Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q2 2025 Earnings Presentation
30 slides from Larsen & Toubro's earnings presentation, Oct 30, 2024
Slide 1: Earnings Call Presentation Q2 / H1 FY25
Earnings Call Presentation Q2 / H1 FY25 30th October 2024 Dwarka Expressway
Slide 2: Disclaimer
Reactor Vessel Package at A M Naik Heavy Engineering Complex Disclaimer 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 materiall
Slide 3: Key Highlights
Key Highlights Hotel for a prestigious client in Colombo, Sri Lanka 3
Slide 4: Q2 FY25 Highlights: Strong Execution, Stable Margin & Robust Cash Flows
Q2 FY25 Highlights: Strong Execution, Stable Margin & Robust Cash Flows ₹ 800 bn Order Inflow Sequential growth @ 13% ₹ 5104 bn Order Book A new milestone 01 ₹ 616 bn ROE Revenue up 21% yoy basis @ 16.1% 03 up 140 bps qoq 7.6% & 80 bps yoy P&M Margin up 20 bps yoy 12.2% NWC% to Sales 05 Sequential i
Slide 5: Key Financial Indicators
Key Financial Indicators (Amount in ₹ bn) Q2 FY24 Q2 FY25 (y-o-y) Particulars H1 FY24 H1 FY25 (y-o-y) 892 800 -10% Order Inflow 1547 1510 -2% Order Book 4507 5104 13% 510 616 21% Revenue 989 1167 18% 11.0% 10.3% EBITDA (%) 10.6% 10.3% 32 34 5% Overall PAT 57 62 8% Particulars H1 FY24 H1 FY25 Net Wor
Slide 6: Group Performance
Group Performance Full Conversion Hydrocracker Unit (FCHCU) for a reputed client in Visakhapatnam 6
Slide 7: Q2 / H1 FY25 Order Inflow/Order Book
Q2 / H1 FY25 Order Inflow/Order Book (Amount in ₹ bn) Order Inflow Order Book 10% 2% 13% Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 1594 299 501 800 683 827 1510 2055 4507 5104 3049 295 597 892 673 873 1547 2914 30-Sep-23 30-Sep-24 Domestic International • Strong international ordering momentum continues • Int
Slide 8: Group Performance – Revenue to EBITDA
Group Performance – Revenue to EBITDA Remarks for the quarter Q2 FY24 Q2 FY25 % Var ₹ Billion H1 FY24 H1 FY25 % Var • Robust execution momentum in Infrastructure, Hydrocarbon and Precision Engineering & Systems 510.2 615.5 21% Revenue 989.1 1166.7 18% business drive revenue growth 43% 52% Internatio
Slide 9: Group Performance – EBITDA to PAT
Group Performance – EBITDA to PAT Remarks for the quarter Q2 FY24 Q2 FY25 % Var Rs Billion H1 FY24 H1 FY25 % Var • Finance costs in line with PY 56.3 63.6 13% EBITDA 105.0 119.8 14% • Increase in depreciation is due to higher capex (8.6) (8.8) 2% Finance Cost (17.2) (17.5) 2% incurred to execute lar
Slide 10: Segment Performance Analysis
Segment Performance Analysis Steel Melting Shop for a reputed client in Maharashtra 10
Slide 11: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects LTIMindtree Buildings & Factories Buildings Hydrocarbon & Factories Buildings & Factories Realty LTTS CarbonLite Solutions Industrial Machinery & Heavy Civil Digital Platforms Products Green Energy EPC Data Centers Water Smar
Slide 12: Order Inflow Composition – Q2 / H1 FY25
Order Inflow Composition – Q2 / H1 FY25 Q2 FY25 Rs. 800 Bn H1 FY25 Rs. 1510 Bn Hi-Tech Hi-Tech Manufacturing, 5% Manufacturing, 5% Energy, 10% Others, 2% Others, 2% Services, 23% Segment Energy, 11% Services, 21% Infrastructure, 62% Infrastructure, 59% ROW, 14% ROW, 8% Geography USA & Europe, USA &
Slide 13: Order Book as on 30-Sep-2024
Order Book as on 30-Sep-2024 Segment Geography Energy, 23% Middle East, 34% Hi-Tech Manufacturing, 7% India, 60% Infrastructure, Others, 3% ROW, 6% 67% Order Book : ₹ 5104 Bn 13
Slide 14: Revenue Composition – Q2 / H1 FY25
Revenue Composition – Q2 / H1 FY25 Q2 FY25 Rs.616 Bn H1 FY25 Rs. 1167 Bn Hi-Tech Hi-Tech Others, 3% Manufacturing, 3% Manufacturing, 3% Others, 3% Services, 29% Segment Services, 28% Energy, 15% Energy, 14% Infrastructure, Infrastructure, 50% 52% USA & Europe, USA & Europe, ROW, 2% ROW, 3% 18% 17% G
Slide 15: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in ₹ bn) Net Revenue: 30% Net Revenue: 26% 466.7 588.6 319.5 246.1 120.1 145.1 237.5 69.8 351.1 176.3 174.4 346.6 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 5.4% EBITDA Margin 6.0% 5.2% EBITDA Margin 5.9% Domestic DomesticInternational Remarks for the quarter • Strong in
Slide 16: Energy Projects Segment
Energy Projects Segment* (Amount in ₹ bn) Net Revenue: 31% Net Revenue: 29% 134.7 173.7 88.7 67.9 55.1 61.0 39.2 63.1 71.6 118.6 28.7 27.7 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 9.5% EBITDA Margin 8.8% 9.3% EBITDA Margin 8.7% Domestic DomesticInternational Remarks for the quarter • Decline in order inflow
Slide 17: Hi-Tech Manufacturing Segment
Hi-Tech Manufacturing Segment * (Amount in ₹ bn) Net Revenue: 9% Net Revenue: 7% 36.7 39.1 18.9 20.6 7.3 3.1 5.6 12.2 17.5 24.5 13.3 31.8 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 14.9% EBITDA Margin 12.8% 15.8% EBITDA Margin 15.0% Domestic DomesticInternational Remarks for the quarter • Precision Engineering
Slide 18: IT & Technology Services Segment
IT & Technology Services Segment (Amount in ₹ bn) Net Revenue: 6% Net Revenue: 6% 220.3 233.0 111.8 118.0 45.3 48.2 23.3 24.1 88.5 93.8 184.7 175.0 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 20.2% EBITDA Margin 21.0% 20.4% EBITDA Margin 20.5% LTIMindtree Domestic LTTS Remarks for the quarter • LTIMindtree reve
Slide 19: Financial Services Segment
Financial Services Segment Q2 Q2 H1 H1 % Var Rs. Bn % Var FY24 FY25 FY24 FY25 30.8 38.4 24% Income from Operations 61.0 75.0 23% 5.9 7.0 17% PAT 11.3 13.8 23% 3.9 4.6 17% PAT (Net of NCI) accruing to the group 7.5 9.1 22% Book 787.3 930.1 18% Retail Book % 88% 96% 5 Pillar strategy to deliver on Lak
Slide 20: Development Projects Segment
Development Projects Segment * (Amount in ₹ bn) Net Revenue: 25% Net Revenue: 14% 31.4 27.1 18.5 13.8 4.6 7.3 9.4 2.3 11.2 11.5 22.0 22.5 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 38.7% EBITDA Margin 15.5% 29.2% EBITDA Margin 16.2% Power Development DomesticHyderabad Metro Remarks for the quarter • Segment in
Slide 21: Others Segment
Others Segment * (Amount in ₹ bn) Net Revenue: 2% Net Revenue: 21% 38.2 30.2 16.2 16.5 2.8 4.5 1.8 2.2 14.4 14.3 25.7 35.4 Q2 FY24 Q2 FY24 Q2 FY25 Q2 FY25 H1 FY24 H1 FY25 20.0% EBITDA Margin 25.1% 19.2% EBITDA Margin 24.3% Domestic DomesticInternational Remarks for the quarter • Segment majorly comp
Slide 22: An Expansive Group Portfolio: The Future Engines of Growth
An Expansive Group Portfolio: The Future Engines of Growth Manufacturing Development Manufacturing Balance Sheet Manufacturing Manufacturing Manufacturing Services Projects Manufacturing Portfolio Management • Continued Capex • Defence equipment • Revival of IT&TS spends • Real Estate • Efficient Wo
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-24 Sep-24 Incr / (Decr) Equity & Reserves 864 892 29 Non Controlling Interest 162 168 6 Borrowings - Financial Services 761 847 86 Development Projects 165 166 1 Others 214 223 8 Sources of Funds 2166 2296 130 Fixed Assets (incl ROU assets) 185 188 3 Intangible Assets & I
Slide 25: Cash Flow
Cash Flow Q2 FY24 Q1 FY25 Q2 FY25 ₹ Billion H1 FY24 H1 FY25 55.7 57.1 63.2 Operating Profit 107.6 120.3 (8.0) (48.6) 28.3 Changes in Working Capital [(Inc)/Dec] (58.3) (20.3) (12.6) (13.5) (14.4) Direct Taxes (Paid) / Refund [Net] (24.2) (28.0) 35.0 (5.0) 77.1 Net Cash from / (used in) Operations (A
Slide 26: Segment Details – Q2 FY25
Segment Details – Q2 FY25 Q2 FY24 Q2 FY25 Segment (₹ Crore) EBITDA EBITDA Order Inflow Net Revenue EBITDA Order Inflow Net Revenue EBITDA % % Infrastructure Projects Segment 27990 24613 1332 5.4% 49522 31954 1926 6.0% Energy Projects Segment 40141 6788 646 9.5% 7759 8873 778 8.8% Hi-Tech Manufacturi
Slide 27: Segment Details – H1 FY25
Segment Details – H1 FY25 H1 FY24 H1 FY25 Segment (₹ Crore) EBITDA EBITDA Order Inflow Net Revenue EBITDA Order Inflow Net Revenue EBITDA % % Infrastructure Projects Segment 68041 46671 2450 5.2% 89575 58862 3479 5.9% Energy Projects Segment 47386 13470 1254 9.3% 16551 17368 1519 8.7% Hi-Tech Manufa
Slide 28: Breakup of Energy and Hi-Tech Manufacturing Segment
Breakup of Energy and Hi-Tech Manufacturing Segment Q2 FY24 Q2 FY25 Y-o-Y ₹ Bn H1 FY24 H1 FY25 Y-o-Y 401.4 77.6 -81% Energy Segment 473.9 165.5 -65% Order Inflow 388.1 75.6 -81% Hydrocarbon 458.4 160.9 -65% 13.3 2.0 -85% CarbonLite Solutions 15.5 4.6 -71% 67.9 88.7 31% Energy Segment 134.7 173.7 29%
Slide 29: Breakup of Development Projects and Others Segment
Breakup of Development Projects and Others Segment Q2 FY24 Q2 FY25 Y-o-Y ₹ Bn H1 FY24 H1 FY25 Y-o-Y 18.5 13.8 -25% Development Projects 31.4 27.1 -14% Revenue 7.3 2.3 -68% Hyderabad Metro 9.4 4.6 -51% 11.2 11.5 3% Nabha Power 22.0 22.5 2% Development Projects 38.7% 15.5% -2320 bps Development Projec
Slide 30: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q2 FY24 Q2 FY25 ₹ Bn H1 FY24 H1 FY25 0.04 0.03 L&T Power JVs (0.09) (0.02) (0.15) (0.18) L&T Hydrocarbon JVs (0.28) (0.08) 0.02 0.01 Others** 0.06 0.01 (0.10) (0.14) Total (0.31) (0.09) ** Others mainly includes Precision Engineering & Systems JVs 30