InCred Equities - Larsen & Toubro Ltd

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue (Rsm)	2,211,129	2,554,572	2,834,014	3,148,515
Operating EBITDA (Rsm)	234,936	251,194	319,645	357,735
Net Profit (Rsm)	129,655	140,256	187,302	212,644
Core EPS (Rs)	92.3	99.8	133.3	151.3
Core EPS Growth	25.5%	8.2%	33.5%	13.5%
FD Core P/E (x)	37.06	34.26	25.65	22.60
DPS (Rs)	21.0	22.0	22.0	22.0
Dividend Yield	0.61%	0.64%	0.64%	0.64%
EV/EBITDA (x)	25.34	24.13	18.92	16.96
P/FCFE (x)	46.18	39.78	35.10	43.28
Net Gearing	96.2%	96.5%	83.8%	74.6%
P/BV (x)	5.56	4.94	4.25	3.67
ROE	14.8%	15.3%	17.8%	17.4%
% 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	2,554,572	2,834,014	3,148,515
Gross Profit	751,623	901,764	991,905	1,095,683
Operating EBITDA	234,936	251,194	319,645	357,735
Depreciation And Amortisation	(36,823)	(38,498)	(42,244)	(44,516)
Operating EBIT	198,113	212,696	277,401	313,218
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	218,967	282,031	316,161
Exceptional Items
Pre-tax Profit	204,009	218,967	282,031	316,161
Taxation	(49,474)	(54,804)	(70,582)	(79,130)
Exceptional Income - post-tax
Profit After Tax	154,535	164,163	211,448	237,031
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	140,256	187,302	212,644
Recurring Net Profit	129,655	140,256	187,302	212,644
Fully Diluted Recurring Net Profit	129,655	140,256	187,302	212,644

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
EBITDA	234,936	251,194	319,645	357,735
Cash Flow from Invt. & Assoc.	(30,701)	(31,978)	(37,316)	(41,215)
Change In Working Capital	104,377	(228,002)	(178,805)	(231,975)
(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)	(54,804)	(70,582)	(79,130)
Cashflow From Operations	145,662	16,288	115,763	89,859
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)	35,085	50,170	23,226
Free Cashflow To Equity	104,053	120,789	136,889	111,016
Free Cashflow To Firm	113,331	(56,941)	65,226	35,549

(Rs mn)	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Total Cash And Equivalents	153,584	188,898	238,922	261,654
Total Debtors	487,710	629,894	698,798	776,346
Inventories	66,202	97,984	93,173	103,513
Total Other Current Assets	775,581	1,049,824	1,242,307	1,509,562
Total Current Assets	1,483,077	1,966,599	2,273,201	2,651,075
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	1,364,771	1,436,418	1,552,693
Other Current Liabilities	44,450	55,991	62,115	69,009
Total Current Liabilities	1,200,554	1,420,762	1,498,533	1,621,701
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	2,704,660	2,819,090	2,981,891
Shareholders Equity	863,592	972,937	1,129,328	1,311,061
Minority Interests	161,904	161,904	161,904	161,904
Total Equity	1,025,497	1,134,841	1,291,233	1,472,965

	Mar-24A	Mar-25F	Mar-26F	Mar-27F
Revenue Growth	20.6%	15.5%	10.9%	11.1%
Operating EBITDA Growth	13.2%	6.9%	27.3%	11.9%
Operating EBITDA Margin	10.6%	9.8%	11.3%	11.4%
Net Cash Per Share (Rs)	(702.33)	(779.33)	(769.82)	(781.85)
BVPS (Rs)	614.63	692.46	803.76	933.11
Gross Interest Cover	5.59	6.21	7.92	8.74
Effective Tax Rate	24.3%	25.0%	25.0%	25.0%
Net Dividend Payout Ratio	22.8%	22.0%	16.5%	14.5%
Accounts Receivables Days	77.17	79.84	85.56	85.51
Inventory Days	16.82	18.13	18.94	17.49
Accounts Payables Days	271.25	278.35	277.52	265.74
ROIC (%)	22.1%	16.6%	18.0%	(8.2%)
ROCE (%)	9.0%	9.3%	11.0%	11.5%
Return On Average Assets	5.3%	5.2%	5.9%	5.2%

(91) 02241611548 anirvan.divakera@incredresearch.com

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Market Data

Source: Bloomberg