Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q3 FY22 Earnings Presentation
31 slides from Larsen & Toubro's earnings presentation, Jan 28, 2022
Slide 1: Exchange filing cover letter for Analyst Presentation
9 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: +97 22 6752 5893 www.Larsentoubro. com SEC/PAM/DEC2021/2022 January 28, 2022 The Secretary National Stock Exchange Of India Limited BSE
Slide 2: Analyst Presentation Q3/9M FY22
LARSEN & TOUBRO Analyst Presentation Q3/9M FY22 January 28th, 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
01 Key Highlights EPC Projects Hi-Tech Manufacturing Services 3
Slide 5: Performance parameters improves as Indian economy re-integrates back in Q3
Performance parameters improves as Indian economy re-integrates back in Q3 Balancing Stable group margin “execution growth” performance Healthy Order Subdued award & “working capital despite commodity Book finalization intensity” headwinds in the “P&M” portfolio Strong demand Divestment of LTFH busi
Slide 6: Key Financial Indicators
Key Financial Indicators (Rs. bn) Q3 Q2 Q3 9M 9M (y-o-y) (q-o-q) Particulars (y-o-y) FY21 FY22 FY22 FY21 FY22 732 421 504 -31% 20% Order Inflow 1248 1191 -5% Order Book 3311 3404 3% 356 348 396 11% 14% Revenue 879 1037 18% 12.0% 11.5% 11.5% EBITDA (%) 10.5% 11.3% 23 17 21 -9% 19% Operational PAT 35
Slide 7: Group Performance
02 Group Performance EPC Projects Hi-Tech Manufacturing Services 6
Slide 8: Q3/9M FY22 Order Inflow/Order Book
Q3/9M FY22 Order Inflow/Order Book (Amount in Rs. bn) Order Inflow Order Book 31% 5% 3% 9M FY22 Q3 FY21 Q3 FY22 673 504 820 299 205 674 517 1191 3311 3404 9M FY21 627 105 732 953 295 1248 2638 2584 9M FY21 9MFY22 Domestic International • Q3 Order Inflows primarily from Infrastructure & Hydrocarbon.
Slide 9: Group Performance – Sales & Costs
Group Performance – Sales & Costs Remarks for the Quarter Q3 FY21 Q3 FY22 % Var Rs. Billion 9M FY21 9M FY22 % Var • Projects and IT&TS businesses drive revenue growth 356.0 395.6 11% Revenue 878.9 1036.7 18% • MCO expense variation is reflective of job progress, revenue mix and higher input 36% 37%
Slide 10: Group Performance – Profit Parameters
Group Performance – Profit Parameters Remarks for the Quarter 9M 9M Q3 FY21 Q3 FY22 % Var Rs. Billion % Var FY21 FY22 42.8 45.3 6% EBITDA 92.4 117.0 27% (9.6) (8.1) -15% Fin. Cost (30.6) (24.2) -21% • Finance cost commensurate with reduced level of borrowing at parent (7.0) (7.3) 4% Depreciation (20
Slide 11: Segment Performance Analysis
03 Segment Performance Analysis EPC Projects Hi-Tech Manufacturing Services 10
Slide 12: Segment Composition
Segment Composition Heavy Defence Hydrocarbon Others Infrastructure Power Engineering (HE) Engineering Buildings & Factories (B&F) EPC- Coal & Gas Process Plant Equipment Defence Realty Onshore Transportation Infra (TI) Thermal Power Plant Nuclear Power Plant Aerospace Industrial Products & Offshore
Slide 13: Order Inflow Composition
Order Inflow Composition Q3 FY22 Rs. 504 Bn 9M FY22 Rs. 1191 Bn Power, 0.2% HE, 3% Power, 1% HE, 2% Defence, 2% Defence, 3% Hydrocarbon, Services, 25% Hydrocarbon, Services, 30% 20% 16% Others, 3% Infrastructure, Infrastructure, Others, 4% 50% 41% Middle Middle East, 24% East, 23% USA & USA & Europe
Slide 14: Order Book Composition as on 31-Dec-21
Order Book Composition as on 31-Dec-21 HE, 2% Power, 3% Defence, 2% Middle East, Hydrocarbon, 17% 16% USA & Europe, Infrastructure, 0.4% 73% Others, 4% Domestic, 76% ROW, 7% Order Book Rs. 3404 Bn EPC Projects Hi-Tech Manufacturing Services 13
Slide 15: Revenue Composition
Revenue Composition Q3 FY22 Rs. 396 Bn 9M FY22 Rs.1037 Bn Power, 3% Power, 3% HE, 2% HE, 2% Defence, 2% Defence, 2% Services, 31% Services, 35% Hydrocarbon, Hydrocarbon, 12% 13% Infrastructure, Others, 4% Infrastructure, Others, 4% 46% 41% Middle Middle East, 11% USA & East, 12% USA & Europe, Europe
Slide 16: Infrastructure Segment
Infrastructure Segment (Amount in Rs. bn) Net Revenue 16% Net Revenue 21% 183.5 426.8 351.9 158.3 Q3 FY21 Q3 FY22 9M FY21 9M FY22 6.2% EBITDA Margin 7.1% 6.3% EBITDA Margin 7.5% Domestic International • Delays in awards finalization despite robust order announcements, tendering activity and improved
Slide 17: Power Segment
Power Segment (Amount in Rs. bn) Net Revenue 19% Net Revenue 50% 10.7 19.6 29.4 9.0 Q3 FY21 Q3 FY22 9M FY21 9M FY22 2.0% EBITDA Margin 4.2% 2.2% EBITDA Margin 3.2% Domestic International • Subdued ordering environment in thermal business • Opening order book drives healthy execution • Higher EBITDA
Slide 18: Heavy Engineering Segment
Heavy Engineering Segment (Amount in Rs. bn) Net Revenue 7% Net Revenue 8% 7.3 6.8 17.1 18.6 Q3 FY21 Q3 FY22 9M FY21 9M FY22 20.0% EBITDA Margin 15.6% 14.2% EBITDA Margin 16.3% Domestic International • Multiple order wins in Refinery, Oil & Gas vertical buoys order book • Tapering of certain jobs im
Slide 19: Defence Engineering Segment
Defence Engineering Segment (Amount in Rs. bn) Net Revenue 23% Net Revenue 3% 10.2 22.6 23.2 7.9 Q3 FY21 Q3 FY22 9M FY21 9M FY22 16.9% EBITDA Margin 23.6% 18.6% EBITDA Margin 19.0% Domestic International • Receipt of multiple orders in Q3 • Slow progress due to customer delays and supply chain disru
Slide 20: Hydrocarbon Segment
Hydrocarbon Segment (Amount in Rs. bn) Net Revenue 11% Net Revenue 21% 48.8 115.1 139.4 44.1 Q3 FY21 Q3 FY22 9M FY21 9M FY22 12.2% EBITDA Margin 9.6% 9.1% EBITDA Margin 9.1% Domestic International • Receipt of high value international orders buoys order book • Progress in onshore jobs drive revenues
Slide 21: Developmental Projects Segment
Developmental Projects Segment (Amount in Rs. bn) Net Revenue 20% Net Revenue 30% 9.8 25.1 32.7 8.1 Q3 FY21 Q3 FY22 9M FY21 9M FY22 0.1% EBITDA Margin 3.2% 4.0% EBITDA Margin 2.3% Power Development Hyd Metro • Segment includes Power Development business (Thermal & Hydel up to the date of divestment
Slide 22: IT & Technology Segment
IT & Technology Segment (Amount in Rs. bn) Net Revenue 29% Net Revenue 26% 84.0 84.0 187.0 235.0 65.1 65.1 Q3 FY21 Q3 FY22 9M FY21 9M FY22 25.5% EBITDA Margin 23.8% 23.2 % EBITDA Margin 23.4% LTI LTTS Mindtree • LTI revenue growth led by Hi-Tech, Media & Entertainment, BFS, Manufacturing and CPG, Re
Slide 23: Others Segment
Others Segment (Amount in Rs. bn) Net Revenue 27% Net Revenue 3% 19.9 40.2 41.6 14.6 Q3 FY21 Q3 FY22 9M FY21 9M FY22 34.3% EBITDA Margin 13.7% 24.1% EBITDA Margin 16.5% Domestic International • Segment comprises Realty, Industrial Machinery, Valves, Smart World & Communications & Edutech business •
Slide 24: Financial Services Segment
Financial Services Segment Q3 Q3 9M 9M % Var Rs. Bn % Var FY21 FY22 FY21 FY22 34.0 29.7 -13% Income from Operations 100.3 90.1 -10% 2.9 3.3 12% Reported PAT 7.0 7.3 3% 1.9 2.1 12% PAT (Net of NCI) accruing to the group 4.5 4.6 3% Book 1001.0 855.5 -15% Gross Stage 3 Assets 5.12% 5.91% Net Stage 3 As
Slide 25: Balance between need to support recovery & macro economic stability
Balance between “need to support recovery” & “macro economic stability” - a central challenge for 2022 Global trends to “Watch” India’s “Constructive Key drivers for L&T Outlook” ➢ Pandemic to Endemic ➢ Capex thrust ➢ Enhanced fiscal focus towards “Public ➢ Inflation Capex” spend is the key ➢ Return
Slide 26: 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 25
Slide 27: Balance Sheet
Balance Sheet Rs. Billion Mar-21 Dec-21 Incr / (Decr) Equity & Reserves 759 787 28 Non Controlling Interest 121 130 10 Borrowings - Financial Services 865 812 -53 Development Projects 206 185 -21 Others 255 225 -30 Sources of Funds 2205 2140 -65 Fixed Assets (incl ROU assets) 138 134 -4 Intangible A
Slide 28: Cash Flow
Cash Flow Q3 FY21 Q2 FY22 Q3 FY22 Rs. Bn 9M FY21 9MFY22 42.8 41.9 46.9 Operating Profit 96.2 122.4 11.4 12.2 (26.3) Changes in Working Capital [(Inc)/Dec] 6.4 (48.7) (10.5) (13.8) (11.6) Direct Taxes (Paid) / Refund [Net] (22.3) (32.3) 43.7 40.4 9.0 Net Cash from / (used in) Operations (A) 80.2 41.4
Slide 29: Segment Margin – Q3 FY22
Segment Margin – Q3 FY22 Q3 FY21 Q3 FY22 Segment (Rs. Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Segment 15828 982 6.2% 18345 1298 7.1% Power Segment 897 18 2.0% 1065 45 4.2% Hydrocarbon Segment 4407 539 12.2% 4880 469 9.6% Heavy Engineering Segment 733 146 20.0% 683
Slide 30: Segment Margin – 9M FY22
Segment Margin – 9M FY22 9M FY21 9M FY22 Segment (Rs. Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Segment 35191 2207 6.3% 42677 3186 7.5% Power Segment 1958 43 2.2% 2938 94 3.2% Hydrocarbon Segment 11512 1045 9.1% 13938 1273 9.1% Heavy Engineering Segment 1712 243 14.2
Slide 31: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q3 FY21 Q3 FY22 Rs. Bn 9M FY21 9M FY22 0.53 0.47 L&T Power JVs 1.06 1.20 (0.30) (0.01) L&T IDPL Group (1.45) (0.72) 0.00 - L&T Special Steels and Heavy Forgings (0.73) - (0.14) (0.25) Others (0.34) (0.51) 0.09 0.20 Total (1.45) (0.04) EPC Projects Hi-Tech Man