Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — H1 FY2012 Earnings Presentation
26 slides from Larsen & Toubro's earnings presentation, Oct 21, 2011
Slide 1: Analyst Presentation – H1 FY12
LARSEN & TOUBRO LIMITED Analyst Presentation – H1 FY12 21st October 2011
Slide 2: Disclaimer
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 r
Slide 3: Presentation Outline
Presentation Outline H1 FY12 Performance Summary Segmental Analysis Performance of Key Subsidiaries Outlook 21st October 2011 3
Slide 4: Presentation Outline
Presentation Outline H1 FY12 Performance Summary Segmental Analysis Performance of Key Subsidiaries Outlook 21st October 2011 4
Slide 5: Performance Highlights
Performance Highlights Q2 H1 19% Sales 20% 15% Recurring PAT 14% 20 60 bps EBITDA Margins bps 21% Order Inflow 11% 23% Order Book 23% 21st October 2011 5
Slide 6: Order Inflow & Order Book
Order Inflow & Order Book Amount in ` Bn Order Inflow Order Book 23% 360.90 -11% 322.86 1,421.85 204.66 160.96 Q2 1,153.93 Q1 156.24 161.90 FY11 FY12 H1 FY11 H1 FY12 Order Inflow status reflective of challenging environment Continuing deferral of order decisions seen across the board Stepped up comp
Slide 7: Order Inflow & Order Book – H1 FY12
Order Inflow & Order Book – H1 FY12 Order Inflow: ` 322.86 Bn 40% 24% 18% 10% 8% Order Book: ` 1421.85 Bn 37% 31% 13% 15% 4% Infrastructure Power Hydrocarbon Process Others Infrastructure Power Hydrocarbons Process Others Roads and Generation Upstream Minerals & Shipbuilding Bridges Equi
Slide 8: Order Inflow & Order Book – H1 FY12
Order Inflow & Order Book – H1 FY12 6% 9% 2% 19% Order Order Geographical Inflow Book Break-up 75% 89% Domestic Middle East Others 9% 14% Customer Order Order 47% Profile 34% Inflow 57% Book 39% Private Public (Incl. PSUs) Devl. Proj - L&T 21st October 2011 8
Slide 9: Performance Summary – Sales to EBITDA
Performance Summary – Sales to EBITDA % % Q2 FY12 Q2 FY11 ` Billion H1 FY12 H1 FY11 FY11 Change Change Net Sales / Revenue 112.45 94.22 19% 207.28 172.53 20% 439.40 from Operations ---(A) 83.81 70.34 19% Mfg, Cons. & Opex (MCO) 156.89 130.73 20% 334.84 11.04 8.30 33% Staff Costs 18.70 13.94 34% 28.8
Slide 10: Sales Breakup – Operational Costs & Profitability
Sales Breakup – Operational Costs & Profitability Subcontracting charges, Q2 FY12 Other manf. 15.6% exp., (19.8%) Material cost, 7.6% 51.4% (7.5%) (47.4%) Staff Costs, 9.8% (8.8%) Sales, adm. & other Exp., Subcontracting H1 FY12 5.2% (5.9%) charges, EBITDA, Other manf. 17.3% Material cost, 10.4% exp
Slide 11: Performance Summary – Profitability
Performance Summary – Profitability % % Q2 FY12 Q2 FY11 ` Billion H1 FY12 H1 FY11 FY11 Change Change 11.74 10.02 17% EBITDA 22.97 20.16 14% 56.05 10.4% 10.6% -0.2% EBITDA Margins 11.1% 11.7% -0.6% 12.8% (1.97) (1.87) 5% Interest Expenses (3.54) (3.25) 9% (6.19) (1.71) (1.21) 41% Depreciation (3.39)
Slide 12: Performance Summary – Balance Sheet
Performance Summary – Balance Sheet Incr / Sept-10 ` Billion Sept-11 Mar-11 (Decr) 199.41 Net Worth 233.65 218.46 15.19 77.24 Loan Funds 86.15 71.61 14.54 0.84 Deferred Tax Liabilities (Net) 1.55 2.64 (1.09) 277.49 Total Sources 321.35 292.71 28.64 68.41 Net Fixed Asset 76.61 74.16 2.45 66.41 Curren
Slide 13: Presentation Outline
Presentation Outline H1 FY12 Performance Summary Segmental Analysis Performance of Key Subsidiaries Outlook 21st October 2011 13
Slide 14: Segmental Break-up – H1 FY12
Segmental Break-up – H1 FY12 Machinery & Industrial Net Revenues Products Others 6.3% 2.0% Engineering Electrical & (6.9%) (1.6%) & Electronics Construction 6.7% 85.0% (7.5%) (84.0%) Machinery & EBITDA Industrial Others Products Engineering 3.8% 9.5% & (2.3%) (10.4%) Construction Electrical & 80.9%
Slide 15: 'Engineering & Construction' Segment
‘Engineering & Construction’ Segment % % Q2 FY12 Q2 FY11 ` Billion H1 FY12 H1 FY11 FY11 Change Change 145.52 188.77 -23% Total Order Inflows 289.69 327.23 -11% 730.13 50.35 1.91 --- Exports 73.53 16.52 67.01 Total Order Book 1,398.91 1,129.92 24% 1,280.00 --- Exports 157.27 64.01 92.57 96.37 79.76 2
Slide 16: 'Electrical & Electronics' Segment
‘Electrical & Electronics’ Segment % % Q2 FY12 Q2 FY11 ` Billion H1 FY12 H1 FY11 FY11 Change Change 7.37 6.14 20% Total Net Revenues 13.93 12.91 8% 28.36 0.49 0.54 --- Exports 1.09 1.07 2.04 0.79 0.93 -15% EBITDA 1.50 1.75 -14% 4.75 10.7% 15.2% -4.5% EBITDA Margins 10.8% 13.6% -2.8% 16.8% Net Segmen
Slide 17: 'Machinery & Industrial Products' Segment
‘Machinery & Industrial Products’ Segment % % Q2 FY12 Q2 FY11 ` Billion H1 FY12 H1 FY11 FY11 Change Change 6.49 6.72 -3% Total Net Revenues 13.00 11.93 9% 26.66 1.22 0.31 --- Exports 2.19 0.62 2.16 1.15 1.23 -7% EBITDA 2.46 2.43 1% 5.64 17.7% 18.3% -0.6% EBITDA Margins 18.9% 20.4% -1.5% 21.2% Net Se
Slide 18: 'Others' Segment
‘Others’ Segment % % Q2 FY12 Q2 FY11 ` Billion H1 FY12 H1 FY11 FY11 Change Change 2.22 1.61 38% Total Net Revenues 4.21 2.81 50% 6.60 1.92 1.18 --- Exports 3.57 2.30 5.11 0.53 0.19 174% EBITDA 0.99 0.55 81% 1.30 23.8% 12.0% 11.8% EBITDA Margins 23.5% 19.4% 4.1% 19.7% Net Segment Assets 6.30 4.32 46%
Slide 19: Presentation Outline
Presentation Outline H1 FY12 Performance Summary Segmental Analysis Performance of Key Subsidiaries Outlook 21st October 2011 19
Slide 20: L&T Infotech
L&T Infotech Amount in ` Bn Total Income Profit after Tax 2.03 33% 15.29 28% 1.08 7.92 1.59 11.52 0.78 Q2 5.86 Q1 Q2 7.37 Q1 0.95 0.81 5.66 FY11 FY12 FY11 FY12 Sales growth powered by BFSI segment Margin growth positively impacted by exchange rates, operational leverage and cost efficiencies PY PAT
Slide 21: Developmental Projects
Developmental Projects Roads & Bridges Power 16 projects 5 projects 6677 Lane Km 2828 MW Proj. Cost: ` 156 Bn Proj. Cost: ` 211 Bn Ports Metro Rails Urban Infra 3 projects 1 project 13 projects 45 MTPA 71.16 Km 24.8 Million sq.ft Proj. Cost: ` 57 Bn Proj. Cost: ` 164 Bn
Slide 22: Presentation Outline
Presentation Outline H1 FY12 Performance Summary Segmental Analysis Performance of Key Subsidiaries Outlook 21st October 2011 22
Slide 23: Where Are We Headed?
WHERE ARE WE HEADED? Strong GDP Growth Political & Bureaucratic Paralysis Governance Issues Large Reserves Resource Shortages High Domestic Business Strong (Coal, Gas, Land, Water) Savings Strategy Balance Sheet Favorable Slow Investment Demographics Decisions Talent Verticalisation Declining Pool M
Slide 24: Thank You
Thank You 21st October 2011
Slide 25: Annexure 1: Major Order Inflows in Q2 FY12
Annexure 1: Major Order Inflows in Q2 FY12 Project Details ` Bn Domestic: Prefab Structures, Civil works and other jobs for Hot Strip Mill & Blast furnace 6.87 at Tata Steel, Kalinganagar EPC work for 2 x 500 MVA, 765/400 KV Sub station for Rajasthan Rajya 4.63 Vidyut Prasaran Nigam Limited, Rajasth
Slide 26: Annexure 2: Details of Other Income
Annexure 2: Details of Other Income ` Billion H1 FY12 H1 FY11 Interest Income 2.87 1.54 Dividend from S&A Companies 1.45 1.03 Income from Current Investments 0.96 0.92 Profit on sale of long term - 0.69 investments (Satyam) Miscellaneous Income 1.31 1.77 Total - Other Income 6.59 5.95 21st October 2