Quarterly Result Update

LARSEN & TOUBRO LIMITED

January 31, 2024

Consolidated Financial Results

In Cr.
Particulars Qtr Ending Qtr Ending
Dec. 23 Dec. 22 Var. (%)
Current Price: ` 3633.40 Total Income 55,127.82 46,389.72 18.84
OPM (%) 13.06 14.34 -128bps
OP 7,198.65 6,653.47 8
Other income 837.75 891.02 -6
STOCK DATA
PBIDT 8,036.40 7,544.49 7
Net Finance Charges 2,343.82 2,382.88 -2
BSE Code 500510
PBDT 5,692.58 5,161.61 10
NSE Symbol LT
Depreciation 920.75 825.18 12
Reuters LART.BO
PBT before EO 4,771.83 4,336.43 10
Bloomberg LT IN
EO 0.00 81.42
PBT after EO 4,771.83 4,255.01 12
Tax expense 1,177.32 1,270.50 -7
PAT 3,594.51 2,984.51 20
VALUE PARAMETERS
Minority Interest 645.48 505.54 28
Share of Profit of Associates -1.67 -7.47 -78
52 W H/L(Rs) 3738.90/2073.85
Profit after Minority Interest and Share of 2,947.36 2,552.78 15
Mkt. Cap.(Rs Cr) 499428.38
profit of Associates
Latest Equity(Subscribed) 274.91 EPS (Rs) 21.44 17.59
Latest Reserve (cons.) 78136.89
Larsen & Toubro Q3FY24 Results: Sales up 19%, net up 15%, below Estimates
Latest EPS (cons.) -Unit Curr. 88.57

Latest P/E Ratio -cons 41.02 It has reported 15.45% jump in consolidated net profit to Rs 2,947.36 crore on 18.84% increase
in revenue from operations to Rs 55,127.82 crore in Q3 FY24 over Q3 FY23. EBIDTA margin fell
Latest Bookvalue (cons.) -Unit Curr. 570.46
128 bps to 13.06% vs 14.34% a year ago.The growth in revenue was aided by ramp up in
Latest P/BV - cons 6.37 execution of the strong order book in the Projects and Manufacturing portfolio. The company
Dividend Yield -% 0.68 said that international revenues during the quarter at Rs 24,300 crore constituted 44% of the

Face Value 2.00 total revenue.

The company received orders worth Rs 75,990 crore at the group level during the quarter ended
31 December 2023, registering a robust growth of 25% on y-o-y basis. During the quarter,
orders were received across various businesses like offshore vertical of Hydrocarbon, Solar EPC
& Power Transmission, Water Utilities, Buildings & Factories and Minerals & Metals sectors.
SHARE HOLDING PATTERN (%) International orders at Rs 50,562 crore during the quarter comprised 67% of the total order

Description as on % of Holding inflow.

31/12/2023 The consolidated order book is at Rs 469,807 crore as on 31 December 2023, with international

Foreign 26.32 orders having a share of 39%.

Institutions 36.99
Govt Holding 0.23 Segment Performance
Non Promoter Corp. Hold. 1.09 • Infrastructure project segment posted customer revenues of Rs 27,845 crore during the
Public & Others 35.38 quarter ended December 31, 2023, registered a y-o-y growth of 27% aided by robust
execution momentum from a growing order book.

• The segment secured order inflow of Rs 43,208 crore, during the quarter ended 31
December 2023, registering healthy growth of 33% y-o-y basis with receipt of marquee

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 orders mainly in Power Transmission and Distribution business. International orders at Rs
27,230 crore constituted 63% of the total order inflow of the segment during the quarter.
The segment order book stood at Rs 317,693 crore as on December 31, 2023, with the share
of international orders at 28%.

• The energy projects segment secured orders valued at Rs 13,281 crore during the quarter
ended December 31, 2023, registering 47% growth on y-o-y basis with receipt of a mega
order in Offshore vertical of Hydrocarbon business. International order inflow constituted
93% of the total order inflow during the quarter.

• The Hi-Tech manufacturing segment secured orders valued at Rs 2,043 crore during the
quarter ended December 31, 2023 registering marginal growth of 6% y-o-y. Export orders
constituted 15% of the total order inflow of the segment during the quarter. The order book
of the segment was at Rs 25,758 crore as on 31 December 2023, with the share of export
orders at 8%.

• The IT & Technology Services (IT&TS) segment recorded customer revenues of Rs 11,196
crore for the quarter ended 31 December 2023, registering a modest y-o-y growth of 5%,
reflecting growth headwinds in the IT&TS sector. International billing contributed 93% of
the total customer revenues of the segment for the quarter ended 31 December 2023. The
aggregated revenue of the two listed subsidiaries (LTIMindtree and L&T Technology
Services) in this segment at $1,374 million registered y-o-y growth of 5% in USD terms.

• The financial services segment reflects the performance of L&T Finance Holdings (LTFH), a
listed subsidiary. The segment recorded income from operations at Rs 3,407 crore during
the quarter ended 31 December 2023, registering growth of 2% y-o-y basis, mainly
attributed to higher disbursement in retail business, in line with its strategy of retailisation of
the loan book. The Retail loan book now constitutes 91% of the total loan book as on 31
December 2023.

• The development projects segment recorded customer revenues of Rs 1,220 crore during
the quarter ended 31 December 2023, registering growth of 10% compared to
corresponding quarter of previous year, driven by improved PLFs in Nabha power and higher
ridership in Hyderabad Metro.

Management Comment
S.N. Subrahmanyan, chairman and managing director said, “During the quarter ended
December 2023, we made a foray into fabless semiconductor chip design. Our bold strides in
new age sectors, including Digital Platforms, Data Centres, and Green Energy will pivot us into a
technology – led conglomerate.

We are currently witnessing improved capex spends in both our primary geographies of India
and Middle East. Despite continued global macroeconomic and geopolitical volatility we remain
positive about the investment spends continuing in the medium term.”

Outlook
On outlook front, L&T said that the global economy remains volatile with continuing military
engagement in Europe and West Asia, disrupting the supply chain and global trade movements.
The US economy has been resilient so far, but the UK and European economies are weak and
the concern around China persists. On the positive side though, some easing of recent headline
inflation numbers has led to expectations of an early end to monetary policy tightening cycle,
thereby shoring up market sentiments. Middle East, particularly Saudi Arabia, continues to
pursue its ambitious growth plans in both energy and other sectors.

The company is focused on tapping emerging opportunities both in India and overseas with its

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 proven competence in the domains of engineering, manufacturing, construction, project
management and services for profitable execution of its large order book. As it has always been,
the company continues to remain committed to creating sustainable long-term returns for its
stakeholders.

Meanwhile, the company’s board approved the merger of L&T Energy Hydrocarbon Engineering
and L&T Sapura Offshore Private, wholly owned subsidiaries with the company.

Further, board approved the equity investment upto Rs 2,774 core in L&T Metro Rail
(Hyderabad) (L&TMRHL), a subsidiary of the company.

The proposed investment will be made by subscribing to equity shares being offered under a
Rights Issue by L TMRHL at face value.

E-mail: [email protected]

Corporate Office: Mumbai Office: Kolkata Office:

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Pusa Road, New Delhi - 110005 4th Floor ,Graham Firth Steel Compound, Poddar Court,Gate No.- 4, 5th Floor, Kolkata-700001
Tel: +91-11-30111000 Off Western Express Highway, Jay Coach Signal, Tel: 91-33-39847000, Fax: 91-33-39847004
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