Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — FY2010 Earnings Presentation
36 slides from Larsen & Toubro's earnings presentation, May 17, 2010
Slide 1: Larsen & Toubro Limited
LARSEN & TOUBRO LIMITED 17th May 2010
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 f from those h in such h forward f d looking l k sta
Slide 3: Presentation Outline
Presentation Outline Sectoral L&T Parent Segmental Group Opportunities Performance Performance Performance & Outlook 17th May 2010 3
Slide 4: Presentation Outline
Presentation Outline Sectoral L&T Parent Segmental Group Opportunities & Performance Performance Performance Outlook 17th May 2010 4
Slide 5: Performance Highlights
Performance Highlights All figures in Rs. Billion Key Parameters Q4 FY10 Q4 FY09 Change FY10 FY09 Change Order Inflow 238.43 125.17 90% 695.72 516.21 35% Order Book - 31st March 1,002.39 703.19 43% N t Sales Net S l excl. l RMC 133 75 133.75 104 69 104.69 28% 366 75 366.75 330 41 330.41 11% Company
Slide 6: Sustaining Growth
Sustaining Growth Order Inflow Net Sales 696 367 516 336 on on 420 Rs. Billio Rs. Billio 249 306 224 147 176 FY 06 FY 07 FY 08 FY 09 FY 10 FY 06 FY 07 FY 08 FY 09 FY 10 O d B Order Book k R Recurring i PAT 1002 31.9 703 27.1 Rs. Billion Rs. Billion 21 0 21.0 527 13.9 369 249 8.6 FY 06 FY 07 FY 08 FY
Slide 7: Order Inflow & Order Book
Order Inflow & Order Book Order Inflow Order Book 1002.39 695.72 35% 43% 516.21 703.19 90% 238.43 125.17 Q4 FY09 Q4 FY10 FY09 FY10 FY09 FY10 17th May 2010 All figures in Rs. Billion 7 7
Slide 8: Order Inflow & Order Book – FY10
Order Inflow & Order Book – FY10 Sectoral Break-up Order Inflow: Rs. 695.72 Bn 27% 33% 20% 13% 7% Order Book: Rs 1002.39 Rs. 1002 39 Bn 33% 30% 15% 16% 6% Infrastructure Power Hydrocarbons Process Others Infrastructure Power Hydrocarbons Process Others ` Roads & Bridges ` Generation ` Upstream ` Min
Slide 9: Order Inflow & Order Book – FY10
Order Inflow & Order Book – FY10 Order 95% 4% 1% Inflow Order 93% 4% 3% Book Domestic Middle East Others Geographical G hi l Break-up Order 59% 38% 3% Inflow Order 53% 40% 7% Book Customer Public Private Devl. Projects - L&T Profile 17th May 2010 9
Slide 10: Performance Summary - Topline
Performance Summary - Topline % % Q4 FY10 Q4 FY09 Rs. Billion FY10 FY09 Change Change 133.75 104.69 28% Net Sales 366.75 336.47 9% 15.49 20.02 --- Exports 64.46 64.60 2.10 1.36 Other Operational Income 3.60 2.92 135.85 106.05 28% Total Net Revenues 370.35 339.39 9% Excluding RMC Business 133 133.75
Slide 11: Performance Summary – Operational Costs
Performance Summary – Operational Costs Q4 FY10 Q4 FY09 FY10 FY09 % to Total % to Total Net Particulars % to Total % to Total Net Rs Bn Rs Bn Rs Bn Rs Bn Net Revenues Revenues Net Revenues Revenues 104.08 76.6% 78.66 74.2% Manf., Cons. & Opex (MCO) 284.53 76.8% 262.72 77.4% 6.14 4.5% 4.89 4.6% Staff
Slide 12: Performance Summary – Profitability
Performance Summary – Profitability % % Q4 FY10 Q4 FY09 Rs. Billion FY10 FY09 Change Change 20.51 14.84 38% EBITDA 48.16 39.22 23% 15.1% 14.0% EBITDA Margins 13.0% 11.6% (1.36) (0.47) 189% Interest Expenses (5.05) (4.16) 22% (1.16) (0.89) 31% Depreciation (4.15) (3.06) 35% 3.30 2.35 Other Income 9.1
Slide 13: Performance Summary – Balance Sheet
Performance Summary – Balance Sheet Increase / Networth and Loan funds Rs. Billion Mar-10 Mar-09 includes proceeds from (Decrease) QIP and FCCB resp. Q p N t Worth Net W th 183 12 183.12 124 59 124.59 58 53 58.53 Gross D/E ratio: 37% Vs Loan Funds 68.01 65.56 2.45 53% Deferred Tax Liabilities Capex
Slide 14: Cash Flow Statement
Cash Flow Statement Rs. Billion FY 10 FY 09 Operating Profit 52.44 44.66 Adjustments for Working Capital Changes 17.58 (21.14) Direct Taxes (Paid) / Refund - Net (15.19) (8.73) Net Cash from Operations 54.83 14.79 Investments in Fixed Assets (Net) (15.60) (19.80) (Investment) / Divestment in S&A and
Slide 15: Presentation Outline
Presentation Outline Sectoral L&T Parent Segmental Group Opportunities & Performance Performance Performance Outlook 17th May 2010 15
Slide 16: Segmental Break-up – FY10
Segmental Break-up – FY10 Net Revenues Machinery & Industrial Others Products 1.0% Engineering 5.7% (3.1%) & Electrical & (7.0%) Construction Electronics 86.0% 7 3% 7.3% (82 5%) (82.5%) (7.4%) Machinery & EBITDA Industrial Others Products 1.0% 8 9% 8.9% (1 5%) (1.5%) Engineering (10.7%) & Electrical
Slide 17: ‘Engineering & Construction’ Segment
‘Engineering & Construction’ Segment % % Q4 FY10 Q4 FY09 Rs. Billion FY10 FY09 Change Change 220.57 112.92 95% Total Order Inflows 638.99 454.18 41% 8.45 25.10 --- Exports 29.31 65.75 Total Order Book 983 86 983.86 687 53 687.53 43% --- Exports 71.28 100.63 119.69 91.72 30% Total Net Revenues 318.42
Slide 18: ‘Electrical & Electronics’ Segment
‘Electrical & Electronics’ Segment % % Q4 FY10 Q4 FY09 Rs. Billion FY10 FY09 Change Change 8.63 6.94 24% Total Net Revenues 26.94 25.12 7% 0 79 0.79 1 23 1.23 ---Exports E t 2 74 2.74 4 29 4.29 1.43 0.89 61% EBITDA 4.23 3.39 25% 16.6% 12.9% EBITDA Margins 15.7% 13.5% Net Segment g Assets 11.32 12.47
Slide 19: ‘Machinery & Industrial Products’ Segment
‘Machinery & Industrial Products’ Segment % % Q4 FY10 Q4 FY09 Rs. Billion FY10 FY09 Change Change 6.53 6.07 8% Total Net Revenues 21.35 23.97 -11% 0.50 1.60 ---Exports 2.06 5.87 1.51 1.14 33% EBITDA 4.71 4.85 -3% 23.1% 18.7% EBITDA Margins 22.1% 20.2% Net Segment Assets 2.24 4.13 -46% Q4 Revenues in
Slide 20: Presentation Outline
Presentation Outline Sectoral L&T Parent Segmental Group Opportunities & Performance Performance Performance Outlook 17th May 2010 20
Slide 21: Consolidated P&L Statement
Consolidated P&L Statement L&T L&T Group Rs Billion FY10 FY10 FY09 % Change Total Net Reveunes (Net Sales + Other 370.35 439.70 405.11 9% O Operational i l IIncome)) 48.16 EBITDA 64.39 50.24 28% 13.0% EBITDA Margins 14.6% 12.4% (5.05) Interest Expenses (6.92) (5.28) (4.15) Depreciation (9.79) (7.28)
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet L&T L&T Group Rs. Billion Mar-10 Mar-10 Mar-09 Inc/(Dec) 183.12 Net Worth 209.91 139.87 70.04 - Minority y Interest 10.88 10.59 0.29 Loan Funds: - Financial Services 95.05 62.16 32.89 - Dev. Projects 55.75 43.23 12.52 68.01 Others 75.76 78.61 (2.85) - Deferred Payment Liab
Slide 23: L&T Infotech
L&T Infotech Revenues (Rs. Bn) PAT (Rs. Bn) 0.90 5.12 0.81 5.67 4.97 0.65 0.73 4.57 5.24 0.57 4.52 4.69 0.59 4.73 0.61 0.60 FY09 FY10 FY09 FY10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY09 FY10 FY09 FY10 20.40 19.11 2.66 2.80 ◊ YoY o Revenue e e ue co contraction t act o due to s slowdown o do in US and a d Europe
Slide 24: Financial Services
Financial Services Total Income PAT Rs. Billion % % FY10 FY09 FY10 FY09 Change Change L&T Finance Limited 9.86 7.96 24% 1.56 0.99 58% L&T Infrastructure Finance Limited 4.52 2.96 53% 1.11 0.77 45% L&T Finance Revenue growth led by Rural Equipment Finance and Micro Finance M PAT Margini improvement i
Slide 25: Developmental Projects (as on date)
Developmental Projects (as on date) Roads and Bridges: Portfolio: 14 projects; 7 operational, 7 under implementation Development: 5328 lane km Project Outlay: Rs. 127 Bn Ports: Portfolio: 3 projects; 1 operational, 2 under implementation Capacity: 34 Mn TPA Project Outlay: Rs. 53 Bn Urban Infrastruc
Slide 26: Presentation Outline
Presentation Outline Sectoral L&T Parent Segmental Group Opportunities & Performance Performance Performance Outlook 17th May 2010 26
Slide 27: Sectoral Opportunities - Infrastructure
Sectoral Opportunities - Infrastructure Environment Increased budgetary support Increase in pace of NHAI awards Thrust on PPP mode Water shortages Real Estate Pick-up Opportunities O t iti Roads & Bridges: National & State Highways Metros: Underground & Elevated Metros in Tier I & II c
Slide 28: Sectoral Opportunities - Power
Sectoral Opportunities - Power Environment Power deficit and increasing energy requirements Governments Governments’ plans to speed up Coal linkages Increasing Private players participation (PPP) Thrust on Supercritical power plant technology Government favoring domestic BTG manufacturers
Slide 29: Sectoral Opportunities - Hydrocarbon
Sectoral Opportunities - Hydrocarbon Environment Crude – Price stability and demand Hydrocarbon Capex picking up Intense Domestic and International Competition Middle East pick-up S a signs Small s g s of o pick-up p c up in FPSO SO and a d Rig g market a e Opportunities EPC projects in
Slide 30: Sectoral Opportunities - Process
Sectoral Opportunities - Process Environment Minerals & Metals ¾ India is net importer of steel p ¾ Demand outpacing g capacity p y ¾ PSU and Private projects still in cautious mode Fertilizers ¾ Increase in demand for Food grains and volatility y in International Urea Price ¾ Availability of Na
Slide 31: Outlook
Outlook E Economic i Sectoral ¾ Robust Growth (GDP/IIP) ¾ Worrisome Fiscal Deficit ¾ Heightened Domestic & ¾ Inflation is a concern International competition p ¾ Adequate liquidity but ¾ Strong Power Gen. capex tightening policy ¾ Middle East picking up ¾ Increasing interest rates ¾ Increasing NHAI
Slide 32: Thank You
Thank You Some of the largest & heaviest equipments in the world have been manufactured by L&T Many of the country’s prized India’s biggest marine Asia’s highest viaduct landmarks have been built by L&T equipment – an oil & gas (Konkan Railway) processing complex The World’s largest FCC The world’s
Slide 33: Annexure 1: Major Orders Booked in Q4 FY10
Annexure 1: Major Orders Booked in Q4 FY10 Description Rs Bn ---- Domestic Ammonia Feedstock Conversion Projects at Punjab & Haryana for National Fertilisers Ltd. 21.56 Aromatics Complex at Mangalore SEZ for ONGC Mangalore Petrochemicals Ltd (OMPL) 20.35 EPC project for Steam Turbine & Generators an
Slide 34: Annexure 2: Details of Other Income
Annexure 2: Details of Other Income Rs. Billion FY10 FY09 Recovery from S&A / JV Companies 0.66 0.50 Technical Fees / IJV Profits 0 70 0.70 0 65 0.65 Others 2.24 1.77 Total - Other Operational Income 3.60 2.92 Interest Income 1.28 1.72 Dividend from S&A Companies 1.08 0.72 Income from Other Investme
Slide 35: Annexure 3: Details of Extraordinary & Exceptional items
Annexure 3: Details of Extraordinary & Exceptional items (Amt in Rs. Bn) FY 10 FY 09 Exceptional Items (Net of Tax) Profit on Sale of Investment in Ultratech Cement 10.20 - Profit on sale of stake in Associate Company 0.52 - Profit on part buy-back of shares by Associate Co. 0.23 - Provision for dim
Slide 36: Annexure 4: Details of Increase in support to S&A in FY10
Annexure 4: Details of Increase in support to S&A in FY10 – Investment, ICDs and Advance against Equity Increase in Support to S&A Rs. Bn L&T Power Development 8.19 Urban Infra SPVs 4.62 L&T Infra Finance 4.25 L&T Shipbuilding 3.74 Road Projects 2.58 IDPL 2.10 L&T Finance 1.25 Forgings 1.11 L&T Inte