Earnings Call Presentation

Q4 / FY24

08th May, 2024

India's first Coastal Road

with underground tunnel

Disclaimer

L&T Tech Park, 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 those in such forward looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance.

The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company.

2

Key Highlights

Yashobhoomi (India International Convention and Expo Centre), New Delhi

3

Robust performance in a volatile global macro backdrop

  • 3 trillion+

Order Inflow

in FY24

31% y-o-y growth

  • 2.2 trillion

Revenue Growth

in FY24

21% y-o-y growth

12.0%

NWC / Revenue

as on

31st March 2024

Successfully completed first ever Buyback

FY24

Financial

Performance

  • ₹ 4.8 trillion

Order Book

as on

31st March 2024

  • 131 billion

Reported PAT

in FY24

25% y-o-y growth

14.9%

ROE

in FY24

IDPL Divestment concluded on 10th April 2024

4

Atal Setu, Mumbai

Statue of Oneness, Omkareshwar

Critical booster segments for Chandrayaan 3

Landmark Projects

of FY24

India's first 3D-Printed Post Office, Bengaluru

Shri Ram Janmabhoomi Mandir, Ayodhya

Mumbai Coastal Road Project

5

Key Financial Indicators

(Amount in ₹ bn)

Q4 FY23

Q4 FY24

(y-o-y)

Particulars

FY23

FY24

(y-o-y)

761

721

-5%

Order Inflow

2305

3028

31%

Order Book

3970

4758

20%

583

671

15%

Revenue

1833

2211

21%

11.7%

10.8%

EBITDA (%)

11.3%

10.6%

40

43

8%

Recurring PAT

104

130

25%

40

44

10%

Overall PAT

105

131

25%

Particulars

FY23

FY24

Net Working Capital

16.1%

12.0%

ROE (TTM) (%)

12.2%

14.9%

6

Group Performance

Offshore Jackets for a project in KSA

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Q4 / FY24 Order Inflow/Order Book

(Amount in ₹ bn)

Order Inflow

Order Book

5%

31%

20%

Q4 FY24

FY24

1118

469

252

721

1397

1631

3028

1809

3970

4758

Q4 FY23

FY23

2852

2949

401

360

761

1440

865

2305

31-Mar-23

31-Mar-24

Domestic

International

  • Record Order Inflow of Rs 3 trillion in a year
  • International orders constitute 38% of the Mar'24 Order Book (PY at 28%)
  • Robust prospects pipeline @ ₹ 12.1 trillion for FY25 (up 24% y-o-y)

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Group Performance - Revenue to EBITDA

Remarks for the quarter

Q4 FY23

Q4 FY24

% Var

₹ Billion

FY23

FY24

% Var

583.4

670.8

15%

Revenue

1833.4

2211.1

21%

39%

44%

International Rev.

38%

43%

379.7

446.3

18%

MCO Exp.*

1105.9

1403.1

27%

15.2

14.2

-7%

Fin. Charge Opex**

60.3

57.1

-5%

99.8

107.3

7%

Staff Costs

372.1

411.7

11%

20.3

30.7

51%

Sales & Admin.

87.6

104.2

19%

515.0

598.4

16%

Total Opex

1625.9

1976.2

22%

68.3

72.3

6%

EBITDA

207.5

234.9

13%

11.7%

10.8%

EBITDA %

11.3%

10.6%

• Strong execution momentum in Infrastructure, Precision Engineering & Systems and Realty drive revenue growth

  • MCO expense variation is reflective of activity levels and revenue mix
  • Staff costs increase due to resource augmentation and salary hike across businesses
  • SG&A reflective of linear expenses attributable to execution ramp up, higher credit cost in FS and lower FX gains. PY had benefit of consolidation of Nabha profits
  • Manufacturing, Construction and Operating expenses

**Finance cost of financial services business and finance lease activity

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Group Performance - EBITDA to PAT

Q4 FY23

Q4 FY24

% Var

₹ Billion

FY23

FY24

% Var

68.3

72.3

6%

EBITDA

207.5

234.9

13%

(8.1)

(9.3)

14%

Fin. Cost

(32.1)

(35.5)

11%

(8.5)

(10.2)

20%

Depreciation

(35.0)

(36.8)

5%

7.4

10.4

41%

Other Income

29.3

41.6

42%

(14.6)

(14.2)

-3%

Tax Expense

(44.8)

(49.5)

10%

0.1

0.1

-19%

JV/Associates PAT Share

(0.9)

(0.2)

-76%

(4.7)

(6.2)

31%

Non-controlling Int.

(20.2)

(24.9)

23%

39.9

43.0

8%

Recurring PAT

103.7

129.7

25%

0.0

0.9

Exceptionals (net of tax

1.0

0.9

and NCI)

39.9

44.0

10%

Reported PAT

104.7

130.6

25%

*The Company, on April 10, 2024, has concluded the sale of its stake in L&T Infrastructure Development Projects

Limited (L&T IDPL). As on March 31, 2024, the investment in the joint venture is classified as "Held for Sale".

Remarks for the quarter

  • Finance cost commensurate with level and price of borrowing
  • Higher other income reflective of improved yields
  • Share of JV / Associate PAT primarily comprises results of Power and Hydrocarbon JVs*
  • Exceptional Items (net of tax) for the quarter includes (a) Gain on divestment of stake in
    L&T Transportation Infrastructure Limited of ₹ 61 crore and (b) Reversal of impairment of investment in L&T IDPL of ₹ 33 crore
  • Recurring PAT growth reflective of improved activity levels and lower tax expense

₹ 100 crore = ₹ 1 bn

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Attachments

Disclaimer

Larsen & Toubro Limited published this content on 08 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 13:40:05 UTC.