L&TAnalyst Presentation-Q1 FY11

8/7/2019 L&TAnalyst Presentation-Q1 FY11

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LARSEN & TOUBRO LIMITEDLARSEN & TOUBRO LIMITED

Analyst PresentationAnalyst Presentation Q1 FY11Q1 FY11

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Presentation Outline

Q1 FY11 Performance Summary

Se mental Anal sis

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Se mental Anal sis

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Performance Highlights

63%Ro b u st g r o w t h i n Or d e r I n f l ow s dr i v en b y Po w er a n d I n f r a st r u ct u r e

50%Heal t hy Ord e r Book Pos i t i on

6%

Revenues

160bps

EBI TDA Marg in

15%Recur r ing PAT

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Order Inflow & Order Book Q1 FY11

Sectoral Break-up

25% 52% 7% 8% 8%

Order Book:

Order Inflow :

Rs. 156.26 Bn

Infrastructure Power Hydrocarbons Process Others

. .

Infrastructure Roads & Bridges Ports & Harbours

Power Generation Equipments

Hydrocarbons Upstream Mid &

Process Minerals &

Metals

Others Shipbuilding Defense &

Airports Railways Buildings &

Factories

Electrification /Transmission &Distribution

Downstream Pipelines Valves

Bulk MaterialHandling

Fertilizer

Aerospace Construction &

Mining Eqpt. Electrical &

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Water

Technology Services

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Order Inflow & Order Book Q1 FY11

1% 2%

Geographical Break-up Customer Profile

10%

34%

89%

93%

21%

45% 40%

Order Inflow Order Book

Domestic

Middle East

Order I nflow Order Book

Private

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Others

Devl. Projects (L&T)


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Performance Summary - Topline

Rs. Billion Q1 FY11 Q1 FY10%

ChangeFY10

Net Sales 78.35 73.63 6% 366.75

--- . . .

Other Operational Income 0.50 0.45 3.60Total Net Revenues 78.85 74.08 6% 370.35

evenue accrua s are a ong p anne nesSales growth driven by non-E&C segmentGrowth influenced by:

Back-ended Order Inflows in FY10 (in initial stages of execution)

Long-cycle jobs with lengthier contracted execution timelinesIncreased level of International Orders yet to translate intorevenues

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Performance Summary Operational Costs

Rs Bn% to Total Net

RevenuesRs Bn

% to Total Net

Revenues

Particulars

Q1 FY11 Q1 FY10

Manf., Cons. & Opex (MCO) 59.44 75.4% 57.32 77.4%

Staff Costs 5.63 7.1% 5.11 6.9%

, . . . . . .

Total Operational Costs 68.78 87.2% 65.78 88.8%

e uce xpenses o evenues , ne ou come o :Lower subcontracting costsHigher material consumption including effect of commodityprice rise

Operational efficienciesIncrease in staff costs in line with manpower increaseSGA expenses in line with sales.

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Performance Summary Profitability

Rs. Billion Q1 FY11 Q1 FY10

ChangeFY10

EBITDA 10.07 8.30 21% 48.16

EBITDA Margins 12.8% 11.2% 13.0%

Interest Expenses 1.42 1.10 30% 5.05

Depreciation (1.14) (0.94) 22% (4.15)Other Income 2.26 2.25 9.10

Provision for Taxes (3.11) (2.73) (16.21)

PAT before Exceptional Items 6.66 5.78 15% 31.85

Extraordinary & Exceptional Items

(Net of tax)

- 10.20 11.91

Profit after Tax 6.66 15.98 -58% 43.76

Uptick in EBITDA margins driven by E&C businessInterest costs in line with borrowin level

Q1 FY10 exceptional on account of gain on UltraTech stake sale

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Performance Summary Balance Sheet

Increase /s. on un- ar-(Decrease)

Net Worth 190.84 183.12 7.72

Loan Funds 79.30 68.01 11.29

(Net)0.95 0.77 0.18

Total Sources 271.09 251.90 19.19

Net Fixed Asset 66.17 63.66 2.51

. . .

Invt./ICDs/Loans &

Advances to S&A Cos80.95 76.79 4.16

Other Investments 5.50 5.49 0.01

Gross D/E: 42%

. . .

Total Applications 271.09 251.90 19.19

apex u ay: s. . nIncrease in Segmental Net Working Capital as % of Sales from 7.6% to 9%Support to S&A Cos includes:

L&T Power Rs. 1.46 Bn

1010

enera nsurance - s. . nL&T IDPL Rs. 1.18 Bn

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Se mental Anal sis

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Segmental Break-up Q1 FY11

Machinery &

Industrial Others

Net Revenues

Engineering

&Construction

83.2%(86.2%)

Electrical &Electronics

ro uc s

6.6%

(5.7%)

.

(1.0%)

.(7.1%)

Machinery &

IndustrialProducts

Others3.1%

EBITDA

Engineering&

Construction79.0%

(80.9%)

Electrical &Electronics

7.2%

10.7%

(10.6%)

.

(7.9%)

12

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Engineering & Construction Segment


ChangeFY10

Total Order Inflows 138.45 83.73 65% 638.99

--- Exports 14.61 4.38 29.31

Total Order Book 1,055.54 699.52 51% 983.86

--- Exports 75.37 96.08 71.28

Total Net Revenues 65.60 63.86 3% 318.42

--- Exports 8.50 13.51 56.26

EBITDA 8.94 7.60 18% 43.39


Net Segment Assets 70.92 68.45 4% 62.91

Ordering Environment turning favourable in domestic marketExport market showing signs of pick-up (mainly GCC)

Longer execution cycles due to increasingly complex long cycle jobsImprovement in EBITDA margins through reduced MCO expensesand favorable job mix

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Electrical & Electronics Segment


ChangeFY10


--- . . .

EBITDA 0.82 0.74 11% 4.23EBITDA Margins 12.0% 14.1% 15.7%

Net Segment Assets 11.09 11.51 -4% 11.32

Favourable Domestic Industrial climate driving higher salesExports affected by project deferments in Middle eastMar ins under ressure due to hi her commodit rices chan e in

product mix and lower price realisationsReduction in Net Segment Assets on account of better workingcapital management

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Machinery & Industrial Products Segment


ChangeFY10


--- . . .

EBITDA 1.20 0.99 21% 4.71EBITDA Margins 23.0% 23.7% 22.1%


Revenue increase anchored by allround industrial recovery barringvalves business. Good Recovery in Construction and Mining businessEx ort Order Inflow ickin u in Valves and rubber rocessin

businesses; translation to revenues in subsequent quartersMargins holding firm despite cost pressuresReduction in Segment assets achieved through lower Net Working

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Others Segment


ChangeFY10


---Ex orts 1.12 0.71 3.26

EBITDA 0.35 0.06 487% 0.52



Mainly represented by Engineering ServicesSales growth led by favourable market conditions in USA andEuropeSmart improvement in margins due to better manpower utilisationand im roved rice realisation

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Outlook

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Performance of Key Subsidiaries

Q1 FY11 Q1 FY10%

ChangeQ1 FY11 Q1 FY10

%

ChangeQ1 FY11 Q1 FY10

PAT MarginsTotal Income PAT

Rs. Billion

L&T Finance 2.87 1.98 45% 0.58 0.24 145% 20.3% 12.0%

L&T Infrastructure Finance 1.48 0.86 71% 0.48 0.22 118% 32.2% 25.3%

L&T InfotechRevenue and PAT growth indicative of IT sector recovery

nanceGrowth driven by allround recoverySmart Increase in NIMBusiness Assets Rs. 80 Bn (PY: Rs. 50 Bn)

L&T Infra FinanceGrowth driven by strong domestic demand for Infrastructure fundingHealthy improvement in NIM

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us ness sse s s. n : s. n


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Developmental Projects

Roads and Br i dges: Portfolio: 15 projects; 7 operational, 8 under implementationDevelopment: 5646 lane km

.

Por ts : Portfolio: 3 projects; 1 operational, 2 under implementation

Ur b a n I n f r a st r u c t u r e : Portfolio: 19 projects; 6 operational, 13 under implementation

Project Outlay: Rs. 53 Bn

Area: 28 Mn sq. ft.Project Outlay: Rs. 89 Bn

P o w e r :

Portfolio: 3 projects under implementationCapacity: 1479 MWProject Outlay: Rs. 110 Bn

19Total Equity Invested (June 2010): Rs. 33.5 Bn

Total Project Cost (June 2010): Rs. 384 Bn

Total Equity Commitment (June 2010): Rs. 74.8 Bn


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Se mental Anal sis

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Outlook

Government

Strong Balance

Capacity &

Ca abilit build u

Susta inab le G r o w t h

Metrics

Business Model

Stable Domestic

Economic & Fiscal-

Growth DriversEnvironment;volatile global

situation

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Annexure 1: Details of Other Income

Rs. Billion Q1 FY11 Q1 FY10

Interest Income 0.65 0.30

. .

Income from Other Investments 0.56 0.64Profit on sale of investments 0.01 0.82

Miscellaneous Income 0.54 0.38

Total - Other Income 2.26 2.25

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L&TAnalyst Presentation-Q1 FY11

Documents

L&TAnalyst Presentation-Q1 FY11