Larsen & Toubro achieved Consolidated Revenues of ₹ 42,763 crore

L&T Financial Resultsfor the period ended September 30, 2022

All-round performance Order Inflow - 23% for the quarter& 36% for half year Revenue - 23% for the quarter & half year PAT - 23% for the quarter& 31% for half year Mumbai, October31, 2022 Larsen & Toubro achieved Consolidated Revenues of ₹ 42,763 crore for the quarter ended September 30, 2022 recording a y-o-y growth of 23% with execution tailwinds in the Infrastructure Projects segment and sustained growth momentum in the IT&TS portfolio. International revenues during the quarter at ₹ 15,473 crore constituted 36% of the total revenue. For the half-year ended September 30, 2022, the Consolidated Revenues at ₹ 78,616 crore recorded a y-o-y growth of 23% with international revenues during the half-year at ₹ 28,708 croreconstituting 37% of the total. The Company for the quarterended September 30, 2022, posted a Consolidated Profit After Tax (PAT) of ₹ 2,229 crore, registering a robust growthof 23% over the corresponding quarter of the previous year. All the major segments reported higher profits, led by the IT&TS and Financial Servicesbusinesses. For the half-yearended September 30, 2022, Consolidated Profit After Tax at ₹ 3,931 crore,registered a growthof 31% y-o-y basis. The Company recorded orders worth ₹ 51,914 crore at the group level during the quarter ended September 30, 2022, registering a growth of 23% over the corresponding quarter of the previous year. During the quarter, orders were received across multiple segments like Public Spaces, Nuclear Power, Irrigation, Ferrous Metal, Health, Renewables and Refinerysectors. International ordersat ₹ 17,341 crore during the quartercomprised 33% of the total order inflow.

On a cumulative basis, the order inflow for the half-year ended September 30, 2022 stood at ₹ 93,720 crore,registering a growthof 36% over the corresponding period of the previous year. International orders at ₹ 35,184 croreduring the half-year constituted 38% of the total. The consolidated order book of the group was at ₹ 372,381crore as on September 30, 2022, with international orders having a share of 28%. Infrastructure ProjectsSegment The Infrastructure Projects segment secured order inflows of ₹ 25,058 crore, during the quarter ended September 30, 2022, registering a substantial growth of more than 100%, as compared to the corresponding quarter of the previous year.International orders at ₹ 6,700 crore constituted 27% of the total order inflow of the segmentduring the quarter. The segment order book stood at ₹ 268,752 croreas on September 30, 2022, with the share of international orders at 24%. The segment recordedcustomer revenues of ₹ 19,370 crore for the quarterended September 30, 2022, registering a y-o-y growth of 39%, aided by accelerated execution of projects across various sites. International revenues constituted 19% of the total customer revenuesof the segment during the quarter. The EBITDA margin of the segment during the quarter ended September 30, 2022 was at 6.6% vis-à-vis 8.3% recorded in the corresponding quarter of the previous year. Margin for the quarter was impacteddue to cost pressures witnessed in few projects. Energy Projects Segment The Energy Projects segment secured orders valued at ₹ 8,441 crore during the quarter ended September 30, 2022, registering a decline of 42% y-o-y since previous year had the benefit of receipt of a mega international order in the Hydrocarbon business. International order inflow constituted 3% of the total order inflow of the segment during the quarter. The segment order book was at ₹ 68,971 crore as on September 30, 2022, with the international order book constituting 54%. The segment posted customer revenuesof ₹ 5,586 crore during the quarterended September 30, 2022, recording a decline of 7% y-o-y, largely attributed to slower than expected progress across few projects in the Hydrocarbon business. International revenues had a share of 34% of the total customer revenues for the quarter. The EBITDA margin of the segment at 8.5% for the quarter ended September 30, 2022 improved comparedto 6.6% over corresponding quarterof the previous year, on account of execution cost savings in certain Hydrocarbon projects.

Hi-Tech Manufacturing Segment The segment securedorders valued at ₹ 1,768 crore during the quarterended September 30, 2022 registering substantial growth of 62% over corresponding quarterof the previous year with healthy flow of orders in the Heavy Engineering business. Export orders constituted 48% ofthe total order inflow ofthe segment during the quarter. The order book of the segment was at ₹ 19,659 crore as on September 30, 2022, with the share of export orders at 14%. The segment posted customer revenuesof ₹ 1,456 crore for the quarterended September 30, 2022, a marginal drop over the corresponding quarter of the previous year. Export sales comprised 22% of the total customer revenuesfor the quarter. The EBITDA margin of the segment at 18.5% for the quarter ended September 30, 2022 registered growth,compared to 14.5% reported in the corresponding quarter of the previous year, with favourable job mix in current quarter, coupled with previous year quarter being impacted with cost pressures in few of the jobs. IT & Technology Services (IT&TS) Segment The segment recordedcustomer revenues of ₹ 10,151 crore for the quarterended September 30, 2022, registering a y-o-y growthof 29%, reflecting continued growthimpetus in the IT&TS sector. International billing contributed 93% of the total customer revenues of the segment for the quarterended September 30, 2022. The aggregate revenueof the three listed subsidiaries in this segment at USD 1,270 Mn registered a sequential growthof 4%. The EBITDA marginfor the segmentwas at 21.9% for the quarter ended September 30, 2022 as compared to 23.2% in the corresponding quarter of the previous year. Elevated employeecost, driven by demand for talent and high attrition rates, impactedthe margin. Financial Services Segment The segment reflects the performance of L&T Finance Holdings, a listed subsidiary. The segment recorded income from operations at ₹ 3,152 crore during the quarter ended September30, 2022, registering a y-o-y growth of 6%, mainly attributed to higher disbursement in retail business, in line with its strategyof retailisation of the loan book. The total Loan Book at ₹ 90,098 crore grew by 4% as compared with September 2021 at ₹ 86,936 crore,with growth achievedon increased disbursements in the retailportfolio and targetedreduction in defocused businesses. The segment EBIT for the quarter ended September 30, 2022 increased to ₹ 613 crore as compared to ₹ 322 crore in the corresponding quarter of the previous year due to lower provisionof credit cost arising from improved asset quality and rising NIM.

Development Projects Segment The segment recorded customer revenues of ₹ 1,344 crore during the quarter ended September30, 2022 registering growthof 15% over the corresponding quarter of the previous year, driven by a higher PLF in the Nabha Powerplant and increasein ridership in Hyderabad Metro. The segment EBIT for the quarter ended September 30, 2022 registered a loss of ₹ 12 crore as compared to loss of ₹ 35 crore during the corresponding quarter of the previous year, primarily due to improved metro ridership. “Others” Segment “Others” segment comprises (a) Realty, (b) Construction & Mining Machinery, (c) Rubber Processing Machinery, (d) Industrial Valves and (e) Smart World and Communication businesses. Customer revenues duringthe quarter ended September 30, 2022 at ₹ 1,704crore registered a growth of 24% y-o-y with increase in sales of Rubber Processing Machinery and improved execution of jobs in the Smart Worldand Communication business.Export sales constituting 7% of the total customer revenues of the segment during the quarter, majorly pertains to export of Industrial Valves and Rubber Processing Machinery. During the quarter ended September 30, 2022, the segment EBITDA margin at 15.6%, has declined comparedto 21.5% duringthe corresponding quarterof the previous year on lower handover of flats in Realty business and higher input cost in the Construction Equipment business. Note: Segment-wisesummary of performance for the quarterand half year ended September30, 2022 is attached in Annexure 1 Outlook The Indian economyis doing relatively well and is expected to continue its growth momentum, albeit at a slower pace than earlier anticipated. High inflation, coupled with threat of an adverse BoP amidst the increasing uncertain global economic environment are possible headwindsto the country’s growth trajectory. Large value privatesector investments that was set for a major revival may get delayed due to the persisting geo- politicaland global economic turbulence. On a positive note, the Government with success of its production linked incentives (PLI) scheme, is likely to expand it to more sectors. The Government is expected to intensify its efforts on structural reformsin critical areas such as labour, logistics, health and education. Robust tax collections this year will enable the government to sustain budgetedinvestment

programmes. Another silver lining is the visibility of a continuing domestic consumption demand, that augurs well for new investments.

On the global front, the economic outlook is cloudedby key downside risks, viz.,the conflict in eastern Europe impacting food & energy supply chains,gradual polarization and possibility of stagflation resultingfrom supply led inflation in an uncertain demand environment.

Amidst this visible global turmoil, the GCC region, a major geography for the Company’s Projects business continues to invest in the oil & gas sector to accelerate production capacity. Besides,some of the GCC countries with long term strategy to reduce dependence on oil economy, are focusing on building non-oil sector, viz. metals, renewable energy, infrastructure development etc.

The Company is confident of the Indian Governments’ variousreform and economicmeasures to provide the right investment and growth climate, aided by the country demonstrating resilience to the global challenges. The Company’s Projects & Hi-Tech Manufacturing businesses are rightly positioned to leverage the India and Middle East capex opportunity and with tech enabled skill sets and offerings, the IT&TS businesswill continue to pursue growth in the global services domain. The Company’s strategy of focusing onProjects, Hi-Tech Manufacturing and IT&TS services in a rapidly changing global business environment is expected to provide improvedreturns to all its stakeholders.