Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q3 FY23 Earnings Presentation
30 slides from Larsen & Toubro's earnings presentation, Jan 30, 2023
Slide 1: Exchange filing cover letter: Analyst Presentation Q3/9M FY23
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/PAM/2023 January 30, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jejeeb
Slide 2: Analyst Presentation Q3 / 9M FY23
Analyst Presentation Q3 / 9M FY23 January 30th, 2023 Mumbai-Ahmedabad High Speed Rail Project
Slide 3: Disclaimer
Veridian Powai (Representative Image) 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 forwar
Slide 4: Key Highlights
Key Highlights Mauritius Light Rail Transit (LRT) 3
Slide 5: Buoyant Quarter: Strong All-Round Performance
Buoyant Quarter: Strong All-Round Performance Liquidity & Top Line Bottom Line ROE Balance Sheet Order Inflows: 21% y-o-y Improved NWC Ratio: @ 19% ROE improves to 12.4% (TTM) Recurring PAT: 20% y-o-y Revenue: 17% y-o-y Healthy Gross & Net Debt Order Book: 14% y-o-y levels Reduced capital intensity
Slide 6: Key Financial Indicators
Key Financial Indicators (Amount in Rs. bn) Q3 FY22 Q2 FY23 Q3 FY23 (y-o-y) (q-o-q) Particulars 9M FY22 9M FY23 (y-o-y) 504 519 607 21% 17% Order Inflow 1191 1544 30% Order Book 3404 3866 14% 396 428 464 17% 8% Revenue 1037 1250 21% 11.4% 11.4% 10.9% EBITDA (%) 11.3% 11.1% 21 22 25 20% 10% Recurring
Slide 7: Group Performance
Group Performance Crude and Vacuum Distillation Unit (CDU/VDU), Vizag 6
Slide 8: Q3/9M FY23 Order Inflow/Order Book
Q3/9M FY23 Order Inflow/Order Book (Amount in Rs. bn) Order Inflow Order Book 21% 30% 14% 9M FY23 Q3 FY22 Q3 FY23 820 454 153 607 1039 505 1544 1021 3404 3866 9M FY22 297 207 504 672 519 1191 2584 2845 9M FY22 9M FY23 Domestic International • Pickup in domestic order inflows in Q3 led by Infrastruct
Slide 9: Group Performance – Sales & Costs
Group Performance – Sales & Costs Remarks for the quarter Q3 FY22 Q3 FY23 % Var Rs Billion 9M FY22 9M FY23 % Var 395.6 463.9 17% Revenue 1036.7 1250.1 21% • Infrastructure and IT&TS businesses drive revenue growth 37% 37% International Rev. 37% 37% • MCO expense variation is reflective of 238.8 278.
Slide 10: Group Performance – Profit Parameters
Group Performance – Profit Parameters Remarks for the quarter Q3 FY22 Q3 FY23 % Var Rs Billion 9M FY22 9M FY23 % Var 45.3 50.7 12% EBITDA 116.9 139.2 19% • Savings due to Metro refinancing is partly (8.1) (8.0) -1% Finance Cost (24.2) (23.9) -1% offset by higher finance cost at Parent (7.3) (8.3) 13
Slide 11: Segment Performance Highlights
Segment Performance Highlights Delhi-Vadodara Expressway (Kanderwasa to Bawadi Village Pkg)y 10
Slide 12: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects Buildings Hydrocarbon & Factories LTI + Mindtree Buildings LTIMindtree & Factories Realty Buildings & Factories Buildings & Factories LTTS Smart World & Power Communications Heavy Civil Digital Platforms Platforms Green EPC I
Slide 13: Order Inflow Composition – Q3 / 9M FY23
Order Inflow Composition – Q3 / 9M FY23 Q3 FY23 Rs. 607 Bn 9M FY23 Rs. 1544 Bn Hi-Tech Hi-Tech Others, 4% Manufacturing, 3% Others, 4% Manufacturing, 5% Energy, 15% Segment Energy, 14% Services, 28% Services, 25% Infrastructure, 53% Infrastructure, 49% Middle East, Middle East, 7% Geography 13% USA
Slide 14: Order Book as on 31-Dec-2022
Order Book as on 31-Dec-2022 Segment Geography Energy, 19% Middle East, 21% Hi-Tech Manufacturing, 5% Infrastructure, 72% Domestic, 74% USA & Europe, 0.4% Others, 4% ROW, 5% Order Book Rs. 3866 Bn 13
Slide 15: Revenue Composition – Q3 / 9M FY23
Revenue Composition – Q3 / 9M FY23 Q3 FY23 Rs. 464 Bn 9M FY23 Rs. 1250 Bn Hi-Tech Others, 3% Manufacturing, 4% Others, 4% Hi-Tech Manufacturing, 3% Segment Energy, 14% Services, 32% Services, 35% Energy, 14% Infrastructure, 47% Infrastructure, 44% Middle East, 12% Middle East, 11% Geography USA & Eu
Slide 16: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in Rs. bn) Net Revenue 20% Net Revenue 30% 219.4 104.1 141.8 335.5 554.9 426.8 183.5 Q3 FY22 Q3 FY23Q1 FY22 9M FY22 Q1 FY23 9M FY23 7.1% EBITDA Margin 7.0% 7.5% EBITDA Margin 6.7% DomesticInternational Domestic International • Robust domestic order inflows • S
Slide 17: Energy Projects Segment
Energy Projects Segment (Amount in Rs. bn) Net Revenue 7% Net Revenue 1% 63.3 104.1 141.8 169.9 168.8 59.5 Q3 FY23 9M FY22 Q1 FY23 9M FY23 Q3 FY22 8.3% EBITDA Margin 8.7% 7.4% EBITDA Margin 8.5% DomesticInternational Domestic • Receipt of domestic orders in Hydrocarbon; deferral of orders continue i
Slide 18: Hi-Tech Manufacturing Segment
Hi-Tech Manufacturing Segment (Amount in Rs. bn) Net Revenue 14% Net Revenue 5% 16.7 104.1 41.8 141.8 44.0 14.7 Q1 FY22 Q3 FY23 9M FY22 Q1 FY23 9M FY23 Q3 FY22 19.9% EBITDA Margin 17.5% 17.8% EBITDA Margin 17.2% DomesticInternational Domestic • Multiple order wins in Heavy Engineering; whereas Defen
Slide 19: IT & Technology Services Segment
IT & Technology Services Segment (Amount in Rs. bn) Net Revenue 25% Net Revenue 28% 105.2 235.0 300.9 84.0 Q3 FY22 Q3 FY23 9M FY22 9M FY23 23.6% EBITDA Margin 19.2% 23.2 % EBITDA Margin 21.0% LTIMindtree LTTS • LTIMindtree revenue growth led by BFSI and Health & Public Services • LTTS revenue growth
Slide 20: Financial Services Segment
Financial Services Segment Q3 Q3 9M 9M % Var Rs. Bn % Var FY22 FY23 FY22 FY23 29.7 33.5 13% Income from Operations 90.1 94.6 5% 3.3 4.5 39% Reported PAT 7.3 11.2 54% 2.1 3.0 44% PAT (Net of NCI) accruing to the group 4.6 7.4 61% Book 855.5 884.3 3% Gross Stage 3 Assets 6.69% 4.21% Net Stage 3 Assets
Slide 21: Development Projects Segment
Development Projects Segment (Amount in Rs. bn) Net Revenue 13% Net Revenue 16% 11.1 32.7 38.0 9.8 Q3 FY22 Q3 FY23 9M FY22 9M FY23 3.2% EBITDA Margin 6.8% 2.3% EBITDA Margin 5.4% Power Development Hyd Metro • Segment includes Hyderabad Metro, Nabha Power & L&T Uttaranchal Hydropower Limited (up to t
Slide 22: Others Segment
Others Segment (Amount in Rs. bn) Net Revenue 1% Net Revenue 15% 104.1 41.5 141.8 47.7 47.7 14.5 14.7 13.8 Q2 FY22 Q2 FY23Q1 FY22 9M FY22 Q1 FY23 9M FY23 14.7% EBITDA Margin 19.6% 17.7% EBITDA Margin 17.4% DomesticInternational Domestic International • Segment comprises Realty, Industrial Valves, Sm
Slide 23: Synchronous Capex Recovery: India & GCC
Synchronous Capex Recovery: India & GCC India GCC • Improved Public Capex spends Strong Oil & Non-Oil Capex spends • Healthy Award to Tender Ratios (Renewables, Green Hydrogen, Water etc) • New investments announced by Private Sector at an all-time high India Macro landscape: Stability amidst contin
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 Rs Billion Mar-22 Dec-22 Incr / (Decr) Equity & Reserves 824 849 25 Non Controlling Interest 130 139 9 Borrowings - Financial Services 841 850 8 Development Projects 181 184 3 Others 213 213 0 Sources of Funds 2188 2235 46 Fixed Assets (incl ROU assets) 137 159 22 Intangible Assets & I
Slide 26: Cash Flow
Cash Flow Q3 FY22 Q2 FY23 Q3 FY23 Rs Bn 9M FY22 9M FY23 46.8 51.6 51.9 Operating Profit 122.3 146.3 (26.9) 5.8 13.3 Changes in Working Capital [(Inc)/Dec] (46.2) (21.8) (11.5) (16.3) (11.5) Direct Taxes (Paid) / Refund [Net] (32.2) (38.4) 8.4 41.2 53.7 Net Cash from / (used in) Operations (A) 43.9 8
Slide 27: Segment Margin – Q3 FY23
Segment Margin – Q3 FY23 Q3 FY22 Q3 FY23 Segment (Rs Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 18345 1298 7.1% 21944 1527 7.0% Energy Projects Segment 5946 492 8.3% 6333 548 8.7% Hi-Tech Manufacturing Segment 1473 293 19.9% 1673 293 17.5% Others Segm
Slide 28: Segment Margin – 9M FY23
Segment Margin – 9M FY23 9M FY22 9M FY23 Segment (Rs Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 42677 3186 7.5% 55495 3733 6.7% Energy Projects Segment 16876 1255 7.4% 16991 1452 8.5% Hi-Tech Manufacturing Segment 4180 745 17.8% 4401 755 17.2% Others
Slide 29: Breakup of Energy and Hi-Tech Manufacturing Segment
Breakup of Energy and Hi-Tech Manufacturing Segment Q3 Q3 9M 9M Y-o-Y Rs Bn Y-o-Y FY22 FY23 FY22 FY23 81.0 90.5 12% Energy Segment 246.6 218.6 -11% Order Inflow 80.1 88.5 11% Hydrocarbon 235.1 204.4 -13% 1.0 2.0 >100% Power 11.5 14.2 23% Energy Segment 59.5 63.3 7% Energy Segment 168.8 169.9 1% Reve
Slide 30: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q3 FY22 Q3 FY23 Rs Bn 9M FY22 9M FY23 0.47 0.02 L&T Power JVs 1.20 (0.01) (0.01) (0.23) L&T IDPL Group (0.72) (0.76) (0.25) 0.14 Others (0.51) (0.29) 0.20 (0.07) Total (0.04) (1.05) 29