LARSEN & TOUBRO LI MI TED LARSEN & TOUBRO LI MI TED Analyst - PowerPoint PPT Presentation

LARSEN & TOUBRO LI MI TED LARSEN & TOUBRO LI MI TED Analyst Presentation Analyst Presentation – – Q1 FY1 1 Q1 FY1 1 27 July, 2010

Presentation Outline Q1 FY11 Performance Summary Segmental Analysis Seg e a a ys s Performance of Key Subsidiaries Performance of Key Subsidiaries O Outlook l k 27 July, 2010 2

Presentation Outline Q1 FY11 Performance Summary Segmental Analysis Seg e a a ys s Performance of Key Subsidiaries Performance of Key Subsidiaries O Outlook l k 27 July, 2010 3

Performance Highlights 6 3 % Robust grow th in Order I nflow s driven by Pow er and I nfrastructure 5 0 % Healthy Order Book Position 6 % Revenues 1 6 0 EBI TDA Margin bps 1 5 % Recurring PAT 27 July, 2010 4

Order Inflow & Order Book – Q1 FY11 Sectoral Break-up Order I nflow : 2 5 % 5 2 % 7 % 8 % 8 % Rs. 1 5 6 .2 6 Bn Order Book: 3 2 % 3 2 % 3 3 % 3 3 % 1 4 % 1 4 % 1 5 % 1 5 % 6 % 6 % Rs 1 0 7 8 1 6 Bn Rs. 1 0 7 8 .1 6 Bn I nfrastructure Pow er Hydrocarbons Process Others I nfrastructure Pow er Hydrocarbons Process Others � Roads & Bridges � Generation � Upstream � Minerals & � Shipbuilding � Ports & Harbours � Equipments � Mid & Metals � Defense & � Airports � Electrification / Downstream � Bulk Material Aerospace � Railways Transmission & � Pipelines Handling � Construction & � Buildings & Distribution � Valves � Fertilizer Mining Eqpt. � Electrical & Factories � Urban Infra � Urban Infra Electronic Products Electronic Products � Water � Technology Services 27 July, 2010 5

Order Inflow & Order Book – Q1 FY11 Geographical Break-up Custom er Profile 1 % 2 % 5 % 5 % 1 3 % 1 3 % 1 0 % 3 4 % 4 7 % 4 7 % 2 1 % 9 3 % 8 9 % 4 5 % 4 0 % Order I nflow Order Book Order I nflow Order Book Dom estic Private Middle East Public ( I ncl. PSUs) Public ( I ncl. PSUs) Others Devl. Projects ( L&T) 27 July, 2010 6

Performance Summary - Topline % Rs. Billion Q1 FY1 1 Q1 FY1 0 FY1 0 Change Net Sales 78.35 73.63 6% 366.75 --- Exports Exports 10 47 15 32 10.47 15.32 64 46 64.46 Other Operational Income 0.50 0.45 3.60 Total Net Revenues 7 8 .8 5 7 4 .0 8 6 % 3 7 0 .3 5 Re en e acc Revenue accruals are along planned lines als a e along planned lines Sales growth driven by non-E&C segment Growth influenced by: Back-ended Order Inflows in FY10 (in initial stages of execution) ( g ) Long-cycle jobs with lengthier contracted execution timelines Increased level of International Orders yet to translate into revenues 27 July, 2010 7 7

Performance Summary – Operational Costs Q1 FY1 1 Q1 FY1 0 Particulars % to Total Net % to Total Net Rs Bn Rs Bn Revenues Revenues Manf., Cons. & Opex (MCO) 59.44 75.4% 57.32 77.4% Staff Costs 5.63 7.1% 5.11 6.9% Sales adm & other Exp Sales, adm. & other Exp. 3 71 3.71 4 7% 3 35 4.7% 3.35 4.5% 4 5% Total Operational Costs 6 8 .7 8 8 7 .2 % 6 5 .7 8 8 8 .8 % Red ced MCO E penses (% of Re en es) net o tcome of Reduced MCO Expenses (% of Revenues), net outcome of: Lower subcontracting costs Higher material consumption including effect of commodity price rise p Operational efficiencies Increase in staff costs in line with manpower increase SGA expenses in line with sales. 27 July, 2010 8 8

Performance Summary – Profitability % % Rs. Billion Q1 FY1 1 Q1 FY1 0 FY1 0 Change EBITDA 10.07 8.30 21% 48.16 EBI TDA Margins 1 2 .8 % 1 1 .2 % 13.0% Interest Expenses I E (1 42) (1 10) (1.42) (1.10) 30% 30% (5 05) (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 I tem s 6 .6 6 5 .7 8 1 5 % 31.85 Extraordinary & Exceptional Items - 10.20 11.91 (Net of tax) Profit after Tax 6 .6 6 1 5 .9 8 -5 8 % 43.76 Uptick in EBITDA margins driven by E&C business Interest costs in line with borrowing level o bo o g Q1 FY10 exceptional on account of gain on UltraTech stake sale 27 July, 2010 9 9

Performance Summary – Balance Sheet I ncrease / / Rs. Billion Rs Billion Jun-10 Jun 10 Mar 10 Mar-10 ( Decrease) Net Worth 190.84 183.12 7.72 Loan Funds 79.30 68.01 11.29 Deferred Tax Liabilities Deferred Tax Liabilities 0.95 0.77 0.18 (Net) Total Sources 271.09 251.90 19.19 Net Fixed Asset 66.17 63.66 2.51 Current Investments Current Investments 87 66 87.66 79.65 79 65 8 01 8.01 Invt./ ICDs/ Loans & 80.95 76.79 4.16 Advances to S&A Cos Other Investments 5.50 5.49 0.01 Net Current Assets Net Current Assets 30 81 30.81 26 31 26.31 4 50 4.50 Total Applications 271.09 251.90 19.19 Gross D/ E: 42% C Capex Outlay: Rs. 3.63 Bn O tl R 3 63 B Increase 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 L&T Gene al Ins L&T General Insurance - Rs. 1.46 Bn ance Rs 1 46 Bn L&T IDPL – Rs. 1.18 Bn 27 July, 2010 10 10

Presentation Outline Q1 FY11 Performance Summary Segm ental Analysis Seg e a a ys s Performance of Key Subsidiaries Performance of Key Subsidiaries O Outlook l k 27 July, 2010 11

Segmental Break-up – Q1 FY11 Net Revenues Machinery & Others Industrial 1 6 % 1 .6 % P Products d t Engineering (1.0% ) 6 .6 % & (5.7% ) Construction Electrical & 8 3 .2 % Electronics (86.2% ) 8 6 % 8 .6 % (7.1% ) EBI TDA Machinery & Others Industrial 3 .1 % Products (0 6% ) (0.6% ) Engineering 1 0 .7 % & (10.6% ) Construction Electrical & 7 9 .0 % Electronics (80.9% ) 7 .2 % (7.9% ) Figures in the bracket indicate Previous Year’s Composition Figures in the bracket indicate Previous Year s Composition 27 July, 2010 12 12

‘Engineering & Construction’ Segment % Rs. Billion Q1 FY1 1 Q1 FY1 0 FY10 Change 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 EBITDA Margins 13.6% 11.9% 13.6% Net Segment Assets 70.92 68.45 4% 62.91 Ordering Environment turning favourable in domestic market Export market showing signs of pick-up (mainly GCC) Longer execution cycles due to increasingly complex long cycle jobs Improvement in EBITDA margins through reduced MCO expenses and favorable job mix Increase in Net Segment assets due to Working Capital Increase in Net Segment assets due to Working Capital 27 July, 2010 13

‘Electrical & Electronics’ Segment % Rs. Billion Q1 FY1 1 Q1 FY1 0 FY10 Change Total Net Revenues 6.80 5.25 30% 26.94 ---Exports Exports 0 53 0 52 0.53 0.52 2 74 2.74 EBITDA 0.82 0.74 11% 4.23 EBITDA Margins 12.0% 14.1% 15.7% Net Segment Assets 11.09 11.51 -4% 11.32 Favourable Domestic Industrial climate driving higher sales Exports affected by project deferments in Middle east Margins under pressure due to higher commodity prices, change in g p g y p , g product mix and lower price realisations Reduction in Net Segment Assets on account of better working capital management 27 July, 2010 14

‘Machinery & Industrial Products’ Segment % Rs. Billion Q1 FY1 1 Q1 FY1 0 FY10 Change Total Net Revenues 5.23 4.20 25% 21.35 ---Exports Exports 0 31 0 58 0.31 0.58 2 06 2.06 EBITDA 1.20 0.99 21% 4.71 EBITDA Margins 23.0% 23.7% 22.1% Net Segment Assets 1.76 2.94 -40% 2.24 Revenue increase anchored by allround industrial recovery barring valves business. Good Recovery in Construction and Mining business Export Order Inflow picking up in Valves and rubber processing p p g p p g businesses; translation to revenues in subsequent quarters Margins holding firm despite cost pressures Reduction in Segment assets achieved through lower Net Working Capital levels Capital levels 27 July, 2010 15

‘Others’ Segment % Rs. Billion Q1 FY1 1 Q1 FY1 0 FY10 Change Total Net Revenues 1.22 0.77 58% 3.65 ---Exports Exports 1.12 0.71 1.12 0.71 3.26 3.26 EBITDA 0.35 0.06 487% 0.52 EBITDA Margins 28.9% 7.8% 14.2% Net Segment Assets 2.03 2.15 -6% 2.03 Mainly represented by Engineering Services Sales growth led by favourable market conditions in USA and S l h l d b f bl k d S d Europe Smart improvement in margins due to better manpower utilisation and improved price realisation and improved price realisation 27 July, 2010 16

Presentation Outline Q1 FY11 Performance Summary Q1 FY11 Performance Summary Segmental Analysis Segmental Analysis Perform ance of Key Subsidiaries Perform ance of Key Subsidiaries Outlook Outlook 27 July, 2010 17