Larsen & Toubro : Q3 FY22 Analyst Presentation

LARSEN & TOUBRO

Analyst Presentation

Q3/9M FY22

January 28th, 2022

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 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.

EPC Projects	Hi-Tech Manufacturing	Services	2

01

Key

Highlights

EPC Projects	Hi-Tech Manufacturing	Services	3

Performance parameters improves as Indian economy re-integrates back in Q3

Balancing	Stable group margin
"execution growth"	performance	Healthy Order	Subdued award
& "working capital	despite commodity
Book	finalization
intensity"	headwinds in the
	"P&M" portfolio

Strong demand	LTFH business	Divestment of	The road to
non-core
conditions in	amidst "Strategic	Improved
businesses a
IT&TS business	Shift"	"Return Ratios"
priority

Visible signs of strong economic growth in Q4 aided by public capex

EPC Projects

Hi-Tech Manufacturing

Services

4

Key Financial Indicators

														(Rs. bn)
Q3		Q2	Q3		(y-o-y)	(q-o-q)		Particulars		9M	9M		(y-o-y)
FY21		FY22	FY22				FY21	FY22
732		421	504		-31%	20%	Order Inflow		1248		1191		-5%
							Order Book		3311		3404		3%
356		348	396		11%	14%	Revenue		879		1037		18%
12.0%		11.5%	11.5%				EBITDA (%)		10.5%		11.3%
23		17	21		-9%	19%	Operational PAT		35		50		40%
25		18	21		-17%	13%	Overall PAT		83		50		-39%
								Particulars		9M		9M
									FY21		FY22
								Net Working Capital		26.2%		23.1%
								RONW (TTM)* (%)		16.5%		11.0%

*Includes gain on divestment of Discontinued (E&A) business

EPC Projects	Hi-Tech Manufacturing	Services	5