InCred Equities - Larsen & Toubro Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	2,211,129	2,529,344	2,834,192	3,149,058
Operating EBITDA (Rsm)	234,936	263,714	319,696	357,657
Net Profit (Rsm)	129,655	149,646	187,341	212,586
Core EPS (Rs)	92.3	106.5	133.3	151.3
Core EPS Growth	25.5%	15.4%	25.2%	13.5%
FD Core P/E (x)	37.99	32.92	26.29	23.17
DPS (Rs)	21.0	22.0	22.0	22.0
Dividend Yield	0.60%	0.63%	0.63%	0.63%
EV/EBITDA (x)	25.86	23.40	19.27	17.27
P/FCFE (x)	47.34	36.84	36.93	44.43
Net Gearing	96.2%	94.6%	82.4%	73.5%
P/BV (x)	5.70	5.01	4.33	3.73
ROE	14.8%	16.2%	17.7%	17.3%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Net Revenues	2,211,129	2,529,344	2,834,192	3,149,058
Gross Profit	751,623	892,858	991,967	1,095,872
Operating EBITDA	234,936	263,714	319,696	357,657
Depreciation And Amortisation	(36,823)	(38,498)	(42,244)	(44,516)
Operating EBIT	198,113	225,216	277,452	313,141
Financial Income/(Expense)	(35,458)	(34,229)	(35,006)	(35,834)
Pretax Income/(Loss) from Assoc.	(226)	(249)	(299)	(358)
Non-Operating Income/(Expense)	41,580	40,749	39,934	39,135
Profit Before Tax (pre-EI)	204,009	231,486	282,082	316,084
Exceptional Items
Pre-tax Profit	204,009	231,486	282,082	316,084
Taxation	(49,474)	(57,934)	(70,595)	(79,111)
Exceptional Income - post-tax
Profit After Tax	154,535	173,553	211,487	236,973
Minority Interests	(24,880)	(23,907)	(24,146)	(24,387)
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	129,655	149,646	187,341	212,586
Recurring Net Profit	129,655	149,646	187,341	212,586
Fully Diluted Recurring Net Profit	129,655	149,646	187,341	212,586

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	234,936	263,714	319,696	357,657
Cash Flow from Invt. & Assoc.	(30,701)	(31,978)	(37,316)	(41,215)
Change In Working Capital	104,377	(224,477)	(182,364)	(232,074)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense
Other Operating Cashflow	(107,354)	86,397	87,748	87,746
Net Interest (Paid)/Received	(6,122)	(6,519)	(4,928)	(3,301)
Tax Paid	(49,474)	(57,934)	(70,595)	(79,111)
Cashflow From Operations	145,662	29,203	112,242	89,703
Capex	(8,044)	(69,748)	(45,465)	(47,611)
Disposals Of FAs/subsidiaries	(30,409)	(10,000)	(10,000)	(10,000)
Acq. Of Subsidiaries/investments
Other Investing Cashflow	41,580	40,749	39,934	39,135
Cash Flow From Investing	3,128	(38,999)	(15,531)	(18,476)
Debt Raised/(repaid)	(44,736)	143,501	36,658	39,633
Proceeds From Issue Of Shares	(62)
Shares Repurchased	(100,300)
Dividends Paid	(29,506)	(30,911)	(30,911)	(30,911)
Preferred Dividends
Other Financing Cashflow	(56,995)	(54,793)	(55,809)	(56,878)
Cash Flow From Financing	(231,599)	57,796	(50,062)	(48,156)
Total Cash Generated	(82,810)	48,000	46,649	23,070
Free Cashflow To Equity	104,053	133,704	133,369	110,859
Free Cashflow To Firm	113,331	(44,026)	61,705	35,392

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	153,584	201,812	248,317	270,892
Total Debtors	487,710	623,674	698,842	776,480
Inventories	66,202	97,016	93,179	103,531
Total Other Current Assets	775,581	1,039,456	1,242,386	1,509,822
Total Current Assets	1,483,077	1,961,959	2,282,723	2,660,725
Fixed Assets	438,175	469,425	472,646	475,741
Total Investments	1,436,384	1,398,485	1,362,980	1,329,751
Intangible Assets
Total Other Non-Current Assets	33,301	29,971	26,974	24,276
Total Non-current Assets	1,907,860	1,897,880	1,862,600	1,829,768
Short-term Debt
Current Portion of Long-Term Debt
Total Creditors	1,156,104	1,351,293	1,436,508	1,552,960
Other Current Liabilities	44,450	55,438	62,119	69,020
Total Current Liabilities	1,200,554	1,406,731	1,498,628	1,621,980
Total Long-term Debt	1,140,398	1,283,898	1,320,556	1,360,189
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities
Total Non-current Liabilities	1,140,398	1,283,898	1,320,556	1,360,189
Total Provisions
Total Liabilities	2,340,952	2,690,629	2,819,184	2,982,170
Shareholders Equity	863,592	982,327	1,138,757	1,320,432
Minority Interests	161,904	161,904	161,904	161,904
Total Equity	1,025,497	1,144,231	1,300,661	1,482,336

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	20.6%	14.4%	12.1%	11.1%
Operating EBITDA Growth	13.2%	12.2%	21.2%	11.9%
Operating EBITDA Margin	10.6%	10.4%	11.3%	11.4%
Net Cash Per Share (Rs)	(702.33)	(770.14)	(763.13)	(775.27)
BVPS (Rs)	614.63	699.14	810.47	939.78
Gross Interest Cover	5.59	6.58	7.93	8.74
Effective Tax Rate	24.3%	25.0%	25.0%	25.0%
Net Dividend Payout Ratio	22.8%	20.7%	16.5%	14.5%
Accounts Receivables Days	77.17	80.19	85.16	85.50
Inventory Days	16.82	18.20	18.84	17.48
Accounts Payables Days	271.25	279.62	276.17	265.72
ROIC (%)	22.1%	17.7%	18.0%	(8.2%)
ROCE (%)	9.0%	9.8%	11.0%	11.5%
Return On Average Assets	5.3%	5.4%	5.9%	5.2%

(91) 22 4161 1542 arafat.saiyed@incredresearch.com

(91) 02241611548 anirvan.divakera@incredresearch.com

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Market Data

Source: Bloomberg