Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q3 2024 Earnings Presentation
29 slides from Larsen & Toubro's earnings presentation, Jan 30, 2024
Slide 1: Technology takes a bow
Technology takes a bow TIMELESS HERITAGE MODERN MARVEL Earnings Call Presentation Q3 / 9M FY24 30th January, 2024
Slide 2: Disclaimer
Representative image of Raintree Boulevard, 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 thos
Slide 3: Key Highlights
Key Highlights India’s longest sea bridge “Shri Atal Bihari Vajpayee Trans Harbour Link”, inaugurated on 12th January 2024 3
Slide 4: Buoyant Q3 performance supported by Capex tailwinds
Buoyant Q3 performance supported by Capex tailwinds 25% 19% 20% Aided by strong ordering Driven by a large order book On account of improved activity levels momentum in the Middle East 16.6% 15.2% Vs 19.0% in Dec’22 Improves 280 basis points over Dec’22 Update on New Business initiatives Data Centre
Slide 5: Key Financial Indicators
Key Financial Indicators (Amount in ₹ bn) Q3 FY23 Q3 FY24 (y-o-y) Particulars 9M FY23 9M FY24 (y-o-y) 607 760 25% Order Inflow 1544 2307 49% Order Book 3843 4698 22% 464 551 19% Revenue 1250 1540 23% 10.9% 10.4% EBITDA (%) 11.1% 10.6% 25 29 20% Recurring PAT 64 87 36% 26 29 15% Overall PAT 65 87 34%
Slide 6: Group Performance
Group Performance Sudair Solar Plant, Saudi Arabia 6
Slide 7: Q3 / 9M FY24 Order Inflow/Order Book
Q3 / 9M FY24 Order Inflow/Order Book (Amount in ₹ bn) Order Inflow Order Book 25% 49% 22% 9M FY24 Q3 FY24 1021 254 506 760 928 1379 2307 1835 3843 4698 2863 9M FY23 Q3 FY23 454 153 607 1039 505 1544 2822 31-Dec-22 31-Dec-23 Domestic International • Strong capex momentum in the Middle East drives ord
Slide 8: Group Performance – Revenue to EBITDA
Group Performance – Revenue to EBITDA Remarks for the quarter Q3 FY23 Q3 FY24 % Var Rs Billion 9M FY23 9M FY24 % Var 463.9 551.3 19% Revenue 1250.1 1540.3 23% • Strong execution momentum continues in the Projects and Manufacturing portfolio 37% 44% International Rev. 37% 42% • MCO expense variation
Slide 9: Group Performance – EBITDA to PAT
Group Performance – EBITDA to PAT Remarks for the quarter Q3 FY23 Q3 FY24 % Var Rs Billion 9M FY23 9M FY24 % Var 50.7 57.6 14% EBITDA 139.2 162.6 17% • Finance cost commensurate with level and (8.0) (9.0) 13% Fin. Cost (23.9) (26.2) 9% price of borrowing (8.3) (9.2) 12% Depreciation (26.5) (26.6) 0%
Slide 10: Segment Performance Highlights
Segment Performance Highlights Mansourah-Massarah Gold Processing Project 10
Slide 11: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects LTIMindtree Buildings & Factories Buildings Hydrocarbon & Factories Buildings & Factories Realty LTTS Smart World & Power Heavy Civil Digital Platforms Communications* Green Energy EPC Data Centers Industrial Machinery & Wate
Slide 12: Order Inflow Composition – Q3 / 9M FY24
Order Inflow Composition – Q3 / 9M FY24 Q3 FY24 Rs. 760 Bn 9M FY24 Rs. 2307 Bn Hi-Tech Hi-Tech Manufacturing, 3% Manufacturing, 2% Energy, 17% Others, 3% Others, 2% Energy, 26% Services, 21% Segment Services, 21% Infrastructure, 48% Infrastructure, 57% USA & Europe, USA & Europe, 13% 12% ROW, 2% Geo
Slide 13: Order Book as on 31-Dec-2023
Order Book as on 31-Dec-2023 Segment Geography Energy, 24% Middle East, 36% Hi-Tech Manufacturing, 5% USA & Europe, 0.4% Infrastructure, Others, 3% 68% Domestic, 61% ROW, 3% Order Book : ₹ 4698 Bn 13
Slide 14: Revenue Composition – Q3 / 9M FY24
Revenue Composition – Q3 / 9M FY24 Q3 FY24 Rs. 551 Bn 9M FY24 Rs. 1540 Bn Hi-Tech Others, 3% Hi-Tech Others, 3% Manufacturing, 4% Manufacturing, 4% Segment Energy, 14% Services, 31% Services, 29% Energy, 14% Infrastructure, 50% Infrastructure, 48% Middle East, Middle East, 23% 19% Geography USA & Eu
Slide 15: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in ₹ bn) Net Revenue: 27% Net Revenue: 34% 554.9 745.2 278.5 11.4 219.4 80.5 109.0 200.6 45.3 174.1 198.0 544.6 445.9 Q3 FY23 Q3 FY24 9M FY23 9M FY24 7.0% EBITDA Margin 5.5% 6.7% EBITDA Margin 5.3% Domestic DomesticInternational • Strong ordering momentum in M
Slide 16: Energy Projects Segment
Energy Projects Segment (Amount in ₹ bn) Net Revenue: 24% Net Revenue: 26% 169.9 11.4 213.3 78.6 63.3 59.4 25.1 49.7 92.0 121.3 110.5 38.2 28.9 Q3 FY23 Q3 FY24 9M FY23 9M FY24 8.7% EBITDA Margin 9.7% 8.5% EBITDA Margin 9.4% Domestic DomesticInternational • Receipt of a mega order in Middle East boos
Slide 17: Hi-Tech Manufacturing Segment
Hi-Tech Manufacturing Segment (Amount in ₹ bn) Net Revenue: 23% Net Revenue: 30% 44.0 11.4 57.3 20.7 16.7 9.1 6.9 19.1 3.5 38.2 13.2 13.8 34.9 Q3 FY23 Q3 FY24 9M FY23 9M FY24 17.5% EBITDA Margin 16.7% 17.2% EBITDA Margin 16.1% Domestic DomesticInternational • Receipt of a multiple orders contributes
Slide 18: IT & Technology Services Segment
IT & Technology Services Segment (Amount in ₹ bn) Net Revenue: 5% Net Revenue: 9% 306.2 11.4 332.3 112.0 106.3 21.2 23.7 63.4 69.0 85.0 88.2 242.7 263.2 Q3 FY23 Q3 FY24 9M FY23 9M FY24 18.9% EBITDA Margin 20.7% 20.7% EBITDA Margin 20.5% LTIMindtree Domestic LTTS • LTIMindtree revenue growth led by M
Slide 19: Financial Services Segment Fintech@Scale
Financial Services Segment Fintech@Scale Q3 Q3 % Var Rs. Bn 9M FY23 9M FY24 % Var FY23 FY24 33.5 34.1 2% Income from Operations 94.6 95.1 1% 4.5 6.4 41% Reported PAT 11.2 17.7 57% 3.0 4.2 42% PAT (Net of NCI) accruing to the group 7.4 11.7 58% Lakshya 2026 Goals achieved two years in advance Retaili
Slide 20: Development Projects Segment
Development Projects Segment (Amount in ₹ bn) Net Revenue: 10% Net Revenue: 15% 38.0 11.4 43.6 12.2 11.1 5.1 2.2 11.6 1.8 10.0 32.0 9.2 32.9 Q3 FY23 Q3 FY24 9M FY23 9M FY24 6.8% EBITDA Margin 16.2% 5.4% EBITDA Margin 25.6% DomesticHyd Metro Power Development • Segment includes Hyderabad Metro and Po
Slide 21: Others Segment
Others Segment (Amount in ₹ bn) Net Revenue: 12% Net Revenue: 26% 42.5 53.5 11.4 15.3 13.6 2.0 3.5 4.8 1.3 12.3 13.3 39.0 48.7 Q3 FY23 Q3 FY24 9M FY23 9M FY24 21.6% EBITDA Margin 24.4% 19.2% EBITDA Margin 20.7% Domestic International • Segment comprises Realty, Industrial Valves, Construction Equipm
Slide 22: Projects boost in India & ME (primarily KSA)
Projects boost in India & ME (primarily KSA) INDIA SAUDI ARABIA Growth continuing to be led by investments Saudi Vision 2030 – A decadal capex super cycle Public Capex – Continues to be strong Poised to benefit from investments across the five areas: Rs trn FY20 FY21 FY22 FY23 FY24 BE Upstream & Ene
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 Dec-23 Incr / (Decr) Equity & Reserves 893 819 -74 Non Controlling Interest 142 155 13 Borrowings - Financial Services 820 756 -64 Development Projects 179 166 -13 Others 187 282 95 Sources of Funds 2221 2178 -43 Fixed Assets (incl ROU assets) 164 179 15 Intangible Ass
Slide 25: Cash Flow
Cash Flow Q3 FY23 Q2 FY24 Q3 FY24 ₹ Billion 9M FY23 9M FY24 51.9 55.7 61.2 Operating Profit 146.3 168.8 13.3 (8.0) 1.4 Changes in Working Capital [(Inc)/Dec] (21.8) (56.7) (11.5) (12.6) (14.8) Direct Taxes (Paid) / Refund [Net] (38.4) (39.0) 53.7 35.0 47.8 Net Cash from / (used in) Operations (A) 86
Slide 26: Segment Margin – Q3 FY24
Segment Margin – Q3 FY24 Q3 FY23 Q3 FY24 Segment (₹ Crore) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 21944 1527 7.0% 27845 1522 5.5% Energy Projects Segment 6333 548 8.7% 7864 760 9.7% Hi-Tech Manufacturing Segment 1673 293 17.5% 2066 344 16.7% Others Se
Slide 27: Segment Margin – 9M FY24
Segment Margin – 9M FY24 9M FY23 9M FY24 Segment (₹ Crore) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 55495 3733 6.7% 74516 3972 5.3% Energy Projects Segment 16991 1452 8.5% 21334 2013 9.4% Hi-Tech Manufacturing Segment 4401 755 17.2% 5734 925 16.1% Other
Slide 28: Breakup of Energy and Hi-Tech Manufacturing Segment
Breakup of Energy and Hi-Tech Manufacturing Segment Q3 FY23 Q3 FY24 Y-o-Y ₹ Bn 9M FY23 9M FY24 Y-o-Y 90.5 132.8 47% Energy Segment 218.6 606.7 >100% Order Inflow 88.5 123.8 40% Hydrocarbon 204.4 582.2 >100% 2.0 9.0 >100% Power 14.2 24.5 73% 63.3 78.6 24% Energy Segment 169.9 213.3 26% Revenue 53.6 6
Slide 29: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q3 FY23 Q3 FY24 ₹ Bn 9M FY23 9M FY24 0.02 (0.04) L&T Power JVs (0.01) (0.13) (0.23) 0.00 L&T IDPL Group* (0.76) 0.00 0.14 0.03 Others** (0.30) (0.19) (0.07) (0.02) Total (1.06) (0.32) * Profit consolidation of L&T IDPL at PAT level has been discontinued from