Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q4 FY24 Earnings Presentation
39 slides from Larsen & Toubro's earnings presentation, May 8, 2024
Slide 1: Exchange filing cover letter: Analyst Presentation Q4 / FY24
8 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 May 8, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jejeebhoy Tower
Slide 2: Earnings Call Presentation Q4 / FY24
Earnings Call Presentation Q4 / FY24 08th May, 2024 India’s first Coastal Road with underground tunnel
Slide 3: Disclaimer
L&T Tech Park, 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 sta
Slide 4: Key Highlights
Key Highlights Yashobhoomi (India International Convention and Expo Centre), New Delhi 3
Slide 5: Robust performance in a volatile global macro backdrop
Robust performance in a volatile global macro backdrop ₹ 3 trillion+ ≈ ₹ 4.8 trillion Order Inflow Order Book in FY24 as on 31% y-o-y growth 31st March 2024 ₹ 2.2 trillion ₹ 131 billion Revenue Growth Reported PAT in FY24 in FY24 21% y-o-y growth 25% y-o-y growth 12.0% 14.9% NWC / Revenue as on ROE
Slide 6: Landmark Projects of FY24
Critical booster segments for Chandrayaan 3 Landmark Projects Shri Ram Janmabhoomi Mandir, Ayodhya Atal Setu, Mumbai of FY24 Statue of Oneness, Omkareshwar India’s first 3D-Printed Post Office, Bengaluru Mumbai Coastal Road Project 5
Slide 7: Key Financial Indicators
Key Financial Indicators (Amount in ₹ bn) Q4 FY23 Q4 FY24 (y-o-y) Particulars FY23 FY24 (y-o-y) 761 721 -5% Order Inflow 2305 3028 31% Order Book 3970 4758 20% 583 671 15% Revenue 1833 2211 21% 11.7% 10.8% EBITDA (%) 11.3% 10.6% 40 43 8% Recurring PAT 104 130 25% 40 44 10% Overall PAT 105 131 25% Pa
Slide 8: Group Performance
Group Performance Offshore Jackets for a project in KSA 7
Slide 9: Q4 / FY24 Order Inflow/Order Book
Q4 / FY24 Order Inflow/Order Book (Amount in ₹ bn) Order Inflow Order Book 5% 31% 20% Q4 FY24 1118 1809 FY24 469 252 721 1397 1631 3028 3970 4758 2949 Q4 FY23 2852 FY23 401 360 761 1440 865 2305 31-Mar-23 31-Mar-24 Domestic International • Record Order Inflow of Rs 3 trillion in a year • Internation
Slide 10: Group Performance – Revenue to EBITDA
Group Performance – Revenue to EBITDA Remarks for the quarter Q4 FY23 Q4 FY24 % Var ₹ Billion FY23 FY24 % Var • Strong execution momentum in 583.4 670.8 15% Revenue 1833.4 2211.1 21% Infrastructure, Precision Engineering & Systems and Realty drive revenue growth 39% 44% International Rev. 38% 43% •
Slide 11: Group Performance – EBITDA to PAT
Group Performance – EBITDA to PAT Remarks for the quarter Q4 FY23 Q4 FY24 % Var ₹ Billion FY23 FY24 % Var 68.3 72.3 6% EBITDA 207.5 234.9 13% • Finance cost commensurate with level and price of borrowing (8.1) (9.3) 14% Fin. Cost (32.1) (35.5) 11% • Higher other income reflective of improved (8.5) (
Slide 12: Segment Performance Highlights
Segment Performance Highlights Titanium Clad Equipment for a domestic Onshore project 11
Slide 13: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects LTIMindtree Buildings & Factories Buildings Hydrocarbon & Factories Buildings Realty & Factories LTTS Smart World & Power Heavy Civil Digital Platforms Communications* Green Energy EPC Data Centers Industrial Machinery & Wate
Slide 14: Order Inflow Composition – Q4 / FY24
Order Inflow Composition – Q4 / FY24 Q4 FY24 Rs. 721 Bn FY24 Rs. 3028 Bn Hi-Tech Hi-Tech Manufacturing, Manufacturing, 5% 12% Others, 3% Others, 4% Services, 21% Segment Energy, 18% Energy, 24% Services, 22% Infrastructure, Infrastructure, 44% 47% USA & Europe, ROW, 5% ROW, 3% 13% USA & Europe, 13%
Slide 15: Order Book as on 31-Mar-2024
Order Book as on 31-Mar-2024 Segment Geography Energy, 25% Middle East, 35% Hi-Tech Manufacturing, 7% Domestic, 62% USA & Europe, 0.3% Infrastructure, Others, 3% 65% ROW, 3% Order Book : ₹ 4758 Bn 14
Slide 16: Revenue Composition – Q4 / FY24
Revenue Composition – Q4 / FY24 Q4 FY24 Rs. 671 Bn FY24 Rs. 2211 Bn Hi-Tech Manufacturing, 4% Hi-Tech Others, 3% Others, 3% Manufacturing, 4% Energy, 12% Segment Services, 29% Services, 24% Energy, 13% Infrastructure, Infrastructure, 57% 51% Middle East, Middle East, 27% 22% Geography USA & Europe,
Slide 17: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in ₹ bn) Net Revenue: 22% Net Revenue: 30% 380.3 867.2 11.4 1125.5 312.2 137.8 82.9 191.9 338.4 242.5 787.1 229.3 675.3 Q4 FY23 Q4 FY24 FY23 FY24 7.5% EBITDA Margin 7.9% 7.0% EBITDA Margin 6.2% Domestic DomesticInternational Remarks for the quarter • Q4 order
Slide 18: Energy Projects Segment
Energy Projects Segment* (Amount in ₹ bn) Net Revenue: 4% Net Revenue: 19% 249.1 11.4 295.4 79.2 82.0 37.4 50.1 96.8 123.9 152.3 171.5 41.8 31.9 Q4 FY23 Q4 FY24 FY23 FY24 10.4% EBITDA Margin 11.4% 9.1% EBITDA Margin 10.0% Domestic DomesticInternational Remarks for the quarter • Receipt of multiple d
Slide 19: Hi-Tech Manufacturing Segment
Hi-Tech Manufacturing Segment * (Amount in ₹ bn) Net Revenue: 15% Net Revenue: 25% 65.3 11.4 82.0 24.6 21.3 6.2 15.5 25.3 6.4 56.7 18.4 49.8 14.9 Q4 FY23 Q4 FY24 FY23 FY24 19.7% EBITDA Margin 16.7% 18.0% EBITDA Margin 16.3% Domestic International Remarks for the quarter Domestic • Receipt of a major
Slide 20: IT & Technology Services Segment
IT & Technology Services Segment (Amount in ₹ bn) Net Revenue: 3% Net Revenue: 7% 415.4 11.4 444.7 109.2 112.4 23.4 24.3 86.8 93.3 85.8 88.0 328.5 351.2 Q4 FY23 Q4 FY24 FY23 FY24 19.7% EBITDA Margin 20.0% 20.4% EBITDA Margin 20.4% LTIMindtree Domestic LTTS Remarks for the quarter • Subdued Global ma
Slide 21: Financial Services Segment Fintech@Scale
Financial Services Segment Fintech@Scale Q4 Q4 % Var Rs. Bn FY23 FY24 % Var FY23 FY24 31.2 36.0 15% Income from Operations 125.7 131.1 4% 5.0 5.5 11% Reported PAT 16.2 23.2 43% 3.3 3.7 11% PAT (Net of NCI) accruing to the group 10.7 15.4 43% Rapid progress towards achieving Strategic Plan 2026 targe
Slide 22: Development Projects Segment
Development Projects Segment (Amount in ₹ bn) Net Revenue: 2% Net Revenue: 12% 50.2 11.4 56.2 12.3 12.6 6.9 13.9 1.9 2.3 10.4 10.3 42.3 43.3 Q4 FY23 Q4 FY24 FY23 FY24 41.6% EBITDA Margin 17.3% 14.2% EBITDA Margin 23.7% DomesticHyd Metro Power Development Remarks for the quarter • Segment includes Hy
Slide 23: Others Segment
Others Segment (Amount in ₹ bn) Net Revenue: 27% Net Revenue: 26% 60.4 76.3 22.8 11.4 18.0 2.6 5.3 7.5 1.8 20.2 16.2 55.1 68.8 Q4 FY23 Q4 FY24 FY23 FY24 21.1% EBITDA Margin 22.6% 19.8% EBITDA Margin 21.2% Domestic International Remarks for the quarter • Segment comprises Realty, Industrial Valves, C
Slide 24: Strategic Plan Progress
Strategic Plan Progress Dwarka Expressway 23
Slide 25: Strategic Plan (FY21 – FY26) Progress
Strategic Plan (FY21 – FY26) Progress Strat Plan Target Current Status CAGR CAGR Rs Trillion, % FY21 FY26 FY24 (FY21 - FY26) (FY21 - FY24) Order Inflow 1.7 3.4 14% 3.0 20% Revenue 1.4 2.7 15% 2.2 18% ROE 10% 18% 15% Key achievements till date Incubated Value accretive Fast tracking Cash returned to
Slide 26: Return Ratios – 5 Year Trend
Return Ratios – 5 Year Trend Desalination plant at Dahej 25
Slide 27: Return ratios improve in the Projects & Manufacturing portfolio
Return ratios improve in the Projects & Manufacturing (P&M)* portfolio (Amount in ₹ crore) Particulars FY20 FY21 FY22 FY23 FY24 Growth over FY20 Gross Segment Revenue (P&M) 106034 94639 109800 126211 160837 52% Y-o-Y% 1% -11% 16% 15% 27% Segment Result (PBIT) 9301 8230 8842 9305 11069 19% Y-o-Y% 10%
Slide 28: The Journey of Improving Return ratios at Group level
The Journey of Improving Return ratios at Group level (Amount in ₹ crore) Financial Development Unallocable FY24 P&M IT&TS Total Services Projects Corporate Gross Segment Revenue 160837 44916 13109 5628 0 221113# Segment Result (PBIT) (A) 11069 7659 3028 1015 1198 23969# Segment Funds Employed (B) 3
Slide 29: Improving Working Capital Ratios – GWC and NWC
Improving Working Capital Ratios – GWC and NWC (Amount in ₹ crore) Particulars FY20 FY21 FY22 FY23 FY24 Consolidated Revenue 131630 122575 144550 170766 208004 (excluding Financial Services) Y-o-Y% -6% 18% 18% 22% Gross Working Capital (GWC) 101081 97548 106029 106445 114549 (excluding Financial Ser
Slide 30: Outlook – Projects & Manufacturing
Outlook – Projects & Manufacturing Delhi-Meerut RRTS 29
Slide 31: Well-positioned to ride the capex cycle
Well-positioned to ride the capex cycle INDIA MIDDLE EAST Airports Dedicated Freight Value Value Operational Operational Energy Transition Monetisation Monetisation Excellence Excellence Metros Corridors Logistics Mid & Energy Water Supply Robust Robust Order Efficient & Efficient & Downstream Order
Slide 32: Thank You
Thank You Investor Relations: P Ramakrishnan (P.Ramakrishnan@larsentoubro.com) Harish Barai (Harish.Barai@larsentoubro.com) Shalmali Dange (Shalmali.Dange@larsentoubro.com) 31
Slide 33: Balance Sheet
Balance Sheet ₹ Billion Mar-23 Mar-24 Incr / (Decr) Equity & Reserves 893 864 -30 Non Controlling Interest 142 162 19 Borrowings - Financial Services 820 761 -59 Development Projects 179 165 -13 Others 187 214 27 Sources of Funds 2221 2166 -55 Fixed Assets (incl ROU assets) 164 185 21 Intangible Ass
Slide 34: Cash Flow
Cash Flow Q4 FY23 Q3 FY24 Q4 FY24 ₹ Billion FY23 FY24 79.0 61.2 80.4 Operating Profit 225.2 249.3 33.1 1.4 96.0 Changes in Working Capital [(Inc)/Dec] 11.2 39.2 (12.9) (14.8) (13.8) Direct Taxes (Paid) / Refund [Net] (51.3) (52.8) 99.2 47.8 162.7 Net Cash from / (used in) Operations (A) 185.2 235.8
Slide 35: Segment Margin – Q4 FY24
Segment Margin – Q4 FY24 Q4 FY23 Q4 FY24 Segment (₹ Crore) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 31222 2331 7.5% 38035 3012 7.9% Energy Projects Segment 7916 824 10.4% 8205 933 11.4% Hi-Tech Manufacturing Segment 2134 419 19.7% 2462 412 16.7% Others
Slide 36: Segment Margin – FY24
Segment Margin – FY24 FY23 FY24 Segment (₹ Crore) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 86717 6064 7.0% 112551 6984 6.2% Energy Projects Segment 24907 2276 9.1% 29539 2946 10.0% Hi-Tech Manufacturing Segment 6535 1174 18.0% 8196 1337 16.3% Others Seg
Slide 37: Breakup of Energy and Hi-Tech Manufacturing Segment
Breakup of Energy and Hi-Tech Manufacturing Segment Q4 FY23 Q4 FY24 Y-o-Y ₹ Bn FY23 FY24 Y-o-Y 88.9 131.2 48% Energy Segment 307.5 737.9 >100% Order Inflow 86.4 126.8 47% Hydrocarbon 290.8 709.0 >100% 2.5 4.2 65% Power 16.7 28.7 72% 79.2 82.0 4% Energy Segment 249.1 295.4 19% Revenue 67.4 75.6 12% H
Slide 38: Breakup of Development Projects and Others Segment
Breakup of Development Projects and Others Segment Q4 FY23 Q4 FY24 Y-o-Y ₹ Bn FY23 FY24 Y-o-Y 12.3 12.6 2% Development Projects 50.2 56.2 12% Revenue 1.9 2.3 23% Hyderabad Metro 6.9 13.9 100% 10.4 10.3 -1% Nabha Power 43.3 42.3 -2% Development Projects 41.6% 17.3% -2430 bps Development Projects 14.2
Slide 39: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q4 FY23 Q4 FY24 ₹ Bn FY23 FY24 0.10 0.09 L&T Power JVs 0.10 (0.04) 0.00 0.00 L&T IDPL Group* (0.76) 0.00 0.01 0.00 Others** (0.28) (0.19) 0.12 0.09 Total (0.94) (0.23) * Profit consolidation of L&T IDPL at PAT level has been discontinued from Q4FY23, post sig