Presentation Outline. Q1 FY11 Performance Summary

Transcription

1 LARSEN & TOUBRO LIMITED Analyst Presentation Q1 FY11

2 Presentation Outline Q1 FY11 Performance Summary Segmental e Analysis s Performance of Key Subsidiaries Outlook 2

3 Presentation Outline Q1 FY11 Performance Summary Segmental e Analysis s Performance of Key Subsidiaries Outlook 3

4 Performance Highlights 63% Robust growth in Order Inflows driven by Power and Infrastructure 50% Healthy Order Book Position 6% Revenues 160 bps EBITDA Margin 15% Recurring PAT 4

5 Order Inflow & Order Book Q1 FY11 Sectoral Break-up Order Inflow: Rs Bn 25% 52% 7% 8% 8% Order Book: Rs Bn 32% 33% 14% 15% 6% Infrastructure Power Hydrocarbons Process Others Infrastructure Roads & Bridges Ports & Harbours Airports Railways Buildings & Factories Urban Infra Water Power Generation Equipments Electrification / Transmission & Distribution Hydrocarbons Upstream Mid & Downstream Pipelines Valves Process Minerals & Metals Bulk Material Handling Fertilizer Others Shipbuilding Defense & Aerospace Construction & Mining Eqpt. Electrical & Electronic Products Technology Services 5

6 Order Inflow & Order Book Q1 FY11 Geographical Break-up 1% 2% Customer Profile 10% 5% 34% 13% 21% 47% 89% 93% 45% 40% Order Inflow Order Book Domestic Middle East Others Order Inflow Order Book Private Public (Incl. PSUs) Devl. Projects (L&T) 6

7 Performance Summary - Topline % Rs. Billion Q1 FY11 Q1 FY10 FY10 Change Net Sales % Exports Other Operational Income Total Net Revenues % Revenue en e accruals als are 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) Long-cycle jobs with lengthier contracted execution timelines Increased level of International Orders yet to translate into revenues 7 7

8 Performance Summary Operational Costs Q1 FY11 Q1 FY10 Particulars Rs Bn % to Total Net Revenues Rs Bn % to Total Net Revenues Manf., Cons. & Opex (MCO) % % Staff Costs % % Sales, adm. & other Exp % 4.7% % 4.5% Total Operational Costs % % Reduced MCO Expenses (% of Revenues), en es) net outcome of: Lower subcontracting costs Higher material consumption including effect of commodity price rise Operational efficiencies Increase in staff costs in line with manpower increase SGA expenses in line with sales. 8 8

9 Performance Summary Profitability % Rs. Billion Q1 FY11 Q1 FY10 FY10 Change EBITDA % EBITDA Margins 12.8% 11.2% 13.0% Interest Expenses (1.42) (1.10) 10) 30% (5.05) Depreciation (1.14) (0.94) 22% (4.15) Other Income Provision for Taxes (3.11) (2.73) (16.21) PAT before Exceptional Items % Extraordinary & Exceptional Items (Net of tax) Profit after Tax % Uptick in EBITDA margins driven by E&C business Interest costs in line with borrowing o level Q1 FY10 exceptional on account of gain on UltraTech stake sale 9 9

10 Performance Summary Balance Sheet Rs. Billion Jun-10 Mar-10 Increase / (Decrease) Net Worth Loan Funds Deferred Tax Liabilities (Net) Total Sources Net Fixed Asset Current Investments Invt./ICDs/Loans & Advances to S&A Cos Other Investments Net Current Assets Total Applications Gross D/E: 42% Capex Outlay: Rs Bn Increase in Segmental Net Working Capital as % of Sales from 7.6% to 9% Support to S&A Cos includes: L&T Power Rs Bn L&T General Insurance - Rs Bn L&T IDPL Rs Bn 10 10

11 Presentation Outline Q1 FY11 Performance Summary Segmental e Analysis s Performance of Key Subsidiaries Outlook 11

12 Segmental Break-up Q1 FY11 Electrical & Electronics 86% 8.6% (7.1%) Machinery & Industrial Products 6.6% (5.7%) Net Revenues Others 16% 1.6% (1.0%) Engineering & Construction 83.2% (86.2%) Electrical & Electronics 7.2% (7.9%) Machinery & Industrial Products 10.7% (10.6%) EBITDA Others 3.1% (0.6%) Engineering & Construction 79.0% (80.9%) Figures in the bracket indicate Previous Year s Composition 12 12

13 Engineering & Construction Segment Rs. Billion Q1 FY11 Q1 FY10 % Change FY10 Total Order Inflows % Exports Total Order Book 1, % Exports Total Net Revenues % Exports EBITDA % EBITDA Margins 13.6% 11.9% 13.6% Net Segment Assets % 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 13

14 Electrical & Electronics Segment Rs. Billion Q1 FY11 Q1 FY10 % Change FY10 Total Net Revenues % Exports EBITDA % 4.23 EBITDA Margins 12.0% 14.1% 15.7% Net Segment Assets % 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 product mix and lower price realisations Reduction in Net Segment Assets on account of better working capital management 14

15 Machinery & Industrial Products Segment Rs. Billion Q1 FY11 Q1 FY10 % Change FY10 Total Net Revenues % Exports EBITDA % 4.71 EBITDA Margins 23.0% 23.7% 22.1% Net Segment Assets % 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 businesses; translation to revenues in subsequent quarters Margins holding firm despite cost pressures Reduction in Segment assets achieved through lower Net Working Capital levels 15

16 Others Segment Rs. Billion Q1 FY11 Q1 FY10 % Change FY10 Total Net Revenues % Exports EBITDA % 0.52 EBITDA Margins 28.9% 7.8% 14.2% Net Segment Assets % 2.03 Mainly represented by Engineering Services Sales growth led by favourable market conditions in USA and Europe Smart improvement in margins due to better manpower utilisation and improved price realisation 16

17 Presentation Outline Q1 FY11 Performance Summary Segmental Analysis Performance of Key Subsidiaries Outlook 17

18 Performance of Key Subsidiaries Rs. Billion Q1 FY11 Total Income Q1 FY10 % Change Q1 FY11 Q1 FY10 % Change PAT Margins Q1 FY11 Q1 FY10 L&T Infotech % % 14.0% 12.9% L&T Finance % % 20.3% 12.0% L&T Infrastructure Finance % % 32.2% 25.3% PAT L&T Infotech Revenue and PAT growth indicative of IT sector recovery L&T Finance Growth driven by allround recovery Smart Increase in NIM Business Assets Rs. 80 Bn (PY: Rs. 50 Bn) L&T Infra Finance Growth driven by strong domestic demand for Infrastructure funding Healthy improvement in NIM Business Assets Rs. 45 Bn (PY: Rs. 30 Bn) 18

19 Developmental Projects Ports: Roads and Bridges: Portfolio: 15 projects; 7 operational, 8 under implementation Development: 5646 lane km Project Outlay: Rs. 132 Bn Portfolio: 3 projects; 1 operational, 2 under implementation Capacity: 45 Mn TPA Project Outlay: Rs. 53 Bn Urban Infrastructure: Portfolio: 19 projects; 6operational, 13 under implementation Area: 28 Mn sq. ft. Project Outlay: Rs. 89 Bn Power: Portfolio: 3 projects under implementation Capacity: 1479 MW Project Outlay: Rs. 110 Bn Total Project Cost (June 2010): Rs. 384 Bn Total Equity Commitment (June 2010): Rs Bn Total Equity Invested (June 2010): Rs Bn 19

20 Presentation Outline Q1 FY11 Performance Summary Segmental e Analysis s Performance of Key Subsidiaries Outlook 20

21 Outlook Government Policy Strong Balance Sheet Robust Fin. Metrics Sustainable Growth Capacity & Capability build up Stable Domestic Economic & Fiscal Environment; volatile global situation Business Model - Strategy & Growth Drivers 21

22 Thank You 22 22

23 Annexure 1: Details of Other Income Rs. Billion Q1 FY11 Q1 FY10 Interest Income Dividend from S&A Companies Income from Other Investments Profit on sale of investments Miscellaneous Income Total - Other Income