L&T: Performance for the period ended December 31, 2021

“Performance for the period ended December 31, 2021”. Also, attached is the snapshot and highlights of the results for your reference.

Highlights:

• Larsen & Toubro achieved Consolidated Revenues of ₹ 39,563 crore for the quarter ended December 31, 2021, registering a y-o-y growth of 11%. The increase reflects an improving project execution momentum and robust growth in the IT&TS portfolio.
• International sales during the quarter at ₹ 14,541 crore constituted 37% of the total revenue.
• For the nine month ended December 31, 2021, the Consolidated Revenues at ₹ 103,671 crore recorded a y-o-y growth of 18% with international revenues during the nine month period at ₹ 38,045 crore constituting 37% of the total.
• The Consolidated Net Profit After Tax for the quarter ended December 31, 2021 at ₹ 2,055 crore, registered a decline of 17% over the corresponding quarter of the previous year, which had an instance of a sale of commercial property in Realty business and gain on divestment from discontinued operations of the Electrical & Automation business.

SNAPSHOT OF L&T’s Q3 FY2021-22 RESULTS

Revenue, Margin & Net Profit

• Larsen & Toubro Q3 Consolidated Revenue recorded growth of 11% at ₹ 39,563 Cr.
• The increase reflects an improving project execution momentum and robust growth in the IT&TS portfolio
• Stable group margin performance despite commodity headwinds in the EPC & Manufacturing businesses
• L&T Consolidated Net Profit After Tax for the quarter ended Dec. 31, 2021 stood at ₹ 2055 Cr. with decline of 17%
• The corresponding quarter of the previous year had an instance of a sale of commercial property in Realty business and gain on divestment from discontinued operations of the Electrical & Automation business.

Order Inflows and Order Book

• L&T Order Book stands at record levels of ₹ 340,365 Cr., provides multi year revenue visibility
• The Company bagged orders worth ₹ 50,359 crore during the quarter ended December 31, 2021, registering 31% decline over the corresponding period of the previous year. Corresponding year had secured largest ever EPC order for Mumbai Ahmedabad High Speed Rail
• Robust order announcements and tendering activity continued at a brisk pace in the current year. With improved government finances, expect strong activity levels in Q4

Outlook

• Improved macro environment as Indian economy re integrates back in Q3 post the 2^nd Covid wave
• In the backdrop of the current economic environment, the Company continues its planned path of winning targeted orders, focus on profitable execution of its large order book, leverage the strong growth momentum in its IT & TS portfolio value enhancing measures; Strong tailwinds witnessed in the IT & TS portfolio
• Balancing “Execution growth” and “Working capital” intensity in a challenging year
• Divestments: Of non-core businesses a priority
• Return Ratios: Will be pursued aggressively in order to create sustainable long term returns for shareholders.
• Enhanced Public Capex spends are the key to economic revival. Return of Private Capex to compliment growth.

ESG development

• During the quarter the company reaffirmed its commitment to integrate its ESG goals with business targets and is working towards becoming a ‘Net Zero’ company; Aims to achieve Carbon neutrality by 2040 and Water neutrality by 2035.