Standalone and Consolidated Results 2021-22 Q2

LARSEN & TOUBRO LIMITED

Registered Office: L&T House, Ballard Estate, Mumbai 400 001

CIN : L99999MH1946PLC004768

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2021

			Quarter ended		Six months ended	Year ended
	Particulars	September 30,	June 30,	September 30,	September 30,	September 30,	March 31,
	2021	2021	2020	2021	2020	2021
		[Reviewed]	[Reviewed]	[Reviewed]	[Reviewed]	[Reviewed]	[Audited]
1	Income:
a)	Revenue from operations	17061.00	13109.00	15791.68	30170.00	23941.67	73315.59
b)	Other income(net)	1353.77	670.49	935.15	2024.26	1633.41	3435.44
	Total Income	18414.77	13779.49	16726.83	32194.26	25575.08	76751.03
2	Expenses:
a)	Manufacturing, construction and operating expenses:
	i) Cost of raw materials and components consumed	1464.97	1287.44	1331.87	2752.41	2136.63	5693.94
	ii) Stores, spares and tools consumed	540.27	388.32	413.67	928.59	595.93	1418.59
	iii) Sub-contracting charges	4503.88	2920.73	4208.64	7424.61	5861.71	19625.19
	iv) Construction materials consumed	5368.36	3648.97	4223.93	9017.33	6008.21	22426.38
	v) Purchases of stock-in-trade	251.54	239.46	299.99	491.00	441.10	1226.68
	vi) Changes in inventories of finished goods, stock-in-trade and work-in-progress	(521.83)	(362.83)	394.69	(884.66)	249.92	342.53
	vii) Other manufacturing, construction and operating expenses	1883.94	1772.53	1690.62	3656.47	3033.76	7556.80
b)	Employee benefits expense	1567.43	1543.25	1399.09	3110.68	2756.19	5474.32
c)	Sales, administration and other expenses	599.70	645.28	598.35	1244.98	1045.78	2285.01
d)	Finance costs	424.21	466.92	656.40	891.13	1364.85	2419.55
e)	Depreciation, amortisation, impairment and obsolescence	261.25	260.27	249.42	521.52	484.18	1025.62
	Total Expenses	16343.72	12810.34	15466.67	29154.06	23978.26	69494.61
3	Profit before exceptional items and tax (1-2)	2071.05	969.15	1260.16	3040.20	1596.82	7256.42
4	Tax expense:
a)	Current tax	346.67	219.56	193.15	566.23	244.15	1434.27
b)	Deferred tax	(33.77)	(0.38)	15.46	(34.15)	19.47	317.01
	Total tax expense	312.90	219.18	208.61	532.08	263.62	1751.28
5	Net profit after tax (before exceptional items) from continuing operations (3-4)	1758.15	749.97	1051.55	2508.12	1333.20	5505.14
6	Exceptional items:
a)	Exceptional items before tax	290.06	-	(2818.65)	290.06	(2818.65)	(2818.65)
b)	Tax expense on exceptional items	22.77	-	-	22.77	-	-
	Exceptional items (net of tax)	267.29	-	(2818.65)	267.29	(2818.65)	(2818.65)
7	Net profit/(loss) after tax from continuing operations (5+6)	2025.44	749.97	(1767.10)	2775.41	(1485.45)	2686.49
8	Profit before tax from discontinued operations	-	-	10986.39	-	11019.73	11199.23
9	Tax expense of discontinued operations	-	-	2502.78	-	2511.19	2548.75
10	Net profit after tax from discontinued operations	-	-	8483.61	-	8508.54	8650.48
11	Net profit after tax from continuing operations & discontinued operations (7+10)	2025.44	749.97	6716.51	2775.41	7023.09	11336.97
12	Other comprehensive income/(loss) [net of tax]	(38.57)	150.19	162.73	111.62	382.25	491.55
13	Total comprehensive income (11+12)	1986.87	900.16	6879.24	2887.03	7405.34	11828.52
14	Paid-up equity share capital (face value of share: 2 each)	280.93	280.92	280.81	280.93	280.81	280.91
15	Other equity						60132.63

16 Earnings per equity share (EPS) from continuing operations after exceptional items (not annualised):

(a) Basic EPS ( )	14.42	5.34	(12.59)	19.76	(10.58)	19.13
(b) Diluted EPS ( )	14.40	5.33	(12.59)	19.74	(10.58)	19.11
17 Earnings per equity share (EPS) from discontinued operations (not annualised):
(a) Basic EPS ( )	-	-	60.42	-	60.60	61.61
(b) Diluted EPS ( )	-	-	60.42	-	60.60	61.54

18 Earnings per equity share (EPS) from continuing operations & discontinued operations (not

annualised):
(a) Basic EPS ( )	14.42	5.34	47.83	19.76	50.02	80.74
(b) Diluted EPS ( )	14.40	5.33	47.83	19.74	50.02	80.65

Notes:

1. Exceptional items (net of tax) at 267.29 crore for the quarter ended September 30, 2021 represent gain of (a) 128.60 crore on divestment of stake in L&T Uttaranchal Hydro Power Limited on August 30, 2021 and (b) 138.69 crore on transfer of NxT digital business to Mindtree Limited, a subsidiary, with effect from July 1, 2021.
2. The Board of Directors of the Company at its meeting held on July 26, 2021, has approved a Scheme of Arrangement for amalgamation of L&T Hydrocarbon Engineering Limited, a wholly-owned subsidiary with the Company with the proposed Appointed Date of April 1, 2021. The said scheme is subject to necessary statutory and regulatory approvals.
3. During the quarter ended September 30, 2021, the Company has allotted 51,099 equity shares of 2 each fully paid-up, on exercise of stock options by employees in accordance with the Company's stock option schemes.
4. The Company will assess the impact of Code on Wages, 2019 and the Code on Social Security, 2020 and give effect in the Financial Statements when the date of implementation of these codes and the Rules/Schemes thereunder are notified.
5. For better understanding of the Company's financial performance, line items have been added to show Profit after tax from continuing operations separately from exceptional items. This is in line with guidance available in Schedule III to the Companies Act, 2013.

1. Statement of assets and liabilities as per Regulation 33(3)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended:

			Crore
	As at
Particulars	September 30,		March 31,
2021		2021
	[Reviewed]		[Audited]
ASSETS:
Non-current assets
Property, plant and equipment	7231.61		7462.21
Capital work-in-progress	360.32		236.12
Investment property	411.20		421.61
Intangible assets	50.24		55.39
Intangible assets under development	69.29		48.01
Right-of-use assets	414.82		417.37
Financial assets:
Investments	27889.41		28569.12
Loans	3838.90		2449.39
Other financial assets	446.71		521.50
Deferred tax assets(net)	495.11		494.00
Other non-current assets	3899.45		3646.05
Sub total - Non-current assets	45107.06		44320.77
Current assets
Inventories	3047.78		2858.56
Financial assets:
Investments	16473.57		18454.40
Trade receivables	27183.61		29948.24
Cash and cash equivalents	2631.39		3112.69
Other bank balances	645.78		650.59
Loans	1.58		87.67
Other financial assets	2095.74		2040.29
Other current assets	47287.85		46479.35
Sub total - Current assets	99367.30		103631.79
TOTAL ASSETS	144474.36		147952.56
EQUITY AND LIABILITIES:
EQUITY
Equity share capital	280.93		280.91
Other equity	60521.85		60132.63
Equity	60802.78		60413.54
LIABILITIES
Non-current liabilities
Financial liabilities:
Borrowings	12139.06		15868.21
Lease liability	49.93		59.99
Other financial liabilities	77.78		82.63
Provisions	657.46		639.02
Sub total - Non-current liabilities	12924.23		16649.85
Current liabilities
Financial liabilities:
Borrowings	5525.56		6940.94
Current maturities of long term borrowings	4774.37		999.56
Lease liability	113.95		104.18
Trade payables:
Due to micro enterprises and small enterprises	221.54		351.47
Due to others	33018.88		37118.33
Other financial liabilities	2428.43		2159.41
Other current liabilities	22843.63		21499.49
Provisions	1451.73		1320.01
Current tax liabilities(net)	369.26		395.78
Sub total - Current liabilities	70747.35		70889.17
TOTAL LIABILITIES	83671.58		87539.02
TOTAL EQUITY AND LIABILITIES	144474.36		147952.56

1. Statement of Cash Flows as per Regulation 33(3)(g) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended:

		crore
	September 30,	September 30,
Particulars	2021	2020
	[Reviewed]	[Reviewed]

A. Cash flow from operating activities:
	Profit before tax (excluding exceptional items) from:
	Continuing operations	3040.20	1596.82
	Discontinued operations	-	11019.73
	Profit before tax including discontinued operations (excluding exceptional	3040.20	12616.55
	items)
	Adjustments for:
	Gain on transfer of discontinued operations	-	(10897.11)
	Dividend received	(1081.23)	(660.25)
	Depreciation, amortisation, impairment and obsolescence (net)	521.52	484.18
	Exchange difference on items grouped under financing/investing activities	(21.85)	11.80
	Effect of exchange rate changes on cash and cash equivalents	(16.35)	50.38
	Interest expense	891.13	1364.85
	Interest income	(477.23)	(447.09)
	(Profit)/loss on sale of fixed assets (net)	(2.63)	(2.82)
	(Profit)/loss on sale of investments (net) [including fair valuation]	(220.66)	(485.20)
	Lease rental concession	-	(0.33)
	Employee stock option-discount forming part of employee benefits expense	23.08	22.93
	Non-cash items related to discontinued operations	-	2.83
	Operating profit before working capital changes	2655.98	2060.72
	Adjustments for:
	(Increase)/decrease in trade and other receivables	1933.73	5326.04
	(Increase)/decrease in inventories	(179.89)	7.03
	Increase/(decrease) in trade payables and customer advances	(2378.62)	(6577.27)
	Cash (used in)/generated from operations	2031.20	816.52
	Direct taxes refund/(paid) [net]	(813.72)	(469.13)
	Net cash (used in)/from operating activities	1217.48	347.39
B.	Cash flow from investing activities:
	Purchase of fixed assets	(348.82)	(336.30)
	Sale of fixed assets (including advance received)	20.04	31.51
	Investment in subsidiaries, associates and joint venture companies	-	(360.14)
	Divestment of stake in subsidiary companies	782.10	260.00
	Net proceeds from transfer of NxT business undertaking	99.00	-
	Net proceeds from transfer of discontinued operations (net of tax)	(47.64)	11908.77
	(Purchase)/sale of current investments (net)	2096.14	(18313.01)
	Change in other bank balances and cash not availabe for immediate use	128.77	(603.51)
	Long term deposits/loans (given) - subsidiaries, associates, joint venture
	companies and third parties	(1215.94)	(1456.15)
	Long term deposits/loans repaid - subsidiaries, associates, joint venture
	companies and third parties	7.53	2015.63
	Short term deposits/loans (given)/repaid (net) - subsidiaries, associates, joint
	venture companies and third parties	0.17	(1445.12)
	Interest received	447.04	363.03
	Dividend received from subsidiaries and joint venture companies	1078.41	659.79
	Dividend received from other investments	2.69	-
	Net cash (used in)/from investing activities	3049.49	(7275.50)
C.	Cash flow from financing activities:
	Proceeds from fresh issue of share capital (including share application money)[net]	4.04	5.19
	Proceeds from non-current borrowings	450.00	9117.81
	Repayment of non-current borrowings	(6.31)	(3391.03)
	(Repayments)/Proceeds from other borrowings (net)	(1411.40)	2642.64
	Settlement of derivative contracts related to borrowings	31.93	(32.59)
	Interest paid on lease liability	(5.87)	(5.61)
	Principal repayment on lease liability	(40.84)	(42.04)
	Dividends paid	(2528.38)	(1123.23)
	Interest paid (including cash flows from interest rate swaps)	(1262.04)	(1122.76)
	Net cash (used in)/from financing activities	(4768.87)	6048.38
	Net (decrease)/increase in cash and cash equivalents (A + B + C)	(501.90)	(879.73)
	Cash and cash equivalents at beginning of the year	3112.69	3262.83
	Effect of exchange rate changes on cash and cash equivalents	20.60	(51.94)
	Cash and cash equivalents at end of the year	2631.39	2331.16

Notes:

1. Statement of Cash Flows has been prepared under the indirect method as set out in the Indian Accounting Standard (Ind AS) 7 "Statement of Cash Flows" as specified in the Companies (Indian Accounting Standards) Rules, 2015.
2. Fixed assets include property, plant and equipment, investment property and intangible assets adjusted for movement of (a) capital work-in-progress for property, plant and equipment and investment property and (b) Intangible assets under development during the period.

(viii) Additional disclosures as per Regulation 52(4) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

Sr. No.

Particulars

• Debt-equityratio

(Total borrowings divided by Equity)

• Debt service coverage ratio (DSCR)

• Profit before interest, exceptional items and profit from discontinued operations divided by (Interest expense together with principal repayments of longterm borrowings during the period and cash flow on settlement of derivatives contracts related to borrowings)

As at September As at September	As at March
30, 2021	30, 2020	31, 2021
0.37	0.58	0.39
4.38	0.62	1.66

3 Interest service coverage ratio (ISCR)

4.41

2.17

4.00

(Profit before interest, exceptional items and profit from discontinued operations divided by interest expense)

4 Current ratio

1.51

1.46

1.48

(Current assets divided by current liabilities excluding current maturities of long term borrowings)

5	Long term debt to working capital	0.51	0.48	0.50
	(Long term borrowings including current maturities of long term borrowings divided by working capital (working capital refers to net current assets
	arrived after reducing current liabilities excluding current maturities of long term borrowings from current assets)
6	Bad debts to accounts receivable ratio	0.00	0.00	0.01
	(Bad debts written off divided by gross trade receivables)
7	Current liability ratio	0.79	0.81	0.80
	(Current liability excluding current maturities of long term borrowings divided by total liabilities)
8	Total debts to total assets	0.16	0.23	0.16
	(Total borrowings divided by total assets)
9	Debtors turnover	2.79	2.60	2.33
	(Revenue for trailing 12 months divided by average gross trade receivables)
10	Inventory turnover	-	-	-
	(Not material considering the size and the nature of operations of the Company)
11	Operating margin	8.05%	7.57%	9.91%
	(PBDIT excl. other income and profit from discontinued operations divided by revenue from operations)
12	Net profit margin	9.20%	29.33%	15.46%
	(Profit after tax incl. profit from discontinued operations divided by revenue from operations)
13	Total Borrowings [ Crore]	22438.99	34156.98	23808.71
14	Debenture Redemption Reserve [ Crore]	138.65	138.65	138.65
15	Net worth [ Crore] (As per section 2(57) of Companies Act, 2013)	60594.41	58450.84	60303.20

16 The Company continues to maintain 100% asset cover for the NCDs issued by it.

1. Figures for the previous periods have been regrouped/reclassified to conform to the classification of the current periods.
2. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on October 27, 2021.The same have also been subjected to Limited Review by the Statutory Auditors.

for LARSEN & TOUBRO LIMITED

Mumbai	R. SHANKAR RAMAN
October 27, 2021	Whole-time Director & Chief Financial Officer

Standalone unaudited segment-wise Revenue, Result, Total assets and Total liabilities in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended:

			Quarter ended		Six months ended	Year ended
	Particulars	September 30,	June 30,	September 30,	September 30,	September 30,	March 31,
	2021	2021	2020	2021	2020	2021
		[Reviewed]	[Reviewed]	[Reviewed]	[Reviewed]	[Reviewed]	[Audited]
Gross segment revenue
1	Infrastructure	13402.49	9781.99	12451.48	23184.48	18491.65	58364.15
2	Power	1118.16	764.48	688.69	1882.64	1068.69	3192.64
3	Heavy Engineering	687.66	629.76	708.05	1317.42	1133.18	3018.23
4	Defence Engineering	845.95	690.05	768.81	1536.00	1245.30	3410.12
5	Electrical & Automation (discontinued operations)	-	-	697.06	-	1262.74	1262.74
6	Others	1094.43	1315.72	1225.37	2410.15	2101.93	5660.86
	Total	17148.69	13182.00	16539.46	30330.69	25303.49	74908.74
	Less: Revenue of discontinued operations	-	-	697.06	-	1262.74	1262.74
	Less : Inter-segment revenue	87.69	73.00	50.72	160.69	99.08	330.41
Net segment revenue from continuing operations	17061.00	13109.00	15791.68	30170.00	23941.67	73315.59
Segment results
1	Infrastructure	918.86	516.70	646.76	1435.56	885.48	4274.16
2	Power	22.08	10.97	12.58	33.05	7.69	111.42
3	Heavy Engineering	85.86	86.65	18.71	172.51	74.20	489.47
4	Defence Engineering	86.81	110.71	150.83	197.52	175.78	616.98
5	Electrical & Automation (discontinued operations)	-	-	89.28	-	122.62	120.91
6	Others	162.17	117.39	96.58	279.56	130.40	773.64
	Total	1275.78	842.42	1014.74	2118.20	1396.17	6386.58
	Less : Result of discontinued operations	-	-	89.28	-	122.62	120.91
	Less : Inter-segment margins on capital jobs	-	-	-	-	1.68	11.11
	Less : Finance costs	424.21	466.92	656.40	891.13	1364.85	2419.55
	Add : Unallocable corporate income net of expenditure	1219.48	593.65	991.10	1813.13	1689.80	3421.41
Profit before tax from continuing operations (before exceptional items)	2071.05	969.15	1260.16	3040.20	1596.82	7256.42
	Add/(Less) : Exceptional items(net)	290.06	-	(2818.65)	290.06	(2818.65)	(2818.65)
Profit/(loss) before tax from continuing operations (including exceptional items)	2361.11	969.15	(1558.49)	3330.26	(1221.83)	4437.77
Segment assets
1	Infrastructure				70015.09	67469.87	71165.62
2	Power				5463.55	5141.98	5518.52
3	Heavy Engineering				3115.97	3296.13	3165.37
4	Defence Engineering				5413.02	6663.79	5843.61
5	Electrical & Automation (discontinued operations)				-	-	-
6	Others				7135.59	6832.53	6967.26
	Total segment assets				91143.22	89404.30	92660.38
	Less : Inter-segment assets				826.49	515.64	869.96
	Add : Unallocable corporate assets				54157.63	60685.75	56162.14
Total assets				144474.36	149574.41	147952.56
Segment liabilities
1	Infrastructure				46554.62	40885.21	48169.76
2	Power				4576.73	4450.15	4672.13
3	Heavy Engineering				1456.85	1668.22	1430.07
4	Defence Engineering				3149.55	4139.48	3766.93
5	Electrical & Automation (discontinued operations)				-	-	-
6	Others				4169.38	3169.75	4377.18
	Total segment liabilities				59907.13	54312.81	62416.07
	Less : Inter-segment liabilities				826.49	515.64	869.96
	Add : Unallocable corporate liabilities				24590.94	37291.93	25992.91
Total liabilities				83671.58	91089.10	87539.02

Notes:

1. The Company has reported segment information as per Ind AS 108 "Operating Segments" read with SEBI circular dated July 5, 2016. The identification of operating segments is consistent with performance assessment and resource allocation by the management.

1. Segment composition: Infrastructure segment comprises engineering and construction of (a) building and factories, (b) transportation infrastructure, (c) heavy civil infrastructure, (d) power transmission & distribution, (e) water & effluent treatment systems and (f) metallurgical & material handling systems. Power segment comprises turnkey solutions for Coal-based and Gas-based thermal power plants including power generation equipment with associated systems and/or balance-of-plant packages. Heavy Engineering segment comprises manufacture and supply of custom designed, engineered critical equipment & systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, Oil & Gas and Thermal & Nuclear Power. Defence Engineering segment comprises (a) design, development, serial production and through life-support of equipment, systems and platforms for Defence and Aerospace sectors and (b) design, construction, and repair/refit of defence vessels. Electrical & Automation segment (upto the date of transfer and disclosed as discontinued operation) comprises manufacture and sale of low and medium voltage switchgear components, custom-built low and medium voltage switchboards, electronic energy meters/protection (relays) systems and control & automation products. Others segment includes realty, smart world & communication projects (including military communications), hydrocarbon, marketing and servicing of construction & mining machinery and parts thereof and manufacture and sale of rubber processing machinery.

1. Unallocable corporate income primarily includes interest income, dividends and profit on sale of investments. Unallocable expenditure mainly includes corporate expenses not allocated to segments. Unallocable corporate assets mainly comprise investments. Corporate liabilities mainly comprise borrowings.

(IV) In respect of most of the segments of the Company, revenue and margins do not accrue uniformly during the year.

(V) Figures for the previous periods have been regrouped/reclassified to conform to the classification of the current periods.

for LARSEN & TOUBRO LIMITED

Mumbai	R. SHANKAR RAMAN
October 27, 2021	Whole-time Director & Chief Financial Officer