Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q3 FY17 Earnings Presentation
29 slides from Larsen & Toubro's earnings presentation, Jan 28, 2017
Slide 1: Analyst Presentation – Q3 / 9M FY17
Larsen & Toubro Analyst Presentation – Q3 / 9M FY17 January 28, 2017
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 Group Performance Highlights Group Performance Segment / Key subsidiaries 3
Slide 4: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Segment / Key subsidiaries 4
Slide 5: Performance Highlights
Performance Highlights Q3 9M 1% Revenues 6% 19% EBITDA 14% 39% Profit After Tax 59% 10% Order Inflows 3% 5
Slide 6: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Segment / Key subsidiaries 6
Slide 7: Group level Order Inflow & Order Book
Group level Order Inflow & Order Book Amount in ` Bn Order Inflows Order Book 929 957 929 957 2586 3% 2550 1% 296 325 694 753 387 349 (32%) (34%) (27%) (29%) 311 282 633 632 1,856 1,833 (68%) (66%) (73%) (71%) 260 297 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 Q1 Q2 Q3 Domestic International Do
Slide 8: Group Performance – Sales & Costs
Group Performance – Sales & Costs Q3 FY16 Q3 FY17 % Change ` Billion 9M FY16 9M FY17 % Change FY16 259.28 262.87 1% Revenue from Operations 691.00 731.83 6% 1,019.75 88.21 95.90 9% International Revenue 227.20 261.42 15% 323.37 34% 36% % of Revenue 33% 36% 32% 175.81 172.83 -2% Mfg, Cons. & Opex (MC
Slide 9: Group Performance Summary - Profitability
Group Performance Summary - Profitability Q3 FY16 Q3 FY17 % Change ` Billion 9M FY16 9M FY17 % Change FY16 21.26 25.23 19% EBITDA 58.81 67.12 14% 103.85 8.2% 9.6% 1.4% EBITDA Margin 8.5% 9.2% 0.7% 10.2% (4.04) (3.79) -6% Interest Expenses (12.16) (10.43) -14% (16.55) (3.68) (7.22) 96% Depreciation (
Slide 10: Group Balance Sheet
Group Balance Sheet ` Billion Dec-16 Mar-16 Incr / (Decr) Equity & Reserve 471.02 444.55 26.48 Non Controlling Interest 32.55 27.11 5.44 Borrowings - Financial Services 585.32 545.86 39.46 Development Projects 152.99 142.03 10.96 Others 186.19 193.43 (7.24) Other Non-Current Liabilities 24.30 8.44 1
Slide 11: Group Cash Flow
Group Cash Flow Q3 FY16 9M FY16 ` Billion Q3 FY17 9M FY17 24.79 65.83 Operating Profit 26.12 69.62 (6.28) (5.24) Changes in Working Capital 10.22 9.59 (8.75) (22.49) Direct Taxes paid (9.51) (22.84) 9.75 38.10 Net Cash from Operations (A) 26.83 56.37 (7.27) (33.75) Investments in Fixed Assets (Net)
Slide 12: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Segment / Key subsidiaries 12
Slide 13: Segment Composition
Segment Composition Electrical & Infrastructure Power Heavy Engineering Automation Buildings & Factories Process Plant Electrical Standard EPC – Coal & Gas Equipment Products Transportation Infra Heavy Civil Infra Thermal Power Plant Nuclear Power Plant Electrical Systems & Water & Effluent Construc
Slide 14: Segmental Breakup of Orders – 9M FY17
Segmental Breakup of Orders – 9M FY17 HE E&A Hydrocarbon 2% 5% 12% (2%) (4%) (6%) Services 17% Power (17%) 3% (3%) Others 6% (8%) Power HE E&A 6% 3% 1% Infrastructure (8%) (3%) (1%) 55% Hydrocarbon (60%) Order Inflow 8% ₹ 957 Bn (5%) Others 7% Infrastructure (8%) 75% (75%) Figures in brackets indica
Slide 15: Revenue Breakup – 9M FY17
Revenue Breakup – 9M FY17 Segmental Breakup E&A Hydrocarbon IT & TS 4% 10% 10% HE Fin. Services 3% 9% Devl. Proj. Power 4% 7% Others 8% Geographical breakup Infrastructure 45% 36% (33%) 64% (67%) Figures in brackets indicate corresponding period of the Previous Year Domestic International 15
Slide 16: Infrastructure Segment
Infrastructure Segment Amount in ` Bn Net Revenues & Margin Modest sales growth on execution headwinds and slower payment cycles Heavy Civil and Power T&D registers better margin Q3 Margin benefits from cost reduction & design optimization initiatives 16
Slide 17: Power Segment
Power Segment Amount in ` Bn Net Revenues & Margin Revenue decline due to lower order-book and international revenue taper Lower Margins in Q3 due to higher proportion of cost jobs MHPS JVs consolidated at PAT level 17
Slide 18: Heavy Engineering Segment
Heavy Engineering Segment Amount in ` Bn Net Revenues & Margin Revenue growth impacted by lower order book and stage of execution Previous year margin impacted by cost and time overruns CY margin improved both in PPN and D&A Business 18
Slide 19: Electrical & Automation (E&A) Segment
Electrical & Automation (E&A) Segment Amount in ` Bn Net Revenues & Margin Lack of industrial demand continues to hamper growth Electrical Standard Product (ESP) and Control & Automation Business registers growth Margin improvement due to operational efficiencies 19
Slide 20: Hydrocarbon Segment
Hydrocarbon Segment Amount in ` Bn Net Revenues & Margin Revenue growth as conversion of orders pick-up Margin improvement on execution progress, operational efficiency and close out of legacy jobs 20
Slide 21: IT & Technology Services Segment
IT & Technology Services Segment Amount in ` Bn Net Revenues & Margin Revenue growth contributed by Insurance, Auto & Aero for IT business and Transportation & Medical Devices for Tech Services Business Margin decline on investment for scaling up of operations Thrust on mining existing custome
Slide 22: Others Segment
Others Segment Amount in ` Bn Net Revenues & Margin Weak industrial demand and low capacity utilization indicative of the business environment MMH business witnessed robust revenue growth on execution pick-up Lower offtake in construction and mining equipment and Realty projects Delayed defe
Slide 23: Developmental Projects Segment
Developmental Projects Segment Amount in ` Bn Net Revenues & Margin Segment includes Power Development, Port and Hyderabad Metro IDPL (Roads & TL) consolidated only at PAT level Lower construction revenue in Hyderabad Metro and maintenance shutdown of Nabha Power Plant impacts revenue Margin
Slide 24: L&T Finance Holdings (I-GAAP)
L&T Finance Holdings (I-GAAP) ` Billion Q3 FY16 Q3 FY17 % Change Networth 92.38 91.35 -1% (Incl. Pref.Cap and Warrants) Consolidated Debt 488.30 550.68 13% Loans and Advances 561.19 619.70 10% Mutual Fund Average AUM 250.59 351.91 40% Income from Operations 18.20 20.94 15% Net NPA (%) - 120 DPD 3.89
Slide 25: Thank You
Thank You LARSEN & TOUBRO
Slide 26: Annexure-1: Group Profit & Loss Extract
Annexure-1: Group Profit & Loss Extract L&T & L&T Group Fin. Devl. ` Billion IT & TS Others (Incl. % Services * Projects 9M FY17 9M FY16 Eliminations) Change Revenue from Operations 72.47 63.38 30.21 565.77 731.83 691.00 6% EBITDA 15.28 6.93 1.10 43.81 67.12 58.81 14% Interest Expenses (0.03) (0.01)
Slide 27: Annexure-2: Share in Profit/(Loss) of JVs/Associates
Annexure-2: Share in Profit/(Loss) of JVs/Associates ` Billion 9M FY17 9M FY16 MHPS JVs 0.77 0.19 IDPL & Subs. (4.08) (5.30) Others (1.48) (1.46) Total (4.79) (6.57) 27
Slide 28: Annexure-3: Other Comprehensive Income (OCI)
Annexure-3: Other Comprehensive Income (OCI) ₹ Billion 9M FY16 9M FY17 Changes arising out of re-measurement of defined 0.13 (0.44) benefit plans for employees MTM of investment in Debt instruments (0.33) 0.06 Changes in Foreign Currency Translation Reserve (0.32) (0.83) MTM of Off-Balance Sheet Hed
Slide 29: Annexure 4: Concessions Business Portfolio – SPVs
Annexure 4: Concessions Business Portfolio – 21 SPVs Roads and Bridges: Portfolio: 15 projects (1661 Km); 13 Operational Project Cost: `161 Bn Power (Excl. Projects under DPR): Portfolio: 2 projects (1499 MW); 1 Operational Project Cost: `112 Bn Ports: Portfolio: 2 projects (18 MTPA) - Operational P