Analyst Presentation Q1 09. July 28,

Transcription

1 Analyst Presentation Q1 09 July 28,

2 Disclaimer This presentation contains certain forward looking statements concerning L&T s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition ( both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. July 28,

3 Presentation Outline Q1 09 Performance Summary Segment Analysis Performance of Key Subsidiaries Outlook July 28,

4 Q1 09 Performance Summary July 28,

5 Performance Highlights: Q1 09 Net Revenues Order Book Order Inflows Growth of 24% Growth of 53% Growth of 40% Recurring PBDIT Growth of 72% Manpower Net Addition of over 2300 July 28,

6 Sectorwise Order Inflows & Order Book 20% 12% 33% 26% 9% Order Inflows (Rs. 122 Bn) Order Book (Rs. 582 Bn) 15% 22% 19% 34% 10% Process Oil & Gas Power Infrastructure Others Refineries Petrochemicals Minerals & Metals Bulk Material Handling Platforms Pipelines Valves Generation Renovation & Modernisation Equipment Electrification / Transmission & Distribution Roads, Bridges Ports, Airports Railways Industrial & Commercial Buildings Urban Infrastructure Ship Building Defense / Aerospace Electrical & Electronics Construction & Mining Eqpt. Others July 28,

7 Performance Summary FY 08 Rs. Billion Q1 09 Q1 08 % Change Order Inflows % Order Book % Net Sales % 5.88 Other Income Total Net Revenues % Growth in Order Inflows led by Power & Process sectors Robust growth in Net Sales contributed by E&C segment Order Inflows Order Book Net Sales Export proportion 13.1% 16.4% 19.4% July 28,

8 Performance Summary FY 08 Rs. Billion Q1 09 Q1 08 % Change PBDIT (w/o gain on divestitures) % (0.38) Interest (Net) (0.28) 0.02 (2.12) Depreciation (0.66) (0.42) (9.68) Tax - (Incl Deferred & FBT) (2.53) (2.00) PAT (w/o gain on divestitures) Gain on divestitures net of tax Profit After Tax % PAT (w/o Exchange Gain) % PBDIT Margins (w/o Exchange Gain): 11.7% (Q1 08: 10.6%) Interest Expenses: Rs Bn (Q1 08: Rs Bn) Capex Outlay: Rs Bn July 28,

9 Segment Analysis July 28,

10 Segmental Break-up 79% 69% Q1 09 7% 9% 9% 18% 5% 4% Engineering & Construction 74% 63% Electrical & Machinery & Electronics Industrial Products Net Revenues Others EBITDA Q % 16% 9% 18% 6% 3% Engineering & Construction Electrical & Electronics Machinery & Industrial Products Others July 28,

11 Engineering & Construction Segment FY 08 Rs. Billion Q1 09 Q1 08 % Change Total Order Inflows % Exports Total Order Book % Exports Total Net Revenues % Exports EBITDA % 12.8% EBITDA Margins 10.5% 9.6% Net Segment Assets Healthy growth in Order Inflows despite challenging environment Bagged first order in the supercritical power equipment manufacturing space - Steam Turbine Generator package of 2 X 800 MW - from APPDCL Strong growth in Revenues across all business units Improvement in profitability contributed by selection of jobs with better margins, better contract management, effective cost management and adherence to quality & delivery schedules July 28,

12 Electrical & Electronics Segment FY 08 Rs. Billion Q1 09 Q1 08 % Change Total Net Revenues % Exports EBITDA % 17.0% EBITDA Margins 13.7% 16.6% Net Segment Assets Growth in revenues affected by Slowdown in industrial growth Lower sales in Petrol Dispensing Pumps & Metering business Lower volumes and spurt in inflation adversely impacted the margins July 28,

13 Machinery & Industrial Products Segment FY 08 Rs. Billion Q1 09 Q1 08 % Change Total Net Revenues % Exports EBITDA % 19.0% EBITDA Margins 24.6% 22.1% 4.39 Net Segment Assets Revenue growth across all businesses Better price realisation and rupee depreciation led to improved profits July 28,

14 Others Segment FY 08 Rs. Billion Q1 09 Q1 08 % Change Total Net Revenues % Exports EBITDA % 9.6% EBITDA Margins 8.3% 5.8% 3.36 Net Segment Assets Divestment of RMC business progressing towards completion Favourable movement in the exchange rates contributing to improvement in margins of Technology Services business July 28,

15 Performance of Key Subsidiaries July 28,

16 Performance of Key Subsidiaries Rs. Billion Total Revenues PAT Q1 09 Q1 08 Q1 09 Q1 08 L&T Infotech Limited L&T Finance Limited L&T Infrastructure Finance Limited Strong growth in Revenues L&T Infotech: Rupee depreciation led to improvement in margins L&T Finance: Total Assets grew by 64% on YoY basis to Rs Bn Margins impacted by rising interest rates & investment in network expansion L&T Infrastructure Finance: Total Assets (June, 08): Rs Bn July 28,

17 Outlook July 28,

18 Outlook Challenging global & local conditions: High crude prices, inflation, credit squeeze, high interest rates, lower forecast of GDP However, Company is well positioned to mitigate the impact, due to its: Leadership position across diverse core growth sectors Strong revenue visibility Increasing global footprints Sound risk management framework backed up by thrust on operational excellence measures Capacity build-up underway for capitalising on increasing opportunities expected in the medium term Company maintains its guidance for the current year July 28,

19 July 28,

20 Annexure 1 - Major Orders Booked During Q1 09 Description Rs Bn ---- Domestic Supercritical Steam Turbine Generators & Auxiliaries for 2X800 MW plant of APPDCL Cast Steel Wheel manufacturing plant in Bihar for Indian Railways Blast Furnace for Tata Steel at Kalinga Nagar, Orissa 9.80 Crude oil insulated pipeline & gas pipeline from Barmer- Salaya for Cairns Energy 7.26 Six Lane structural bridge for NHAI at Chennai, Tamil Nadu 6.00 Zinc Smelter for Hindustan Zinc Limited at Rajasthan 5.18 LP / HP Feedwater Heater, Condensors, Deaerators for CGPL, Mundra - Tata Power 3.88 Water supply project in Rajasthan KV DC Transmission line project for PGCIL 3.44 Coal Handling Plant for Damodar Valley Corporation at Jharkhand 3.30 Reactors for HPC L-Mittal Energy Limited 2.43 Railway siding for Sterlite Industries at Jharsuguda, Orissa International 132/11 KV Substation at Jebel Ali Horse Race course at Dubai for DEWA /11 KV Primary Sub station & associated Cable at Abu Dhabi for ADWEA 2.10 July 28,

21 Details of Other Income (Annexure 2) Rs. Million Q1 09 Q1 08 Other Operational Income Miscellaneous Income Interest Income Dividend from S&A Companies / Trade Investments Recurring /Operating Other Income (i) 1, Exchange Gain 177 1,335 Income from Other Investments Miscellaneous Income Non-operating Other Income (ii) 825 1,609 Total Other Income (i) + (ii) 2,018 2,115 July 28,