Thanking you, Yours faithfully, for LARSEN & TOUBRO LIMITED

Transcription

1 Q LARSEN & TOUBRO SEC/PAM/201 Larsen & Toubro Limited Secretarial Department L&T House, Ballard Estate Narottam Morarjee Marg Murnbai , INDIA Tel: Fax: tww.larsentoubro.com November 2, 201 The Secretary BSE Limited Phiroze Jejeebhoy Towers, Dalai Street, MUMBAI STOCK CODE: National Stock Exchange Of India Limited Exchange Plaza, 5th Floor Plot No.C/1, G Block Bandra-Kurla Complex Bandra (E), Mumbai STOCK CODE: LT Dear Sir, Sub.: Investor Presentation Pursuant to Regulation 46(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith a copy of updated Investor Presentation, which will be uploaded to our Investor Website We request you to take note of the same. Thanking you, Yours faithfully, for LIMITED Encl : as above N. HARIHARAN EXECUTIVE VICE PRESIDENT & COMPANY SECRETAR (ACS 3471) ISO 9001 REGISTERED CIN : L99999MH1946PLC00476 CONN MOP SYS HvA CO24 DNV Cerldical.on.V., The Netherlands

2 e LARSEN & TOUBRO 1 Q2/H1 FY19 October 31, 201 Investor Presentation

3 2 Disclaimer This presentation contains certain forward looking statements concerning LEtT's 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. ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

4 3 Presentation Outline 01 L&T LaT Overview 02 Business Overview 03 Group p Performance 04 The Environment & the Outlook ENGINEERING I MANUFACTURING I CONSTRUCTION I PROJECTS I TECHNOLOGY I FINANCIAL SERVICES

5 4 4 L&T LEtT - At a Glance India s India's largest E&C company with interests in Projects, Infrastructure Development, Manufacturing, IT & Et Financial Services 124 ` ;4 Professionally Managed Company FY 1 Group Revenues: 1200 Bn (approx.us$ 1 Bn) Market Cap (31st October, 201): 119 Bn (approx. US$ 25 Bn) Credit Ratings CRISIL: AAA / Stable ICRA: AAA (Stable) ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

6 Mar '04 71 Sept ' Mar '05 Sept '05 Mar '06 Sept '06 Mar '07 Sept '07 Mar '0 Sept '0 Mar '09 Sept '09 Mar '10 Sept '10 Mar '11 Sept '11 Mar '12 Sept '12 Mar '13 Sep'13 Mar'14 Sep' ,237 1, ,10 1,353 (us 1 alwy) dej lavew in aduelp 2 W - iln L&T At a Glance Mar'15 1,59 Sep'15 4 1,365 Mar'16 4 1,133 Sep'16 1,335 Mar'17 1,472 Sep'17 1,56 Mar'1 1,3 Sep'1 1,775 to 5

7 6 LEtT L&T - Shareholding Pattern Bharat ETF, Others, 0.44% % Mutual Funds Et & Pvt. Insurance Cos., 14.2% 30th Sep, LEtT L&T Employee 201 Welfare Foundation, 12% Individuals, 22% Govt. Financial Institutions Et & Insurance Companies, 23% Fll's FII s Et & GDR, 20% Major Institutional Shareholders % Shares Life Insurance Corporation of India 17.6% HDFC Mutual Fund 3.% General Insurance Corp. of India 1.% SUUTI 1.% ICICI Prudential Life Insurance Co 1.7% Nomura Asset Management 1.5% Listed with BSE & NSE GDRs listed with LSE and LuxSE LEtT L&T is one of the most widely held listed companies in India No promoter holding Uninterrupted Dividend payment record since 1946 mil ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

8 7 Experienced Management Team A M Naik Group Chairman BE [Mech] Joined L&T in March 1965 Diverse and vast experience in general management, Technology and E&C S. N. Subrahmanyan Chief Executive Officer and Managing Director B.SC ENGG (CIVIL), MBA (Finance) Joined L&T in November 194 Vast experience in Design & Build (D&B) Contracts, PPP Projects, Engineering and Construction Industry R Shankar Raman Whole-time Director & Chief Financial Officer B.Com, ACA, ACMA Joined L&T Group in Nov 1994 Vast experience in Finance, Taxation, Insurance, Risk Management, Legal and Investor Relations M. V. Satish Whole-time Director & Sr. Executive Vice President (Building, Minerals & Metals) BE (Civil) Joined L&T in 190 Vast experience in Construction, Business Development, Contracts Management and Property Development in India and GCC region Shailendra Roy Shailendra Roy Whole-time Director & Sr. Executive Vice President (Power, Heavy Engg. & Nuclear) B.Tech Joined L&T in 2004 Vast experience in Thermal Power, Heavy Engineering, Nuclear Business J.D. Patil Whole-time Director & Sr. Executive Vice President (Defence Business) M.Tech- IIT, Mumbai Joined L&T in 197 Vast experience in leading high technology interdisciplinary strategic programs across defence & Et aerospace sector D. K. Sen Whole-time Director & Sr. Executive Vice President (Infrastructure) B.SC ENGG (CIVIL), MBA (Finance) Joined L&T in 199 Vast experience in Design & Et Engineering, Business Development, Tendering and construction Subramanian Sarma Non-Executive Director B.Tech (Chem.), M.Tech IIT, Mumbai Joined L&T Group in 2015 Vast experience in managing large business portfolios in energy sector ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

9 Corporate Governance LEtT's L&T s essential character revolves around values based on transparency, integrity, professionalism and accountability. Four-tier Governance Structure Board of Directors Executive Committee (ECom) Independent Company (IC) Board Strategic Business Group (SBG) / Business Unit (BU) ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

10 9 Sustainability Sustainability Report 2017 released with Sustainability Roadmap 2021 GRI `GRI Checked Checked' externally assured & Et In 'In Accordance - Comprehensive Comprehensive' highest level of disclosure in public domain Thrust Areas: Energy Conservation Renewable Energy GHG Emissions Water Efficiency Material Management Green Buildings 4 Gtobet Compact D wjprie Sustainabdity Indices Netwcrk India i'_rllh or bereedvim 4.3 #CDP ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

11 10 Sustainability - Environment & a Social Green Product Portfolio More than 49.1 million sq. ft of Green Building space constructed for clients Hydel projects with an aggregate capacity of 70 MW in various stages of development 4 supercritical and ultra-supercritical thermal power plants under execution CSR Highlights Theme: Building India s India's social infrastructure Working in 3 states across India on Integrated Community Development Programmes Aligned with Sustainability Development Goals (SDGs) A Green Products portfolio that grew and contributed 2.99% to overall sales in FY Water & Sanitation: 107,253 Beneficiaries Innovative Solar Trackers to maximize capture of solar radiation on the PV panel, generating power more efficiently than fixed tilt systems. Health: 993,7 Beneficiaries 1 Lot Energy efficient Power Transmission & Distribution Systems designed to reduce pilferage and transmission & distribution tosses. Education: 332,013 Beneficiaries Green buildings constructed for customers and at L&T campuses use recycled & locally sourced materials wherever possible, and help reduce energy and water consumption. Skill Development: 34,696 Beneficiaries Year ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

12 11 Presentation Outline 01 L&T Overview 02 Business Overview 03 Group Performance 04 The Environment & the Outlook ENGINEERING I MANUFACTURING I CONSTRUCTION I PROJECTS I TECHNOLOGY I FINANCIAL SERVICES

13 12 Builders to the Nation "ACV ILYA"' V Vizag Steel Plant Turbine Rotor, Gujarat m Rail Bridge Jammu Udhampur Wankhede Stadium, Mumbai Baha i Temple, Delhi Mumbai International Airport Oil & Gas Equipment Vivekanand Bridge, Bride Kolkata, a at, II Kakrapar Nuclear Power Plant, Guj ITC Grand Chola Hotel, Chennai Sri Sathya Sai Whitefield Hospital Srinagar Hydro Electric Plant oig r, tree, If r-rr-r-n--- Vacuum Column, Paradip Refinery 2x34 MW CCPP, Vemagiri, A.P. Gas Platform, Abu Dhabi Water Treatment Plant, Barmer ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

14 13 International Footprint - Marquee Jobs Stadium at Barbados Salalah Airport, Oman Twin Towers, Dubai Marina NMC Speciality hospital, Abu Dhabi Bhukara Hotel, Uzbeckistan World's World s Longest Conveyer, Bangladesh Bulk Cement Terminal, Colombo Fabrication Facility, Oman Punatsangchhu HEP, Bhutan Sheikh Khalifa Interchange, UAE Coal Gasifier for China Transmission Lines, Fujirah, Dhaid Water Treatment Plant, Doha Petronas Refinery, Malaysia Bi-metallic Urea Stripper for Saudi MV Switchgear Factory, Malaysia ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

15 14 EEtC E&C Delivery Platform One of Asia's Asia s largest vertically integrated EEC E&C Companies a Design & Engineering EPC Projects Manufacture & Fabrication Construction a lit* Single point responsibility for turnkey solutions ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

16 15 Quality Customer Mix MMRC NPCIL /14/ MAHAGENCO 110 Wen W le Pow Ornaltn Ca. la MMRDA Maio ihaslalm, RIO* Owilopmai 16116e111 OErn. ni1-41 fzcofl1 Dam METRO RAIL CORPORATION LTD. inkfa.,ft NABILAILA VALLEY DCWELLIPPANNT ALITIRGLITY Indian Coastguard OP P-019AI Saudi Aram c;! ,M Dubai Electricity. Water Authority PETROBRAS ji 1 ADNOC 41=4 TA K.REER Dhaka Nietro Rai] KAHRAMAA LI i31-0 Abu Dhabi Water & ElectricityAuthority A rriyad h Development Authority VIP P D 0 Petroleum Development Oman KNPC ee ENGINEERING I MANUFACTURING I CONSTRUCTION I PROJECTS I TECHNOLOGY FINANCIAL SERVICES e

17 16 Multiple Alliances & a Joint Ventures IHI ATOMSTROYEXPORT AIMCIERAI Alliances Too ENGINEERING CORPORATION GE:03 Roils-Royce HALDOR TOPSOE Technip CLYDE (;)41EMANN Joint Ventures Sargent 64 Lundy" itt MITSUBISHI HITACHI POWER SYSTEMS Hanwha Techwin AKER WERNER' Pre Qualifications?<A s ojitz CHIYODA 4 r Petroleum A AREVA Eni Snemprogetti M7TIMIR411 Befula anion Befula Investments IX* Lurgi OPARSONS KBR Note: Some of these are project specific alliances & pre qualifications ENGINEERING I MANUFACTURING CONSTRUCTION PROJECTS TECHNOLOGY FINANCIAL SERVICES KOBE STEEL LTD,

18 17 LEtT's L&T s Business Structure LARSEN Et & TOUBRO LTD. BUSINESS VERTICALS BUILDINGS Et & FACTORIES SUBSIDIARIES, JVs Ft & ASSOCIATES li - - LEtT L&T HYDROCARBON ENGINEERING TRANSPORTATION INFRASTRUCTURE FINANCIAL SERVICES HEAVY CIVIL INFRASTRUCTURE -LIT Et & TECHNOLOGY SERVICES WATER Et & EFFLUENT TREATMENT POWER TEO T&D POWER INFRASTRUCTURE SPVs (BOTs) H REALTY DEVELOPMENT MHPS JVs (BOILERS Et & TURBINE MFG.) - HEAVY ENGINEERING - DEFENCE ENGINEERING ELECTRICAL Et & AUTOMATION d OTHER d OTHER MANUFACTURING a & FABRICATION SUBSIDIARIES SERVICES AND OTHER SUBSIDIARIES a & ASSOCIATES ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

19 1 Presentation Outline 01 L&T Overview 02 Business Overview 03 Group Performance 04 The Environment & a the Outlook ENGINEERING I MANUFACTURING I CONSTRUCTION I PROJECTS I TECHNOLOGY I FINANCIAL SERVICES

20 19 Performance Highlights -Q2 Q2 FY19 +23% +27% +9% +21% +46% ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

21 20 20 Key Financial Indicators Amount in T bn Q2 FY1 Q2 FY19 % Var Particulars H1 FY1: H1 FY19 %Var% % Order Inflow % Order Book % Revenue from % Operations % (like-to-like) % EBITDA % % Reported PAT % Net Working Capital 20.7% 19.6% -110bps RONW (TTM) (%) bps ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

22 Q2/H1 FY19 Order Inflow/Order Book 46% 3 H1 FY1 67 Order Inflow % Mr Q2 FY1 Q2 FY19 H1 FY1 H1 FY19 Dorn Intl Donn Intl Order Book k H1 FY Amount in bn 71 Strong tendering activity in domestic market. Lower share of International order wins Public sector continues to drive order inflows. Private sector investment remains subdued Order Inflow growth in Q2 mainly driven by Infrastructure, Power Et & Heavy Engineering ,4100/ Dom Intl Dom Intl ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

23 22 Q2 FY1 Group Performance - Sales & a Costs Q2 FY19 % Var ` Billion H1 FY1 H1 FY19 % Var FY % Revenue (like-to-like) % 1,197 36% 33% -3% International Rev. 35% 34% -1% -1% 33% % MCO Exp % % Fin. Charge Opex* % % Staff Costs % % Sales & a Admin % % Total Opex % 1,063 * Finance cost of financial services business and finance lease activity Revenue growth primarily contributed by Infra, Hydrocarbon, Realty and Services businesses MCO expense improves through operating efficiencies and cost optimisation Rise in staff cost due to resource augmentation in services business Cost provisions, business development expenses and credit cost increase SGA expenses ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

24 23 Group Performance - EBITDA to PAT Q2 IL FY1 Q2 FY19 H1 FY19 FY % EBITDA % 136 (4) (4) 2% 2% Fin. Cost () () 1 () 1% (15) (4) (5) 20% Depreciation (10) (10) 4(12) 1% (19) % 6% Other Income 7-13% -13% % Exceptional items % 1 I % Var ` Billion H1 FY1 % Var (5) (9) 63% Tax Expense (10) (10) (1) 1% (32) (1) I (1) JV/SEtA JV/S&A PAT Share (1) 2 (4) I (2) (4) 1% Non-controlling Int. (3) (6) 4% (6) IN % PAT % 74 Services, Heavy Engineering, Defence Engineering a & Realty businesses drives EBITDA growth Efficient funds management contains finance cost Other income mainly comprises treasury earnings ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

25 24 Segment Performance Analysis ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES 24

26 25 Segment Composition _AR Infrastructure Power Of Heavy Engineering Electrical & Et Automation Defence Engineering Buildings & 0 Factories (B&F) (BEtF) Q EPC- Coal & Gas Process Plant Electrical Standard Transportation Infra (TI) Equipment Products Defence Heavy Civil infra (HC) Thermal Power Plant Electrical Systems Construction Nuclear Power Plant & 0 Equipment Water & 0 Effluent Treatment (WET) Equipment Aerospace Power MD T&D (PT&D) (PMD) Electrostatic Metering & 0 Protection Precipitator Metallurgical & 0 Mat. Handling (MMH) Piping Centre & 0 Power Equipment Forgings * Shipbuilding Q Smart World & Q Comm.(SWEtC) Comm.(SW&C) Control & Automation Mfg. * Hydrocarbon Developmental Projects 16D IT & Et TS Financial 1111D0 Services Others Onshore Offshore ". * Consolidated at PAT level Roads * Metros Power Information Technology Technology Services Rural Lending Housing Finance Wholesale Finance Asset Management Realty Industrial Products & 0 Machinery ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

27 26 H1 FY19 Order Inflow Composition Defence Engg. 1.7% EftA E&A HE 3.% 3.5% Power 3.3% Hydrocarbon 9.6% Services 20.4% Others 2.9% Infrastructure 54.% Order Inflow 71 Bn 71 Bn Middle East 6% USA Et & Europe 9% Domestic! 77% ROW % ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

28 27 H1 FY19 Order Book Composition Power 3.3% HE 1.% Defence Engg. 4.3% EEtA E&A 1.1% Infrastructure 77.6% Hydrocarbon 9.9% Others 2.0% Order Book 212 Bn 212 Bn Middle East 13% USA Et & Europe /- 1% N_ ROW % Domestic_- 7% ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

29 2 H1 FY19 Revenue Composition EftA E&A 4.4% Hydrocarbon Defence Engg. 11.7% 2.% HE 1.3% Power 3.5%...- reniemeep--- Services 26.3% Others 4.7% Revenue T 604 Bn Middle East 1.1% Infrastructure 45.3% USA Et & Europe 10.1% ROW 5.4% Domestic 66.4% ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

30 29 Infrastructure Segment Net Revenue Q2 FY1 Ca FY19 Amount in T bn 22% r t 7.4% EBITDA Margin 6.% H1 FY1 Net Revenue Dom Int H1 FY19 Strong growth witnessed across business verticals Pickup in domestic execution Margin reflects stage of execution Et & job mix 16% Dom Int 7.3% EBITDA Margin 6.% ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

31 1 30 Power Segment Amount in T bn Q2 FY1 Net Revenue Q2 FY19 36%.1 Dom Int Dom Int 5.4% EBITDA Margin 6.0% H1 FY1 Dom m Int I Net Revenue 3% I 6.0% H1 FY19 3.3% EBITDA Margin 5.0% 5.13 /0 Limited opportunities and aggressive competition in the sector continues to impact business performance Revenue decline reflects low order book Profits of MHPS and other JV companies are consolidated at PAT level under equity method L.. ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

32 31 31 Heavy Engineering Segment Amount in T bn Q2 FY1 Net Revenue Q2 FY19 52% I 22.% EBITDA Margin 24.2% H1 FY1 Net Revenue 41% Dom Int H1 FY19.., Revenue growth predominantly driven by Oil & Gas and Nuclear sectors International markets showing strong traction Global competence, better working capital management and job status yields strong margin mml Dom Int t 1.0% EBITDA Margin 29.1% ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

33 32 Defence Engineering Segment Amount in T bn Q2 FY1 Net Revenue Q2 FY19 6% Dom Int 10.6% i EBITDA Margin 25.0% Execution of tracked gun order contributing to revenues H1 FY1 4 look 15.1 Net Revenue 9% H1 FY19 Margin variation due to stage of execution and job mix im t Dom Int 5.3% EBITDA Margin 1.9% ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

34 33 il. Electrical & a Automation Segment Amount Q2 FY1 Net Revenue Q2 FY19 Amount in T bn 14% Dom t Int 15.3% EBITDA Margin 17.% H1 FY1 Net Revenue 14% 1 H1 FY19 Revenue growth mainly from Product business arising out of higher offtake from Buildings and Industrial verticals Margin growth led by operational efficiencies & a improved realisation 12.9% EBITDA Margin 15.6% ENGINEERING I MANUFACTURING I CONSTRUCTION I PROJECTS I TECHNOLOGY I FINANCIAL SERVICES

35 34 Hydrocarbon Segment Amount in T bn Q2 FY1 Net Revenue Q2 FY19 3% 1 Dom Int 10.7% EBITDA Margin 9.9% H1 FY1 Net Revenue 3% t H1 FY19 Higher Order Book and efficient execution leads to strong revenue growth Margin variation due to execution stage and job mix 4 Dom Int.7% EBITDA Margin.5% ENGINEERING I MANUFACTURING I CONSTRUCTION I PROJECTS I TECHNOLOGY I FINANCIAL SERVICES

36 35 Developmental Projects Segment Amount in T bn Q2 FY1 Net Revenue Q2 FY19 6% t I Nabha Hyd. Metro Nabha Hyd. Metro 32.2% EBITDA Margin 4.3% Net Revenue 36%.P. t Nabha Hyd. Metro H1 FY19 Nabha Kattupalli Port 17.5% EBITDA Margin 1.3% Segment includes Power Development business, Hyderabad Metro and Kattupalli Port (until divestment) Nabha Power revenue enhanced by higher PLF; PY includes lumpy revenue Hyderabad Metro: Partial CoD of 30 Km in Nov 2017 & 16 km in Sept 201 IDPL (Roads & TL) consolidated at PAT level under Equity method ENGINEERING I MANUFACTURING I CONSTRUCTION I PROJECTS I TECHNOLOGY I FINANCIAL SERVICES

37 36 36 LIT & a Technology Services Segment Q2 FY1 Net Revenue 32% t Q2 FY19 IT TS 21.7% EBITDA Margin 24.1% H1 FY1 Net Revenue 32% t H1 FY '" IT TS 21.6% EBITDA Margin 24.5% Amount in T bn Strong growth by LTI & a LTTS Focus on client mining and product offerings based on Digital & Et Other new technologies LTI Q2 revenue growth led by BFS, CPG, Retail & Et Pharma and High-Tech, Media & Et Entertainment verticals LTTS Q2 revenue growth led by Telecom & Et Hi-Tech, Transportation and Process Industry verticals EBITDA Margin improvement aided by currency and operational efficiencies ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

38 37 Others Segment p-----zzi Amount in T bn Q2 FY1 Net Revenue Q2 FY19 67% T 19.7% EBITDA Margin 23.1% H1 FY1 EBITDA Margin Net Revenue 60% H1 FY19 Segment comprises Industrial Products & Machinery (IPM) and Realty business; PY includes Welding Products Business Revenue & Margin growth largely contributed by Realty business Modest Revenue growth in Construction & a Mining Business Dom Int 20.5% EBITDA Margin 24.7% ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

39 1 3 Lai- L&T Finance Holdings Q2 FY1 Q2 FY1 FY19 %Var% ` Bn H1 FY1 H1 FY19 %Var% % Total Income % % PAT % Mutual Fund Average AUM % Net Loan Book % Gross Stage 33 Assets 11.0% 7.1% -35bps Net Stage 33 Assets 5.4% 2.% -261 bps Networth % Strong growth driven by Rural segment and Investment management businesses Focus on increased retailisation, stable NIMs, increase in fee based income and low credit costs with an overarching goal of delivering top quartile ROE Business is geared to handle ALM, Interest rate risk and liquidity in the current volatile environment Note: Gross Stage 3 Assets include GNPA> 90 DPD + Impaired assets (S4A, SDR, 5:25, etc.) where regulatory forbearances are available + Identified standard assets which are under incipient stress ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

40 39 Presentation Outline 01 L&T Overview 02 Business Overview 03 Group p Performance 04 The Environment & the Outlook ENGINEERING I MANUFACTURING I CONSTRUCTION I PROJECTS I TECHNOLOGY I FINANCIAL SERVICES

41 MOAT 40 The Environment & a the Outlook Central & State Govt. Spends PSU Capex MOAT Inflation Multilateral Funding Land Acquisition / ROW Bharatmala / Infra thrust Client Payments & Clearances IBC / Twin Balance Sheet Resolution Inflation / Commodity Prices Middle East Capex A,Oet. Robust Order Acquisitions NWC Control Control Value Monetisation Monetisation Payouts RoE Thrust Operational Excellence Divestments Efficient & Profitable Execution Asset Utilisation Budgetary Allocations Consumption trends Global Protectionist Policies Tax Revenues MOAT Nominal GDP Growth Election Outlook Pvt. Sector Capex Potential Trade Wars Currency Rural Infra Development Financialization of Savings MOAT Competition Fiscal Deficit / CAD Oil Prices New Geographies ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

42 41 Thank You Turn overleaf forannexures ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

43 42 Group Profit Et & Loss Extracts LEtT L&T Et & Fin. Devi. Devl. ` Billion IT & TS Others (Incl. Services Projects Eliminations) LEtT L&T Group Income from Operations* % EBITDA Other Income Interest Expenses Depreciation Provision for Taxes Share in profit/(loss) of JVs / Associates Adjustments for Non-Controlling Interest in SEtA S&A Exceptional Items (0.1) (1.3) (3.9) - (2.0) (0.0) (0.2) (3.6) - (4.2) (0.1) (0.) (1.7) (0.5) (6.) (.4) (10.1) (0.0) (0.0) (7.7) (11.6) (1.2) 1.6 (6.2) (7.6) (9.) (10.0) (1.5) (3.4) % -13% 1% 1% 1% 116% Net PAT % *Income from operations does not include Excise duty from 1st 1 July, 2017 L H1 FY19 H1 FY1 % Var ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

44 43 Balance Sheet 7 ` Billion Sep-1 Mar-1 Incr / (Decr) (Decry Equity Et & Reserves Non Controlling Interest Borrowings - Financial Services Development Projects Others Sources of Funds 1,60 1, Fixed Assets (1) Intangible Assets & Et Investment Property Loans towards Financing Activities Finance lease receivable (1) Net Non-Current Assets Current Investments, Cash Et & Cash Equivalents Net Current Assets Application of Funds 1,60 II 1,676i 14 ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

45 44 Cash Flow Q2 FY19 CAll Q2 FY1 Z ` Billion H1 FY19 H1 FY Operating Profit Profit (7.4) (10.0) Changes in in Working Capital (39.1) (44.5) (11.0) (9.0) Direct Taxes paid (20.5) (16.9) Net Cash from Operations (A) 10.9 (9.2) 1 (7.2) (7.6) (7.6) Net Investment in in Fixed Assets (incl. Intangible) (13.) (14.0) (10.6) 0. Net (Purchase)/ Sale of Long Term investments (7.3) (2.6) (66.0) (5.2) Net (Purchase)/ Sale of Current investments (1.7) (3.6) (0.3) (0.) Loans/Deposits made with JV/Associate Cos. (0.) (3.4) Interest Et & Dividend Received (3.3).(9.5) WATJ Net Cash from/(used in) Invest.. Act. (B) (100.3) (19.1) (1.5) Issue of Share Capital / Minority Minority Net Borrowings (55.2) (40.2) Disbursements towards financing activities* (72.2) (23.5) (32.) (29.5) Interest Et & Dividend paid (42.1) (36.1) 74.2 (19.6) Net Cash from Financing Activities (C) (17.4) Net (Dec) // Inc in in Cash Et & Bank (A+B+C) (6.) (3.1) ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

46 45 Share in Profit/(Loss) of JVs/Associates Q2 FY1 Q2 FY19 ` Bn H1 FY1 H1 FY (0.92) 0.39 (0.) MHPS JVs IDPL Et & Subs (1.33) (0.50) (0.35) Special Steels and Heavy Forgings (1.01) (0.71) (0.02) (0.13) Others 0.10 (0.14) (1.11) (0.96) Total 't. (1.4) 1.63 O. ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES

47 46 Concessions Business Portfolio - 14 SPVs Roads and Bridges: Portfolio: 10 projects (104 Km) 10 Operational Project Cost: 210 `10 bn Transmission Lines: Portfolio: 1 project (42 Km) - Operational Project Cost: Z15 `15 bn Balance Equity Commitment (Sep 201): ` Bn Equity Invested at SPV level (Sep 201): ` 3 Bn Total Project Cost (Sep 201): 2406 `406 Bn Metros: Portfolio: 1 project (71.16 Km) - Under-implementation Project Cost (Fin. Closure): 2170 `170 bn Power (Excl. Projects under DPR): Portfolio: 2 projects (1499 MW) 1 Operational Project Cost: 2112 `112 bn ENGINEERING I MANUFACTURING CONSTRUCTION I PROJECTS TECHNOLOGY FINANCIAL SERVICES

48 47 Major Opportunities Roads & Highways Roads & Highways - National & State Highways - Expressways - Special Bridges - Tunnels - Elevated Corridors Smart Cities Smart Cities - Surveillance systems - Optical fiber layout - Traffic mgmt system - Smart Grid - Wifi enabled Defence & Aerospace Defence & Aerospace - Landing Platform Docks - Artillery Gun programs - Submarines - Make Programs (TCS, BMS, FICV) - Other Naval Vessels Railways Railways - Metro Railways - Track laying / track modernization for conventional railways - Railway Electrification Power T&D Power T&D - Opportunities in overseas markets - Transmission Lines - Substations - Green Energy corridors - Solar EPC Hydrocarbon Hydrocarbon - Onshore projects in refineries and petrochemicals - Offshore projects - Fertilizer plants - Oil & Gas Pipelines Water Water - Water transmission & distribution - Lift Irrigation schemes - Water Treatment (Incl. Desal) - Effluent & Waste water Treatment (Incl. Namami Gange) Building & Factories Building & Factories - Airports - Residential Real Estate - Affordable & Mass Housing - Commercial Buildings - Hospitals & Medical Colleges - Hospitality - Factory Buildings Nuclear Power Nuclear Power - Indigenous plants - Nuclear Reactors - Steam generators ENGINEERING I MANUFACTURING 1 CONSTRUCTION I PROJECTS 1 TECHNOLOGY 1 FINANCIAL SERVICES