Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q1 FY10 Earnings Presentation
24 slides from Larsen & Toubro's earnings presentation, Jul 16, 2009
Slide 1: Analyst Presentation Q1 FY10
A l tP Analyst Presentation t ti Q1 FY10
Slide 2: Forward looking statements 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 un
Slide 3: Q1 FY10 Performance Summary, Segment Analysis, Subsidiaries, Outlook
Q1 FY10 Performance Summary S Segment tAAnalysis l i Performance of Key Subsidiaries Outlook July 16, 2009 3
Slide 4: Q1 FY10 Performance Summary
Qi FY10 Performance Summary July 16, 2009
Slide 5: Order inflows, order book and net sales
FY 09 Rs. Billion Q1 FY10 Q1 FY09 % Change 516 21 Order Inflows 516.21 95 71 95.71 122 34 122.34 -22% 703.19 Order Book 716.53 581.95 23% 336.46 Net Sales 73.63 69.01 7% 2.80 Other Operational Income 0.45 0.41 339.26 Total Net Revenues 74.08 69.42 Excluding RMC Business Order Inflows 95 71 95.71 119
Slide 6: Operational costs as percentage of revenues
Q1 FY10 Q1 FY09 Particulars % to Total Net % to Total Rs Bn Rs Bn Revenues Net Revenues Manufacturing, Construction 57.22 77.3% 55.15 79.5% & Operating (MCO) Expenses Staff Costs 5.11 6.9% 3.98 5.7% Sales, S l administration d i i t ti & other th 3.43 4.6% 3.19 4.6% expenses Total Operational Costs
Slide 7: EBITDA, PAT and exceptional items
FY 09 Rs. Billion Q1 FY10 Q1 FY09 % Change 39.35 EBITDA 8.32 7.10 17% 11.6% EBITDA Margins 11.2% 10.2% (4.28) Interest Expenses (1.10) (0.51) 117% (3.06) Depreciation (0.94) (0.66) 42% 7.39 Other Income 2.23 1.62 (12.31) Provision for Taxes (2.73) (2.53) 27.09 PAT before Exceptional Items 5.78 5.02
Slide 8: Business sectors overview
Infrastructure Hydrocarbons ` Roads & Bridges ` Upstream ` Ports & Harbours ` Mid & Downstream ` Airports p ` Pipelines ` Railways ` Valves ` Buildings & Factories ` Urban Infra ` Water Process P ` Minerals & Metals ` Bulk Material Handling ` Fertilizer Power ` Generation ` Equipments ` Electrificat
Slide 9: Order inflows, net sales and order book by geography
ORDER INFLOWS NET SALES ORDER BOOK Domestic Middle East Other Exports July 16, 2009 9
Slide 10: Order Inflows and Order Book
Order Inflows Order Book July 16, 2009 10
Slide 11: Balance sheet and gross debt/equity
Increase / Rs. Billion Jun-09 Mar-09 (Decrease) Net Worth 141.49 124.59 16.90 L Loan Funds F d 65 85 65.85 65 56 65.56 0 29 0.29 Deferred Tax Liabilities (Net) 0.69 0.49 0.20 Total Sources 208.03 190.64 17.39 Net Fixed Asset 53.80 51.95 1.85 Current Investments 64.89 48.80 16.09 Invt./ICDs/Loans & A
Slide 12: Segment Analysis
Segment Analysis July 16, 2009
Slide 13: Net revenues and EBITDA by segment
Net Revenues EBITDA July 16, 2009 13
Slide 14: Engineering & Construction segment results
FY 09 Rs. Billion Q1 FY10 Q1 FY09 % Change 454.18 Total Order Inflows 83.73 105.16 -20% 65 75 65.75 --- Exports E 4 38 4.38 13 35 13.35 687.53 Total Order Book 699.52 563.36 24% 100.63 --- Exports 96.08 90.58 279 84 Total Net Revenues 279.84 63 86 63.86 54 58 54.58 17% 51.36 --- Exports 13.51 10.41
Slide 15: Electrical & Automation segment results
% FY 09 Rs. Billion Q1 FY10 Q1 FY09 Change 25.07 Total Net Revenues 5.25 5.21 1% 4.29 ---Exports 0.52 0.68 3.39 EBITDA 0.74 0.73 1% 13.5% EBITDA Margins 14.1% 14.1% 12.47 Net Segment Assets 11.55 10.53 Order Inflows growth of 7% to Rs. 6.66 Bn driven by Engineered to Order (ETO) business within th
Slide 16: Machinery and industrial products segment results
FY 09 Rs. Billion Q1 FY10 Q1 FY09 % Change 23.97 Total Net Revenues 4.20 6.10 -31% 31% 5.87 ---Exports 0.58 1.57 4.86 EBITDA 0.99 1.50 -34% 20.3% EBITDA Margins g 23.7% 24.6% 4.13 Net Segment Assets 2.94 4.08 All businesses b i within i hi the h segment affected ff d by b slowdown l d both b h dom
Slide 17: Other segment results
FY 09 Rs. Billion Q1 FY10 Q1 FY09 % Change 10 39 Total Net Revenues 10.39 0 77 0.77 3 53 3.53 -78% 78% 3.63 ---Exports 0.71 0.72 0.67 EBITDA 0.06 0.29 -80% g 6.5% EBITDA Margins 7.8% 8.3% 1.88 Net Segment Assets 2.15 3.05 Net N R Revenues for f Q1 FY09 iincludes l d RMC sales l off Rs. R 2.69 2 69
Slide 18: Performance of Key Subsidiaries
Performance of Key Subsidiaries July 16, 2009
Slide 19: Key subsidiaries revenues and PAT
Total Revenues PAT Rs. Billion Q1 FY10 Q1 FY09 Q1 FY10 Q1 FY09 L&T Infotech Limited (Consolidated) 4 74 4.74 4 52 4.52 0 61 0.61 0 61 0.61 L&T Finance Limited 1.98 1.78 0.24 0.25 L&T Infrastructure Finance Limited 0.86 0.75 0.22 0.18 L&T Infotech: Modest Revenue growth due to global slowdown L
Slide 20: July 16, 2009
July 16, 2009 20
Slide 21: Outlook: company expects to meet its guidance
Gradual build-up of optimism Political Stability Balanced Budget – No Negatives, a few positives Early signs of recovery Ample liquidity in the system Thrust on Infrastructure Stable Oil prices Some bumps Worrisome level of fiscal deficit Public sector ordering yet to pick up Priva
Slide 22: Thank You
THANK YOU July 16, 2009 22
Slide 23: Annexure - Major Orders Booked During Q1 FY10
Annexure 1 - Major Orders Booked During Q1 FY10 Construction of Shipyard at Kattupalli, Tamil Nadu 220 KV Multi Circuit Transmission Line from MAHATRANSCO Electro-mechanical construction for process units for GGSR Project, Bathinda Pot Shell for Bharat Aluminium Co. Ltd at Korba, Chattisgarh Coal Ha
Slide 24: Other operational income and other income breakdown
Rs. Million Q1 FY10 Q1 FY09 Recovery from S&A / JV Companies 90 124 Commercial leadership fee/Technical Fees/IJV Profits 89 10 Others 277 270 Total - Other Operational Income 456 404 Interest Income 302 104 Dividend from S&A Companies 109 435 Dividend / Income from Other Investments 636 628 Profit o