November 16, 2017 LARSEN & TOUBRO LIMITED. In Cr. Consolidated Results STOCK DATA VALUE PARAMETERS SHARE HOLDING PATTERN (%)

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1 LARSEN & TOUBRO LIMITED November 16, 2017 Current Price: ` STOCK DATA BSE Code NSE Symbol LT Reuters LART.BO Bloomberg LT IN VALUE PARAMETERS Price (Rs) W H/L(Rs) / Mkt. Cap.(Rs Cr) Latest Equity(Subscribed) Latest Reserve (cons.) Latest EPS (cons.) -Unit Curr Latest P/E Ratio -cons Latest Bookvalue (cons.) -Unit Curr Latest P/BV - cons 3.33 Dividend Yield -% 1.16 Face Value 2 SHARE HOLDING PATTERN (%) Description as on % of Holding 30/09/2017 Foreign Institutions Govt Holding 0.21 Non Promoter Corp. Hold Promoters 0 Public & Others Consolidated Results In Cr. Particulars Qtr Ending Qtr Ending Sep. 17 Sep. 16 Var. (%) Sales OPM (%) OP Other inc PBIDT Interest PBDT Dep PBT EO PBT after EO Total Tax PAT Share in Profit of Associates MI PAT after EO EPS (Rs) Engineering major Larsen and Toubro Ltd (L&T) Q2 better-than-expected profit growth of 26.2 percent L&T reported a 10% growth in consolidated net sales in June 17 quarter to Rs crore. Dometic L&T reported a 6% growth in consolidated net sales in Sep 17 quarter to Rs crore. Domestic revenue booking was affected due to GST transition and some delay in execution. OPM was up by 190 bps to 11.2% due to lower raw material costs and better job mix. Thus, OP growth was higher by 28% to Rs crore. Other income was lower by 11% to Rs crore largely due to lower interest income. Interest costs were higher by 16% to Rs crore in line with higher working capital borrowings. Depreciation was lower by 6% to Rs crore. Thus, PBT stood at Rs crore, higher by 29% YoY. EO income stood at Rs crore for Sep 17 quarter as compared to Rs crore for Sep 16 quarter. EO income was due to profit on sale of general insurance business in Sep 16 quarter vis a vis profit on sale of investment in cutting tools business in Sep 17 quarter. Thus PBT after EO was restricted to 13% growth to Rs crore. With a 20% decrease in tax to Rs crore, PAT stood at Rs crore, up by 26% YoY. After providing MI of Rs crore and losses in Share of associates of Rs crore as compared to Rs crore and Rs crore respectively for Sep 16 quarter, the consolidated PAT for Sep 17 quarter stood at Rs crore, up by 27% YoY. Consolidated Performance for Sep 17 quarter For the quarter, sales from the infrastructure segment stood at Rs crore and accounted for 44% of sales. PBIT from the same was up by 13% to Rs crore and accounted for 27% of total. 1

2 Segment Results In Cr. Sales Qtr Ended Qtr Ended Var. % to Sep Sep (%) Total Infrastructure Power Heavy Engineering Electrical & Automation Hydrocarbon IT and Technology services Financial Services Developmental Projects Others Total Less Inter segment revenue Net sales PBIT Infrastructure Power Heavy Engineering Electrical & Automation Hydrocarbon IT and Technology services Financial Services Developmental Projects Others PBT before tax and interest Less: Inter-Segment margin PL Less: Interest Add: Other unallocable income PBT For the quarter, sales from the Power Segment stood at Rs crore and accounted for 6% of sales. PBIT from the same was up by 92% to Rs crore and accounted for 3% of total. For the quarter, sales from the Heavy Engineering segment stood at Rs crore and accounted for 4% of sales. PBIT from the same was up by 57% to Rs crore and accounted for 5% of total. For the quarter, sales from the Electrical Automation segment stood at Rs crore and accounted for 5% of sales. PBIT from the same was up by 22% to Rs crore and accounted for 6% of total. For the quarter, sales from the Hydrocarbon segment stood at Rs crore and accounted for 9% of sales. PBIT from the same was up by 74% to Rs crore and accounted for 9% of total. For the quarter, sales from the IT and Technology services segment stood at Rs crore 2

3 and accounted for 10% of sales. PBIT from the same was up by 18% to Rs crore and accounted for 20% of total. For the quarter, sales from the financial services Segment stood at Rs crore and accounted for 9% of sales. PBIT from the same was down by 16% to Rs crore and accounted for 11% of total. For the quarter, sales from the Developmental Segment stood at Rs crore and accounted for 5% of sales. PBIT from the same was up by 254% to Rs crore and accounted for 14% of total. For the quarter, sales from the Others Segment stood at Rs crore and accounted for 7% of sales. PBIT from the same was up by 146% to Rs crore and accounted for 6% of total. Consolidated performance for H1 ended Sep 17 L&T reported a 8% growth in consolidated net sales in H1 ended Sep 17 to Rs crore. Domestic revenue booking was affected due to GST transition and some delay in execution. OPM was up by 100 bps to 10% due to lower raw material costs and better product mix. Thus, OP growth was higher by 19% to Rs crore. Other income was higher by 4% to Rs crore. Interest costs were higher by 14% to Rs crore in line with higher working capital borrowings. Depreciation was higher by 6% to Rs crore. Thus, PBT stood at Rs crore, higher by 20% YoY. EO income stood at Rs crore for H1 ended Sep 17 as compared to Rs crore for H1 ended Sep 16. EO income was due to profit on sale of general insurance business in H1 ended Sep 16 vis a vis profit on sale of investment in cutting tools business in H1 ended Sep 17. Thus PBT after EO was restricted to 11% growth to Rs crore. With a 18% decrease in tax to Rs crore, PAT stood at Rs crore, up by 26% YoY. After providing MI of Rs crore and losses in Share of associates of Rs crore as compared to Rs crore and Rs crore respectively for H1 ended Sep 16, the consolidated PAT for H1 ended Sep 17 stood at Rs crore, up by 33% YoY. Consolidated Segmental Performance for the 6 months ended Sep 17 For the six months, sales from the infrastructure segment stood at Rs crore and accounted for 44% of sales. PBIT from the same was up by 8% to Rs crore and accounted for 32% of total. For the six months, sales from the Power Segment stood at Rs crore and accounted for 7% of sales. PBIT from the same was down by 30% to Rs crore and accounted for 2% of total. For the six months, sales from the Heavy Engineering segment stood at Rs crore and accounted for 4% of sales. PBIT from the same was up by 33% to Rs crore and accounted for 4% of total. For the six months, sales from the Electrical Automation segment stood at Rs crore and accounted for 5% of sales. PBIT from the same was up by 43% to Rs crore and accounted for 5% of total. For the six months, sales from the Hydrocarbon segment stood at Rs crore and accounted for 10% of sales. PBIT from the same was up by 156% to Rs crore and accounted for 9% of total. For the six months, sales from the IT and Technology services segment stood at Rs crore and accounted for 10% of sales. PBIT from the same was up by 13% to Rs crore and accounted for 23% of total. 3

4 For the six months, sales from the financial services Segment stood at Rs crore and accounted for 9% of sales. PBIT from the same was up by 9% to Rs crore and accounted for 15% of total. For the six months, sales from the Developmental Segment stood at Rs crore and accounted for 5% of sales. PBIT from the same was up by 61% to Rs crore and accounted for 7% of total. For the six months, sales from the Others Segment stood at Rs crore and accounted for 7% of sales. PBIT from the same stood at Rs crore as compared to loss at PBIT level of Rs 6.53 crore for H1 ended Sep 16 and accounted for 2% of total. Outlook The Government's determined efforts to revive the investment sentiment while undertaking impactful economic reforms have expectedly caused transition challenges. While the potential for investment in growth remains compelling, the readjustment to the continuing impact of currency purge and the accelerated implementation of GST has upset business environment and tripped growth in an economy already beset with twin challenges of attracting investments and adhering to fiscal rectitude. Globally, the developed economies appear hopeful of a recovery and better growth prospects. The investment climate in the company's focus market Middle East continues to provide some selective opportunities despite the oil price shock and the geo political risks. The company expects that the various reforms and economic measures over the past year would take some time to stoke growth. Focus for the company continues to remain on improvement of return on equity through reduction of working capital and higher operational efficiencies. Other updates Consolidated order book stood at Rs crore, up by 2% YoY. International order book constitutes around 26% of total order book. Order inflow in Sep 17 quarter stood at Rs crore down by 8% YoY. International order inflow accounted for around 36% of total order inflows and was largely due to hydrocarbon orders. Sep 17 quarter revenue growth was led by water, services and heavy engineering businesses. Revenue to grow by around 12% in FY 18 Order inflow for FY 18 to be flat on YoY basis 4

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