performance…….. Order Inflows: 72% y-o-y Highest ever Top Line Revenue: 19% y-o-y Bottom PAT 45% y-o-y Line Order Book: Rs 4507 bn Balance Healthy 15.3% Sheet NWC Ratio @ 16.7% Return Ratio ROE up 310 bps since Mar’23 Proud to be part of ISRO’s moon mission Chandr
Slide 5: Key Financial Indicators
Key Financial Indicators (Amount in ₹ bn) Q2 FY23 Q2 FY24 (y-o-y) Particulars H1 FY23 H1 FY24 (y-o-y) 519 892 72% Order Inflow 937 1547 65% Order Book 3700 4507 22% 428 510 19% Revenue 786 989 26% 11.4% 11.0% EBITDA (%) 11.3% 10.6% 22 32 45% Overall PAT 39 57 45% Particulars H1 FY23 H1 FY24 Net Work
Slide 6: Group Performance
Group Performance Khurja-Khatauli section of Eastern Dedicated Freight Corridor 6
Slide 7: Q2 / H1 FY24 Order Inflow/Order Book
Q2 / H1 FY24 Order Inflow/Order Book (Amount in ₹ bn) Order Inflow Order Book 72% 65% 22% Q2 FY24 H1 FY24 1040 1594 295 597 892 673 873 1547 3700 4507 2914 H1 FY23 Q2 FY23 346 173 519 585 352 937 2660 30-Sep-22 30-Sep-23 Domestic International • Highest ever quarterly order inflow aided by ultra meg
Slide 8: Group Performance – Sales & Costs
Group Performance – Sales & Costs Remarks for the quarter Q2 FY23 Q2 FY24 % Var Rs Billion H1 FY23 H1 FY24 % Var 427.6 510.2 19% Revenue 786.2 989.1 26% • Strong execution momentum continues in the Projects and Manufacturing portfolio 36% 43% International Rev. 37% 41% • MCO expense variation is ref
Slide 9: Group Performance – Profit Parameters
Group Performance – Profit Parameters Remarks for the quarter Q2 FY23 Q2 FY24 % Var Rs Billion H1 FY23 H1 FY24 % Var • Finance cost commensurate with level and 48.9 56.3 15% EBITDA 88.5 105.0 19% price of borrowing • Higher other income is a function of average (8.4) (8.6) 3% Fin. Cost (15.9) (17.2)
Slide 10: Segment Performance Highlights
Segment Performance Highlights Production Deck Module for a client in Middle East 10
Slide 11: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects Buildings & Factories Buildings Hydrocarbon & Factories LTI + Mindtree Buildings LTIMindtree & Factories Buildings Realty & Factories LTTS Smart World & Power Heavy Civil Communications* Digital Platforms Platforms Green Ener
Slide 12: Order Inflow Composition – Q2 / H1 FY24
Order Inflow Composition – Q2 / H1 FY24 Q2 FY24 Rs. 892 Bn H1 FY24 Rs. 1547 Bn Hi-Tech Hi-Tech Manufacturing, 3% Manufacturing, 2% Others, 3% Others, 3% Energy, 45% Services, 20% Segment Energy, 31% Services, 18% Infrastructure, Infrastructure, 31% 44% USA & Europe, USA & Europe, 11% 13% ROW, 2% Geo
Slide 13: Order Book as on 30-Sep-2023
Order Book as on 30-Sep-2023 Segment Geography Energy, 24% Middle East, 32% Hi-Tech Manufacturing, 6% USA & Europe, 0.5% Infrastructure, Others, 3% 67% Domestic, 65% ROW, 3% Order Book : ₹ 4507 Bn 13
Slide 14: Revenue Composition – Q2 / H1 FY24
Revenue Composition – Q2 / H1 FY24 Q2 FY24 Rs. 510 Bn H1 FY24 Rs. 989 Bn Hi-Tech Others, 3% Hi-Tech Others, 4% Manufacturing, 4% Manufacturing, 4% Segment Energy, 13% Services, 32% Energy, 13% Services, 32% Infrastructure, Infrastructure, 48% 47% Middle East, Middle East, 20% 18% Geography USA & Eur
Slide 15: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in ₹ bn) Net Revenue: 27% Net Revenue: 39% 335.5 466.7 246.1 11.4 193.7 69.8 63.6 120.1 36.8 156.9 176.3 346.6 271.9 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 6.6% EBITDA Margin 5.4% 6.6% EBITDA Margin 5.2% Domestic DomesticInternational • Healthy order inflow in Q2 • P
Slide 16: Energy Projects Segment
Energy Projects Segment (Amount in ₹ bn) Net Revenue: 22% Net Revenue: 26% 106.6 11.4 134.7 67.9 55.9 19.3 39.2 34.3 63.1 71.6 72.3 36.6 28.7 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 8.5% EBITDA Margin 9.5% 8.5% EBITDA Margin 9.3% Domestic DomesticInternational • Receipt of ultra mega orders in GCC boosts Hy
Slide 17: Hi-Tech Manufacturing Segment
Hi-Tech Manufacturing Segment (Amount in ₹ bn) Net Revenue: 30% Net Revenue: 34% 27.3 11.4 36.7 18.9 14.6 5.6 5.6 12.2 3.2 24.5 11.4 13.2 21.7 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 18.5% EBITDA Margin 14.9% 16.9% EBITDA Margin 15.8% Domestic DomesticInternational • Receipt of a key order contributes to or
Slide 18: IT & Technology Services Segment
IT & Technology Services Segment (Amount in ₹ bn) Net Revenue: 7% Net Revenue: 10% 199.9 11.4 220.3 111.8 104.4 23.3 42.2 45.3 22.5 81.9 88.5 157.7 175.0 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 21.4% EBITDA Margin 20.2% 21.6% EBITDA Margin 20.4% LTIMindtree Domestic LTTS • LTIMindtree revenue growth led by
Slide 19: Financial Services Segment Fintech@Scale
Financial Services Segment Fintech@Scale Q2 Q2 % Var Rs. Bn H1 FY23 H1 FY24 % Var FY23 FY24 31.5 30.8 -2% Income from Operations 61.1 61.0 0% 4.1 5.9 46% Reported PAT 6.7 11.3 68% 2.7 3.9 46% PAT (Net of NCI) accruing to the group 4.4 7.5 68% Poised to achieve Lakshya goals ahead of FY26 Retailisati
Slide 20: Development Projects Segment
Development Projects Segment (Amount in ₹ bn) Net Revenue: 38% Net Revenue: 17% 26.9 11.4 31.4 18.5 13.4 3.3 7.3 9.4 1.7 22.0 11.8 11.2 23.6 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 5.2% EBITDA Margin 38.7% 4.8% EBITDA Margin 29.2% DomesticHyd Metro Power Development • Segment includes Hyderabad Metro and Po
Slide 21: Others Segment
Others Segment (Amount in ₹ bn) Net Revenue: 14% Net Revenue: 32% 28.9 38.2 11.4 16.2 14.2 1.8 2.2 2.8 1.2 13.0 14.4 26.7 35.4 Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 17.5% EBITDA Margin 20.0% 18.1% EBITDA Margin 19.2% Domestic DomesticInternational • Segment comprises Realty, Industrial Valves, Constructio
Slide 22: India's Resilience amidst global Turbulence
India’s Resilience amidst global Turbulence GLOBAL INDIA Protracted / emerging geo-political tensions “Capacity utilization” & “credit indicators” looking up Elevated inflation and tighter financial conditions Healthy Balance Sheets – a growth enabler Contracting global trade Robust public capex sup
Slide 23: 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 24: Balance Sheet
Balance Sheet ₹ Billion Mar-23 Sep-23 Incr / (Decr) Equity & Reserves 893 784 -109 Non Controlling Interest 142 150 8 Borrowings - Financial Services 820 761 -59 Development Projects 179 168 -11 Others 187 269 82 Sources of Funds 2221 2132 -89 Fixed Assets (incl ROU assets) 164 176 12 Intangible Ass
Slide 25: Cash Flow
Cash Flow Q2 FY23 Q1 FY24 Q2 FY24 ₹ Billion H1 FY23 H1 FY24 51.6 52.0 55.7 Operating Profit 94.3 107.6 5.8 (50.3) (8.0) Changes in Working Capital [(Inc)/Dec] (35.4) (58.3) (16.2) (11.6) (12.6) Direct Taxes (Paid) / Refund [Net] (26.9) (24.2) 41.2 (9.9) 35.0 Net Cash from / (used in) Operations (A)
Slide 26: Segment Margin – Q2 FY24
Segment Margin – Q2 FY24 Q2 FY23 Q2 FY24 Segment (₹ Crore) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 19370 1287 6.6% 24613 1332 5.4% Energy Projects Segment 5586 472 8.5% 6788 646 9.5% Hi-Tech Manufacturing Segment 1456 270 18.5% 1886 281 14.9% Others Se
Slide 27: Segment Margin – H1 FY24
Segment Margin – H1 FY24 H1 FY23 H1 FY24 Segment (₹ Crore) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 33551 2206 6.6% 46671 2450 5.2% Energy Projects Segment 10659 904 8.5% 13470 1254 9.3% Hi-Tech Manufacturing Segment 2728 462 16.9% 3668 581 15.8% Others
Slide 28: Breakup of Energy and Hi-Tech Manufacturing Segment
Breakup of Energy and Hi-Tech Manufacturing Segment Q2 FY23 Q2 FY24 Y-o-Y ₹ Bn H1 FY23 H1 FY24 Y-o-Y 84.4 401.4 >100% Energy Segment 128.1 473.9 >100% Order Inflow 74.2 388.1 >100% Hydrocarbon 115.9 458.4 >100% 10.2 13.3 30% Power 12.1 15.5 28% 55.9 67.9 22% Energy Segment 106.6 134.7 26% Energy Seg
Slide 29: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q2 FY23 Q2 FY24 ₹ Bn H1 FY23 H1 FY24 0.01 0.04 L&T Power JVs (0.02) (0.09) (0.32) (0.00) L&T IDPL Group* (0.52) (0.00) (0.03) (0.14) Others** (0.44) (0.22) (0.34) (0.10) Total (0.99) (0.31) * Profit consolidation of L&T IDPL at PAT level has been discontinued