Corporate Management Integrated Statutory Financial

Overview Discussion and Analysis Report Reports Statements

OVERALL FINANCIAL As at March 31, 2024, the L&T Group comprised 86

subsidiaries, 5 associate companies, 26 joint ventures, and
REVIEW 2023-24 33 jointly held operations. Out of the total 150 entities,
36 companies belong to the listed subsidiaries, and 20
I. L&T CONSOLIDATED are associated with Development Projects. The rest of the
Against the backdrop of domestic economic resurgence entities in the Group are mostly strategic extensions of
amidst global volatility, the Group has recorded a the traditional businesses, viz. EPC Contracts and Hi-Tech
healthy performance across its businesses, spread across Manufacturing, to enable access to new geographies,
diverse sectors and geographies. The Company has technology, and nuanced business segments.
continued its focus towards the goal of maximising
shareholder value by utilising technology towards Order Inflow and Order Book
improving productivity and efficiency, timely &
profitable execution of its record order book, containing Order Inflow
working capital along with better funds management, 31.4%
� crore
and divesting assets identified for sale. � crore

During the year, the Company successfully completed its 360000

first-ever buyback of equity shares in alignment with the 302812 13109
300000 4%, (5
long-term Lakshya 2026 plan to enhance shareholder
value. Additionally, as part of the strategy to exit 240000 230528
44473
non-core businesses, on April 10, 2024, the Company 163112 54%
15%, (18%)
completed the divestment of its entire shareholding 180000 38% 86523
in L&T Infrastructure Development Projects Limited, a 14278
joint venture primarily engaged in the development 120000 5%, (7%
and operation of toll roads and a power transmission 62% 144005 139700 46%
60000
asset. Further, the Company also sold its entire stake in
L&T Infrastructure Engineering Limited (LTIEL) to STUP 0
Consultants Private Limited, a subsidiary of Assystem SA 2022-23 2023-24
of France, to remain focussed on its core offerings. Domestic International Total Or
During the year, the Company successfully [F
commissioned its first indigenously manufactured
Order Inflow
electrolyser at the Green Hydrogen Plant at A. M.
Order Inflow Composition
Naik Heavy �Engineering
crore Complex in 31.4%Hazira, Gujarat.
� crore
This pioneering accomplishment signifies L&T 5620 8956
360000
Electrolysers Limited's foray into domestic electrolyser 2%, (2%) 3%, (4%) Infrastructure Projects
13109
manufacturing,
300000
underscoring the Company's steadfast
302812
4%, (5%) Energy Projects
dedication to propelling sustainable energy solutions. Hi-Tech Manufacturing
The Company
240000also launched its first Data Center Pilot
230528
44473 IT & Technology
163112 54% Services
project at Panvel, Mumbai, with a capacity of ~1.4 MW. 15%, (18%)
180000 38% 86523 Financial Services
The Group has also forayed into fabless semiconductor 14278 Development Projects
chip design during the year by incorporating L&T
120000 5%, (7%) Others
62% 144005
Semiconductor Technologies Limited (LTST), a wholly-
139700 46%
142589
60000
owned subsidiary. A fabless semiconductor company 73788
47%, (51%)
specialises in the
0 design and creation of semiconductor 24%, (13%)
chips without owning or 2022-23
operating semiconductor 2023-24

manufacturing facilities. Domestic International Total Order Inflow: ₹ 3,02,812 crore during the year 2023-24
[Figures in brackets relate to previous year]
The financial services business of the Group, during
the year, also concluded the merger of L&T Finance
L&T Group achieved order inflows of � 3,02,812 crore
Holdings Ltd. and its wholly owned subsidiaries, viz. L&T
during FY 2023-24, registering a growth of 31.4% over
Finance Ltd., L&T Infra Credit Ltd. and L&T Mutual Fund
the previous year. Growth was largely driven by the strong
Trustee Ltd., resulting in the creation of a single lending
investment momentum in the Middle East region, further
entity – L&T Finance Holdings. Further, the name of L&T
complemented by the Government of India’s CapEx push.
Finance Holdings Ltd. has been changed to L&T Finance
The buoyancy in Middle East orders led to an increase in
Ltd. This merger leads to the creation of a simplified
the share of international order inflow to 54% from 38%
'Single Lending Entity' and will create internal synergies,
in the previous year.
superior governance, and newer avenues for growth.

29
 Overall Financial
Review

The year witnessed the booking of some noteworthy orders As at March 31, 2024, the order book is at a record
in the Urban Transit space, including another package for level of � 4,75,809 crore, thereby providing a multi-
Mumbai-Ahmedabad High-Speed Rail in the Heavy Civil year revenue visibility for the Group. The infrastructure
business, a few orders in the residential vertical of Buildings segment continues to dominate with a share of 65% of the
& Factories business, multiple renewable energy projects consolidated order book.
from the Middle East under the Power Transmission & The order book registered a growth of 19.8% on a y-o-y
Distribution business, Electrification Work package for basis, mainly with the receipt of some high-value orders
Mumbai-Ahmedabad High-Speed Rail, and a road project during the year. Around 77% of the total order book
in Mumbai in Transportation Infrastructure, a couple of comprises orders received from Indian Central and State
orders in ferrous metal space, a major order from Ministry Governments (including local authorities) and State-owned
of Defence in the Precision Engineering & Systems business, Enterprises (both domestic and international). The private
a mega order in the Offshore vertical, and few ultra-mega sector has marginally declined and has a share of 23% of
orders in the Onshore vertical of the Hydrocarbon business. the total order book as on March 2024, as against 25% as
With higher ordering in the Energy segment primarily on March 2023. Of the domestic order book, 29% of the
due to CapEx acceleration in the Middle East region, the orders are funded by multilateral agencies.
contribution of the Infrastructure segment in the overall The share of the international order book increased
order inflow has decreased to 47% from 51% in the from 28% to 38% on account of the intake of higher
previous year, while continuing to remain the largest international orders during the year.
segment in the Company’s business portfolio.
Order Book Consolidated Revenue from Operations
Order Book Composition
� crore 19.8% � crore
Revenue from Operations
31975 13981
500000 475809 7%, (7%) 3%, (3%) 20.6%
� crore
Infrastructure
397033 Projects
400000 180861 38% 240000
221113
28% 111779
Energy Projects
300000 118189 200000 183341
25%, (18%)
Hi-Tech
95086 43%
200000 Manufacturing
160000
72% 285254 294948 62% 38% 68787
100000 Others
120000 311665
65%, (72%)
0
As at 31-03-2023 As at 31-03-2024 80000
126027 57%
Domestic International Total Order Book: ₹62% 114554
4,75,809 crore as at March 31, 2024
40000 in brackets relate to previous year]
[Figures

0
2022-23 2023-24
Order Book Composition Domestic International
� crore

31975 13981 L&T Group recorded revenue of � 2,21,113 crore during

7%, (7%) 3%, (3%) FY 2023-24, registering a growth of 20.6%. The growth
Infrastructure
Projects was mainly achieved with the pick-up of execution
38%
momentum in project and manufacturing businesses. The
Energy Projects
118189 composition of international revenue at the group level is at
25%, (18%)
Hi-Tech 43% in FY 2023-24 compared to 38% in the previous year.
Manufacturing
62%
Others
311665
65%, (72%)

2024
Total Order Book: ₹ 4,75,809 crore as at March 31, 2024
[Figures in brackets relate to previous year]

30 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

� crore Segment-wise Revenue

120000

100000

80000

60000

40000

20000

0
Infrastructure Energy Hi-Tech IT & Technology Financial Development
Projects Projects Manufacturing Services Services Projects Others

FY 2022-23 87823 24956 7161 41789 12575 5029 6271

FY 2023-24 114008 29571 8765 44916 13109 5628 8493

During the year, all the segments registered growth over the previous year, with the Infrastructure segment leading the pack.

Operating Expenses and PBDIT Staff expenses for FY 2023-24 at � 41,171 crore
increased by 10.6% over the previous year, reflecting a
combination of manpower ramp-up and salary revisions.
Although, as a percentage of revenue, it decreased by
� crore Operating Expenses and PBDIT
~170 bps during FY 2023-24, consequent upon higher
250000 revenue. The Group continues to focus on productivity
improvements, digitalisation, and manpower optimisation
23494 across its businesses.
200000
10419
20753 Sales and administration expenses at � 10,419 crore
41171
150000
8758 increased by 19.0% over the previous year. This represents
37214 4.7% of revenue, which is almost in line with the
previous year.
100000
The Group’s operating profit at � 23,494 crore for FY
146029 2023-24 registered a growth of 13.2% y-o-y, largely due to
116615
50000
higher business volumes. The EBITDA margin for the year,
however, declined by 70 bps and is at 10.6%.
0
2022-23 2023-24 The impact of additional execution costs incurred in the
Infrastructure segment and higher provisions on contract
Mfg., Construction & Staff Expenses
Operating Expenses assets and customer receivables impacted the Company’s
Sales, Administration & Operating Profit (PBDIT) overall margin. At the same time, cost savings in projects of
Other Expenses
the Energy segment, higher NIM in Financial Services, and
sale of commercial property along with improved ridership
Manufacturing, Construction and Operating (MCO)
in Hyderabad Metro, partially mitigated the impact.
expenses for FY 2023-24 at � 1,46,029 crore increased
by 25.2% over the previous year. These expenses mainly Depreciation and Amortisation Charge
comprise the cost of construction materials, raw materials
Depreciation and amortisation charges for FY 2023-24
and components, sub-contracting expenses, and interest
increased to � 3,682 crore from � 3,502 crore in the
costs in the Financial Services business. This represents
previous year, registering an increase of 5.1%, mainly
66.0% of revenue as compared to 63.6% in the previous
reflective of higher CapEx spending in recent years.
year, mainly on account of cost overruns encountered in a
few projects and changes in job mix.

31
 Overall Financial
Review

Profit Before Interest and Tax

Segment-wise composition of PBIT for FY 2023-24 is represented below:

� crore Segment-wise PBIT

9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Infrastructure Energy Hi-Tech IT & Technology Financial Development

Services Services Projects Others
Projects Projects Manufacturing
FY 2022-23 5140 2067 995 7215 2259 392 1103
FY 2023-24 5721 2701 1140 7659 3028 1015 1508

The segment-wise PBIT registered improvement over the previous year across all businesses. The PBIT of Development Projects
is higher during the year primarily due to a non-recurring gain on the sale of commercial property in Hyderabad Metro.

Other Income of the Financial Services, partially offset by a one-time

This mainly consists of interest, dividend, and gains charge on remeasurement of the wholesale loan assets of
from treasury operations. Other income at � 4,158 crore the Financial Services segment at fair value.
improved by 42.0% over � 2,929 crore for the previous
year, reflective of gain on sale/fair valuation of investments Consolidated Profit after Tax and EPS
and efficient treasury operations. Consolidated Profit after Tax (PAT) at � 13,059 crore for
FY 2023-24 increased by 24.7% over the previous year at
Finance Cost � 10,471 crore. The increase is mainly due to growth in
The interest expenses for FY 2023-24 at � 3,546 crore revenues and improved treasury operations.
were higher by 10.6% over � 3,207 crore for the previous Consolidated Basic Earnings per Share (EPS) for FY 2023-24
year. The increasing average borrowing at a group level at � 93.96 improved over the previous year at � 74.51.
was partly offset by the reduction in the borrowing in
Hyderabad Metro. The interest cost for FY 2023-24 was Return on Consolidated Net Worth
higher by 30 bps as compared to the previous year. The Consolidated Net Worth, as on March 31, 2024, at
� 86,359 crore, reflects a net decrease of � 2,967 crore,
Tax Expense
as compared to the position as on March 31, 2023. The
Income Tax charge for FY 2023-24 was higher at � 4,947 Return on Net Worth (RONW) for FY 2023-24 was higher at
crore by 10.3% compared to � 4,484 crore in the previous 14.9%, compared to 12.2% in the previous year, mainly on
year on higher taxable income. account of higher profits and share buyback.
Exceptional Items Liquidity & Gearing
Exceptional items during the year mainly comprise gain on Cash flow from Operations (including change in loans
the divestment of stake in L&T Transportation Infrastructure and advances towards financing activities) for FY 2023-24
Limited, a subsidiary of L&T IDPL and reversal of impairment decreased to � 18,266 crore as compared to � 22,777 crore
of investment in L&T IDPL. The previous year mainly in the previous year, mainly due to build-up of customer
included a gain on divestment of the Mutual Fund business outstanding and higher contract assets from an increase

32 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

in business volumes. During the year, additional funds Power, partly offset by a higher level of borrowing at the
were generated mainly from the divestment of commercial Parent level. At a group level, the gross debt-to-equity ratio
property in Hyderabad Metro, treasury and dividend income decreased to 1.11:1 as at March 31, 2024, from 1.14:1 as
and investment sales. at March 31, 2023. However, the net debt-to-equity ratio
Funds were utilised mainly for repayment of borrowings of marginally increased to 0.64:1 as at March 31, 2024, from
� 4,513 crore, capital expenditure of � 4,210 crore, and 0.62:1 as at March 31, 2023.
payment of dividend of � 4,217 crore. Further, funds were Details of significant changes in key financial ratios along
utilised for the buyback of equity shares � 12,280 crore with explanation:
(including tax and expenses on buyback) and net interest
In compliance with the requirement of SEBI (Listing
payment of � 3,605 crore (attributable to the level of
Obligations and Disclosure Requirements) Regulations,
Borrowing) during FY 2023-24.
2015, the key financial ratios of the Group have been
Consequently, there was a net decrease of � 4,984 crore in provided hereunder along with the explanation only for
the cash balances as of March 31, 2024, compared to the the significant changes, i.e., change of 25% or more as
beginning of the financial year. compared to the previous financial year:

Consolidated Fund Flow Statement � crore Sr. No Particulars FY 2022-23 FY 2023-24 % Growth
Particulars FY 2022-23 FY 2023-24 (i) Gross Debt 1.14 1.11 2.8%
Equity Ratio
Operating Activities 22,777 18,266
(ii) PBDIT as 11.3% 10.6% -6.1%
Net Divestment 2,670 1,000
% of net
Treasury and Dividend 1,767 2,634 revenue
Income
(iii) Net Working 16.1% 12.0% 25.9%
Sale/(Purchase) of (8955) 2739 Capital % of
investments Sales*
(Excluding
ESOP Proceeds (Net) 10 10
Financial
Decrease/(Increase) in cash (2893) 4,984 Services &
balance Corporate)

Source of Funds 15,376 29,633 (iv) Interest 5.45 5.79 6.2%

Coverage
Capital expenditure (Net) 3,793 4,210 ratio
Repayment of borrowings 4,832 4,513 (excludes
Financial
Dividend Paid 3,091 4,217 Services
Interest Paid 3,047 3,605 and Finance
Lease
Payment to minority interest 613 808 Activity)
(net)
* The significant change in the Net Working Capital % of
Buyback of equity shares Sales for FY 2023-24 has been due to better collections and
(Incl. tax and expenses on - 12,280 efficient working capital management.
buyback)

Utilisation of Funds 15,376 29,633 II. L&T STANDALONE

L&T’s standalone financials reflect the performance
The total Group borrowings as at March 31, 2024, was of Infrastructure Projects, Energy Projects, Hi-Tech
lower at � 1,14,040 crore compared to � 1,18,513 crore Manufacturing, and Others. The Others segment comprises
as at March 31, 2023. The major decrease is in borrowings Realty, Smart World & Communication, Construction
of the Financial Services, Hyderabad Metro and Nabha & Mining Machinery, Rubber Processing Machinery,
E-commerce/digital platforms, and Data Centers.

33
 Overall Financial
Review

Brief Summary of Performance at Standalone Level: There was a net increase of � 133 crore in the cash
balances as at March 31, 2024, compared to the beginning
� crore of the year.
Particulars FY 2022-23 FY 2023-24 % Growth
Fund Flow Statement � crore
Order Inflow 1,49,984 1,71,663 14%
Particulars FY 2022-23 FY 2023-24
Share of 20% 35% Operating activities 7,264 8,294
International
Order Inflow Borrowings/(Repayment of (2,027) 4,232
Borrowings)
Revenue 1,10,501 1,26,236 14%
Sale/(Purchase) of Other (2,904) 4,645
Share of 17% 21% investments
International
Revenue Treasury and dividend 3,035 4,690
income
Order Book 3,30,555 3,71,381 12%
ESOP Proceeds 10 10
Share of 15% 23%
International Sources of Funds 5,378 21,871
Order Book
Capital expenditure (Net) 2,236 2,822
PBDIT 9,295 9,685 4%
Net investment/(Divestment) (352) 151
PAT 7,849 9,304 19%
Dividend paid 3,091 4,217
Net Worth 71,528 64,416 (10)%
Interest paid 2,333 2,268
RONW (%) 11.3% 13.7%
Buyback of shares (Including
- 12,280
EPS (in Rs.) 55.85 66.95 buyback expenses and tax)

Increase/(Decrease) in (1,930) 133

Liquidity & Gearing
cash balance
Business operations generated cash flows of � 8,294
crore during the year, compared to � 7,264 crore in the Utilisation of Funds 5,378 21,871
previous year. The increase is attributable to improved
working capital management. During the year, additional Total borrowings as at March 31, 2024, increased to
funds were borrowed to support an increase in business � 22,540 crore, compared to � 18,151 crore in the previous
volumes. The proceeds from cash generated through the year. The loan portfolio of the Company comprises a mix
sale of investments � 4,645 crore, treasury income of of Rupee and suitably hedged foreign currency loans. The
� 2,041 crore, and dividend income from S&A companies gross debt-to-equity ratio increased to 0.35:1 as at March
at � 2,649 crore have been utilised towards Share Buyback 31, 2024, from 0.25:1 as at March 31, 2023. The net debt
(including expenses and tax) of � 12,280 crore, CapEx ratio as at March 31, 2024, is 0.02:1 after netting off cash
payment of � 2,822 crore, a dividend payment of � 4,217 and cash equivalents.
crore, and interest payment of � 2,268 crore.

34 Integrated Annual Report 2023-24