Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — H1 FY23 Earnings Presentation
30 slides from Larsen & Toubro's earnings presentation, Oct 31, 2022
Slide 1: Cover letter to stock exchanges: Analyst Presentation Q2 / H1 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/2022 October 31, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jejeeb
Slide 2: Analyst Presentation Q2 / H1 FY23
Analyst Presentation Q2 / H1 FY23 October 31st , 2022 1 Safety Pledge being taken at L&T Construction site
Slide 3: Disclaimer
Elixir Reserve 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
Slide 4: Key Highlights
Key Highlights Kudankulam Nuclear Power Plant Site 3
Slide 5: A robust quarter….
A robust quarter…. • Order Inflows: 23% y-o-y • Operational PAT: 29% y-o-y Top Line • Revenue: 23% y-o-y Bottom Line • Overall PAT: 23% y-o-y • Order Book: Rs 3724 bn Liquidity • Healthy NWC Ratio @ 20.2% & Balance ROE • Sequential improvement • Comfortable Gross & Net Debt Sheet Levels Stable India
Slide 6: Key Financial Indicators
Key Financial Indicators (Amount in Rs. bn) Q2 FY22 Q1 FY23 Q2 FY23 (y-o-y) (q-o-q) Particulars H1 FY22 H1 FY23 (y-o-y) 421 418 519 23% 24% Order Inflow 687 937 36% Order Book 3305 3724 13% 348 359 428 23% 19% Revenue 641 786 23% 11.5% 11.0% 11.5% EBITDA (%)* 11.2% 11.3% 17 17 22 29% 31% Operational
Slide 7: Group Performance
Group Performance Kempegowda International Airport, Bengaluru - Terminal 2 6
Slide 8: Q2/H1 FY23 Order Inflow/Order Book
Q2/H1 FY23 Order Inflow/Order Book (Amount in Rs. bn) Order Inflow Order Book 23% 36% 13% H1 FY23 Q2 FY22 Q2 FY23 758 346 173 519 585 352 937 1040 3305 3724 H1 FY22 375 312 687 2547 2684 200 221 421 H1 FY22 H1 FY23 Domestic International • Q2 Order Inflows from Infrastructure & Hydrocarbon • Pick up
Slide 9: Group Performance – Sales & Costs
Group Performance – Sales & Costs Remarks for the quarter Q2 FY22 Q2 FY23 % Var Rs Billion H1 FY22 H1 FY23 % Var • Infrastructure and IT&TS businesses drive 347.7 427.6 23% Revenue 641.1 786.2 23% revenue growth 35% 37% International Rev. 36% 37% • MCO expense variation is reflective of activity lev
Slide 10: Group Performance – Profit Parameters
Group Performance – Profit Parameters Remarks for the quarter Q2 FY22 Q2 FY23 % Var Rs Billion H1 FY22 H1 FY23 % Var • Finance cost commensurate with level and 39.9 49.0 23% EBITDA 71.7 88.6 24% price of borrowing at parent, Metro (7.8) (8.4) 7% Fin. Cost (16.1) (15.9) -1% refinancing aids improveme
Slide 11: Segment Performance Highlights
Segment Performance Highlights Mono Ethylene Glycol (MEG) Project, Paradip 10
Slide 12: Segment Composition
Segment Composition Infrastructure Energy Projects IT & TS Others Projects Buildings Hydrocarbon & Factories Buildings LTI + Mindtree & Factories Realty Buildings & Factories Buildings & Factories LTTS Smart World & Power Communications Heavy Civil Digital Platforms Platforms Green EPC Industrial Ma
Slide 13: Order Inflow Composition – Q2 / H1 FY23
Order Inflow Composition – Q2 / H1 FY23 Q2 FY23 Rs. 519 Bn H1 FY23 Rs. 937 Bn Hi-Tech Others, 4% Others, 4% Manufacturing, 4% Hi-Tech Manufacturing, 6% Segment Energy, 16% Services, 30% Services, 28% Energy, 14% Infrastructure, 48% Infrastructure, 46% Middle East, Middle East, 14% 17% Geography USA
Slide 14: Order Book as on 30-Sep-2022
Order Book as on 30-Sep-2022 Segment Geography Energy, 19% Middle East, 22% Hi-Tech Manufacturing, 5% Infrastructure, 72% USA & Europe, 0.3% Domestic, 72% Others, 4% ROW, 5% Order Book Rs. 3724 Bn 13
Slide 15: Revenue Composition – Q2 / H1 FY23
Revenue Composition – Q2 / H1 FY23 Q2 FY23 Rs. 428 Bn H1 FY23 Rs. 786 Bn Hi-Tech Others, 4% Manufacturing, 4% Others, 4% Hi-Tech Manufacturing, 3% Segment Services, 34% Services, 36% Energy, 13% Energy, 14% Infrastructure, 45% Infrastructure, 43% Middle East, 10% Middle East, 10% Geography USA & Eur
Slide 16: Infrastructure Projects Segment
Infrastructure Projects Segment (Amount in Rs. bn) Net Revenue 39% Net Revenue 38% 193.7 104.1 141.8 243.3 335.5 139.2 Q2 FY22 Q2 FY23Q1 FY22 H1 FY22 Q1 FY23 H1 FY23 8.3% EBITDA Margin 6.6% 7.8% EBITDA Margin 6.6% DomesticInternational Domestic International • Robust order inflow pick up in Q2; heal
Slide 17: Energy Projects Segment
Energy Projects Segment (Amount in Rs. bn) Net Revenue 7% Net Revenue 2% 59.8 104.1 141.8 106.6 55.9 109.3 59.8 Q2 FY23 H1 FY22 Q1 FY23 H1 FY23 Q2 FY22 6.6% EBITDA Margin 8.5% 7.0% EBITDA Margin 8.5% DomesticInternational Domestic International • Receipt of multiple domestic orders in Hydrocarbon bu
Slide 18: Hi-Tech Manufacturing Segment
Hi-Tech Manufacturing Segment (Amount in Rs. bn) Net Revenue 1% Net Revenue 1% 14.7 14.6104.1 141.8 27.3 27.1 Q1 FY22 Q2 FY23 H1 FY22 Q1 FY23 H1 FY23 Q2 FY22 14.5% EBITDA Margin 18.5% 16.7% EBITDA Margin 16.9% DomesticInternational Domestic International • Multiple order wins in Heavy Engineering; w
Slide 19: IT & Technology Services Segment
IT & Technology Services Segment (Amount in Rs. bn) Net Revenue 29% Net Revenue 30% 101.5 151.1 195.8 78.8 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 23.2% EBITDA Margin 21.9% 23.0 % EBITDA Margin 22.1% LTI LTTS Mindtree • LTI revenue growth led by Energy & Utilities and BFS • LTTS revenue growth led by Transp
Slide 20: Financial Services Segment
Financial Services Segment Q2 Q2 H1 H1 % Var Rs. Bn % Var FY22 FY23 FY22 FY23 29.8 31.5 6% Income from Operations 60.4 61.1 1% 2.2 4.1 81% Reported PAT 4.0 6.7 66% 1.4 2.7 90% PAT (Net of NCI) accruing to the group 2.5 4.4 75% Book 869.4 901.0 4% Gross Stage 3 Assets 6.48% 4.02% Net Stage 3 Assets 2
Slide 21: Development Projects Segment
Development Projects Segment (Amount in Rs. bn) Net Revenue 15% Net Revenue 17% 13.4 23.0 26.9 11.7 Q2 FY22 Q2 FY23 H1 FY22 H1 FY23 4.1% EBITDA Margin 5.2% 1.9% EBITDA Margin 4.8% 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 24% Net Revenue 22% 17.0104.1 141.8 33.0 27.0 13.8 Q2 FY22 Q2 FY23Q1 FY22 H1 FY22 Q1 FY23 H1 FY23 21.5% EBITDA Margin 15.6% 19.3% EBITDA Margin 16.4% DomesticInternational Domestic International • Segment comprises Realty, Industrial Valves, Smart World
Slide 23: India - A beacon of hope in this decade
“QE” to “QT” and its consequences The “Good” The “Bad” The “Ugly” • India growth momentum • Rising inflation • Increasing military conflicts / • Green shoots - Private trade tensions • External & internal Balances consumption • Global recession • Strong dollar • Domestic Capex spends • Climate chang
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 Sep-22 Incr / (Decr) Equity & Reserves 824 818 -6 Non Controlling Interest 130 134 4 Borrowings - Financial Services 841 841 -1 Development Projects 181 186 5 Others 213 244 32 Sources of Funds 2188 2223 34 Fixed Assets (incl ROU assets) 137 150 13 Intangible Assets &
Slide 26: Cash Flow
Cash Flow Q2 FY22 Q1 FY23 Q2 FY23 Rs Bn H1 FY22 H1 FY23 41.9 42.8 51.6 Operating Profit 75.5 94.4 14.5 (41.2) 5.8 Changes in Working Capital [(Inc)/Dec] (19.3) (35.4) (13.8) (10.7) (16.3) Direct Taxes (Paid) / Refund [Net] (20.7) (27.0) 42.6 (9.2) 41.2 Net Cash from / (used in) Operations (A) 35.5 3
Slide 27: Segment Margin – Q2 FY23
Segment Margin – Q2 FY23 Q2 FY22 Q2 FY23 Segment (Rs Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 13923 1152 8.3% 19370 1287 6.6% Energy Projects Segment 5981 392 6.6% 5586 473 8.5% Hi-Tech Manufacturing Segment 1469 214 14.5% 1456 270 18.5% Others Segm
Slide 28: Segment Margin – H1 FY23
Segment Margin – H1 FY23 H1 FY22 H1 FY23 Segment (Rs Cr) EBITDA EBITDA Net Revenue EBITDA Net Revenue EBITDA % % Infrastructure Projects Segment 24332 1888 7.8% 33551 2206 6.6% Energy Projects Segment 10930 763 7.0% 10659 904 8.5% Hi-Tech Manufacturing Segment 2706 452 16.7% 2728 462 16.9% Others Se
Slide 29: Breakup of Energy and Hi-Tech Manufacturing Segment
Breakup of Energy and Hi-Tech Manufacturing Segment Q2 Q2 H1 H1 Y-o-Y Rs Bn Y-o-Y FY22 FY23 FY22 FY23 146.5 84.4 -42% Energy Segment 165.6 128.1 -23% Order Inflow 145.0 74.2 -49% Hydrocarbon 155.0 115.9 -25% 1.4 10.2 >100% Power 10.5 12.1 15% Energy Segment 59.8 55.9 -7% Energy Segment 109.3 106.6 -
Slide 30: Share in Profit/(Loss) of JVs/Associates
Share in Profit/(Loss) of JVs/Associates Q2 FY22 Q2 FY23 Rs Bn H1 FY22 H1 FY23 0.43 0.01 L&T Power JVs 0.73 (0.02) (0.26) (0.32) L&T IDPL Group (0.71) (0.52) (0.17) (0.03) Others (0.26) (0.44) 0.01 (0.34) Total (0.24) (0.99) 29