Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q4 FY23 Earnings Presentation
33 slides from Larsen & Toubro's earnings presentation, May 10, 2023
Slide 1: Exchange filing cover letter: Analyst Presentation Q4 / 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/2023 May 10, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jejeebhoy Towe
Slide 2: Earnings Call Presentation Q4 / FY23
Earnings Call Presentation Q4 / FY23 10th May, 2023
Slide 3: Disclaimer
L&T Chennai Innovation Campus(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
Slide 4: Key Highlights
Key Highlights Birsa Munda International Hockey Stadium in Rourkela 3
Slide 5: “Buoyant” performance amidst Capex tailwinds
“Buoyant” performance amidst Capex tailwinds Record Record High!! High!! Key milestones achieved Rs 2 trillion+ ≈ Rs 4 trillion during the year Order Inflow in FY23 Order Book 19% y-o-y growth as on 31st March 23 5 Year 5 Year High!! 16.1% Best!! Healthy execution ramp 17% y-o-y 16.1% NWC / Revenue
Slide 6: Key Financial Indicators
Key Financial Indicators (Amount in Rs. bn) Q4 FY22 Q4 FY23 (y-o-y) Particulars FY22 FY23 (y-o-y) 739 761 3% Order Inflow 1930 2305 19% Order Book 3576 3995 12% 529 583 10% Revenue 1565 1833 17% 12.3% 11.7% EBITDA (%) 11.6% 11.3% 36 40 10% Recurring PAT 86 104 21% 36 40 10% Overall PAT 87 105 21% Pa
Slide 7: Group Performance
Group Performance Western Dedicated Freight Corridor - CTP 3R (Iqbalgarh to Makarpura) 6
Slide 8: Q4 / FY23 Order Inflow/Order Book
Q4 / FY23 Order Inflow/Order Book (Amount in Rs. bn) Order Inflow Order Book 3% 19% 12% Q4 FY22 Q4 FY23 952 1118 FY23 401 360 761 1440 865 2305 3576 3995 FY22 1089 841 1930 2624 2877 417 322 739 FY22 FY23 Domestic International • Healthy awarding momentum across India and GCC in Q4 • Strong prospect
Slide 9: Group Performance – Sales & Costs
Group Performance – Sales & Costs Remarks for the quarter Q4 FY22 Q4 FY23 % Var Rs Billion FY22 FY23 % Var 528.5 583.4 10% Revenue 1565.2 1833.4 17% • Strong execution momentum in Hydrocarbon, Hi-Tech Manufacturing and IT&TS 33% 39% International Rev. 36% 38% • MCO expense variation is reflective of
Slide 10: Group Performance – Profit Parameters
Group Performance – Profit Parameters Remarks for the quarter Q4 FY22 Q4 FY23 % Var Rs Billion FY22 FY23 % Var 65.2 68.3 5% EBITDA 182.0 207.5 14% • Higher finance cost due to increase in rate of (7.1) (8.1) 15% Fin. Cost (31.3) (32.1) 3% borrowing (7.7) (8.5) 11% Depreciation (29.5) (35.0) 19% • Ot
Slide 11: Segment Performance Highlights
Segment Performance Highlights New Living Quarter (LQ) & Revamp at ‘NQ Complex’ (NLRNC-RT2) Project 10
Slide 12: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects Buildings Hydrocarbon & Factories Buildings LTIMindtree LTI & Factories + Mindtree Buildings & Factories Realty Buildings & Factories LTTS Smart World & Power Communications* Heavy Civil Digital Platforms Platforms Green EPC
Slide 13: Order Inflow Composition – Q4 / FY23
Order Inflow Composition – Q4 / FY23 Q4 FY23 Rs. 761 Bn FY23 Rs. 2305 Bn Hi-Tech Manufacturing, Hi-Tech Others, 4% 11% Others, 3% Manufacturing, 7% Energy, 12% Segment Energy, 13% Services, 25% Services, 20% Infrastructure, 54% Infrastructure, 51% Middle East, 32% Middle East, Geography 19% USA & Eu
Slide 14: Order Book as on 31-Mar-2023
Order Book as on 31-Mar-2023 Segment Geography Energy, 18% Middle East, 24% Hi-Tech Manufacturing, 7% Infrastructure, 71% Domestic, 72% USA & Europe, 0.6% Others, 4% ROW, 3% Order Book Rs. 3995 Bn 13
Slide 15: Revenue Composition – Q4 / FY23
Revenue Composition – Q4 / FY23 Q4 FY23 Rs. 583 Bn FY23 Rs. 1833 Bn Hi-Tech Hi-Tech Others, 4% Manufacturing, 4% Others, 3% Manufacturing, 3% Services, 32% Segment Energy, 14% Energy, 14% Services, 26% Infrastructure, 53% Infrastructure, 47% Middle East, 17% Middle East, 13% Geography USA & Europe,
Slide 16: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in Rs. bn) Net Revenue 5% Net Revenue 20% 104.1 141.8 867.2 312.2 724.0 297.3 Q4 FY22 Q4 FY23Q1 FY22 FY22 Q1 FY23 FY23 9.2% EBITDA Margin 7.5% 8.2% EBITDA Margin 7.0% DomesticInternational Domestic International • Robust domestic ordering momentum continues in
Slide 17: Energy Projects Segment
Energy Projects Segment (Amount in Rs. bn) Net Revenue 18% Net Revenue 6% 104.1 141.8 79.2 168.8 235.9 249.1 67.2 Q4 FY23 FY22 Q1 FY23 FY23 Q4 FY22 8.8% EBITDA Margin 10.4% 7.8% EBITDA Margin 9.1% DomesticInternational Domestic • Receipt of multiple international orders in Q4 buoys Hydrocarbon order
Slide 18: Hi-Tech Manufacturing Segment
Hi-Tech Manufacturing Segment (Amount in Rs. bn) Net Revenue 21% Net Revenue 10% 21.3 104.1 16.7 59.4 141.8 65.3 14.7 17.6 Q1 FY22 Q4 FY23 FY22 Q1 FY23 FY23 Q4 FY22 24.0% EBITDA Margin 19.7% 19.6% EBITDA Margin 18.0% DomesticInternational Domestic International • Order inflow growth in Defence Engin
Slide 19: IT & Technology Services Segment
IT & Technology Services Segment (Amount in Rs. bn) Net Revenue 21% Net Revenue 26% 106.4 322.7 407.4 87.6 Q4 FY22 Q4 FY23 FY22 FY23 23.7% EBITDA Margin 19.9% 23.3 % EBITDA Margin 20.7% LTIMindtree LTTS Digital Businesses • LTIMindtree revenue growth led by BFSI and Manufacturing & Resources • LTTS
Slide 20: Financial Services Segment
Financial Services Segment RETAIL. DIGITAL. SUSTAINABLE. Q4 Q4 % Var Rs. Bn FY22 FY23 % Var FY22 FY23 29.6 31.2 5% Income from Operations 119.7 125.7 5% 3.4 5.0 46% Reported PAT 10.7 16.2 52% 2.2 3.3 53% PAT (Net of NCI) accruing to the group 6.8 10.7 58% Book 883.4 808.9 -8% Gross Stage 3 Assets 4.
Slide 21: Development Projects Segment
Development Projects Segment (Amount in Rs. bn) Net Revenue 12% Net Revenue 15% 43.7 32.7 50.2 12.3 11.0 Q4 FY22 Q4 FY23 FY22 FY23 2.4% EBITDA Margin 41.6% 2.3% EBITDA Margin 14.2% Power Development Hyd Metro • Segment includes Hyderabad Metro, Nabha Power & L&T Uttaranchal Hydropower Limited (up to
Slide 22: Others Segment
Others Segment (Amount in Rs. bn) Net Revenue 14% Net Revenue 15% 104.1 59.8 141.8 68.4 47.7 20.7 18.2 Q4 FY22 Q4 FY23Q1 FY22 FY22 Q1 FY23 FY23 20.7% EBITDA Margin 19.8% 18.6% EBITDA Margin 18.1% DomesticInternational Domestic International • Segment comprises Realty, Industrial Valves, Smart World
Slide 23: Balance Sheet
Balance Sheet Rs Billion Mar-22 Mar-23 Incr / (Decr) Equity & Reserves 824 893 69 Non Controlling Interest 130 142 13 Borrowings - Financial Services 841 820 -22 Development Projects 181 179 -2 Others 213 187 -26 Sources of Funds 2188 2221 32 Fixed Assets (incl ROU assets) 137 164 27 Intangible Asse
Slide 24: Cash Flow
Cash Flow Q4 FY22 Q3 FY23 Q4 FY23 Rs Bn FY22 FY23 67.1 51.9 79.0 Operating Profit 189.5 225.2 52.5 13.3 33.1 Changes in Working Capital [(Inc)/Dec] 6.2 11.2 (13.2) (11.5) (12.9) Direct Taxes (Paid) / Refund [Net] (45.4) (51.3) 106.4 53.7 99.2 Net Cash from / (used in) Operations (A) 150.3 185.2 (12.
Slide 25: Outlook
OUTLOOK EPC PROJECTS | HI-TECH MANUFACTURING | SERVICES S) LARSEN & TOUBRO >.
Slide 26: “Stability” amidst Macro Volatility
“Stability” amidst Macro Volatility WORLD (-) (-) INDIA (+) (+) • Continuing military • “Manufacturing” • Tax buoyancy • Digitalization trends conflicts Competitiveness The “Core” of • Prudent policy • China + 1 Trends • Supply chain issues • Skill shortage ✓ Balanced Portfolio management • Energy T
Slide 27: Thank You
Thank You Investor Relations: P Ramakrishnan (P.Ramakrishnan@larsentoubro.com) Harish Barai (Harish.Barai@larsentoubro.com) Shalmali Dange (Shalmali.Dange@larsentoubro.com) 26
Slide 28: Segment Margin – Q4 FY23
Segment Margin – Q4 FY23 Q4 FY22 Q4 FY23 Segment (Rs Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 29727 2735 9.2% 31222 2331 7.5% Energy Projects Segment 6717 588 8.8% 7916 824 10.4% Hi-Tech Manufacturing Segment 1762 422 24.0% 2134 419 19.7% Others Seg
Slide 29: Segment Margin – FY23
Segment Margin – FY23 FY22 FY23 Segment (Rs Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 72404 5920 8.2% 86717 6064 7.0% Energy Projects Segment 23593 1843 7.8% 24907 2276 9.1% Hi-Tech Manufacturing Segment 5942 1167 19.6% 6535 1174 18.0% Others Segment
Slide 30: Return ratios improve in the Projects & Manufacturing portfolio
Return ratios improve in the Projects & Manufacturing (P&M)* portfolio Rs crore FY19 FY20 FY21 FY22 FY23 Growth over FY19 Gross Segment Revenue (P&M) 104661 106034 94639 109800 127012 21% Y-o-Y% 1% -11% 16% 16% Segment Result (PBIT) 8432 9301 8230 8842 9348 11% Y-o-Y% 10% -12% 7% 6% Segment Result /
Slide 31: The Journey of Return ratios at Group level
The Journey of Return ratios at Group level Rs crore Financial Development Unallocable FY23 P&M IT&TS Total Services Projects Corporate Gross Segment Revenue 127012 40988 12575 5029 - 183341# Segment Result (PBIT) (A) 9348 7172 2259 392 1009 20180 Segment Funds Employed (B) 39649 29106 19783 19754 2
Slide 32: Breakup of Energy and Hi-Tech Manufacturing Segment
Breakup of Energy and Hi-Tech Manufacturing Segment Q4 Q4 Y-o-Y Rs Bn FY22 FY23 Y-o-Y FY22 FY23 76.1 88.9 17% Energy Segment 322.7 307.5 -5% Order Inflow 74.0 86.4 17% Hydrocarbon 309.1 290.8 -6% 2.1 2.5 23% Power 13.6 16.7 23% 67.2 79.2 18% Energy Segment 235.9 249.1 6% Revenue 52.4 67.4 29% Hydroc
Slide 33: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q4 FY22 Q4 FY23 Rs Bn FY22 FY23 0.32 0.10 L&T Power JVs 1.51 0.10 0.93 0.00 L&T IDPL Group* 0.21 (0.76) 0.07 0.01 Others** (0.44) (0.28) 1.32 0.12 Total 1.28 (0.94) * Profit consolidation of L&T IDPL at PAT level has been discontinued from Q4FY23, post signin