Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q1 FY16 Earnings Presentation
33 slides from Larsen & Toubro's earnings presentation, Jul 31, 2015
Slide 1: Larsen & Toubro Analyst Presentation – Q1 FY16
Larsen & Toubro Analyst Presentation – Q1 FY16 July 31, 2015
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 Segment / Group Group Key Performance Performance Outlook Subsidiaries’ Highlights Summary Performance 3
Slide 4: Presentation Outline
Presentation Outline Segment / Group Group Key Performance Performance Outlook Subsidiaries’ Highlights Summary Performance 4
Slide 5: Q1 FY16 Performance Highlights
Q1 FY16 Performance Highlights Order PAT Inflow -37% -21% EBITDA Order Margin Book -1.9% +22% Revenue +7% 5
Slide 6: Presentation Outline
Presentation Outline Segment / Group Group Key Performance Performance Outlook Subsidiaries’ Highlights Summary Performance 6
Slide 7: Group level Order Inflow & Order Book
Group level Order Inflow & Order Book Amount in ` Bn Order Inflow Order Book 334 2390 1954 264 625 148 575 -21% 81 22% 1765 187 183 1379 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Domestic International Domestic International Sluggish pace of awards in Infrastructure segment Investment momentum in Industrial c
Slide 8: Group Performance – Sales & Costs
Group Performance – Sales & Costs % ` Billion Q1 FY15 Q1 FY16 FY15 Change Net Sales / Revenue from 189.75 202.52 7% 920.05 Operations ----International Sales 48.50 66.09 36% 259.26 % of Total Sales 26% 33% - 28% Mfg, Cons. & Opex (MCO) 133.29 144.97 9% 673.34 Staff Costs 17.51 20.84 19% 79.25 Sales,
Slide 9: Performance Summary – Operational Costs & Profitability
Performance Summary – Operational Costs & Profitability Q1 FY16 EBITDA, 11.3% Sales, adm. & (13.2%) other Exp., Material cost, 6.8% 29.7% (7.3%) (30.5%) Staff Costs, 10.3% (9.2%) Other Subcontracting Opex, charges, 21.6% 20.3% (20.0%) (19.8%) Figures in brackets indicate corresponding period of the
Slide 10: Group Performance Summary Extracts
Group Performance Summary Extracts % ` Billion Q1 FY15 Q1 FY16 FY15 Change EBITDA 25.11 22.90 -9% 113.33 EBITDA Margin 13.2% 11.3% -1.9% 12.3% Interest Expenses (7.74) (7.07) -9% (28.51) Depreciation (8.07) (6.22) -23% (26.23) Other Income 2.77 2.57 -7% 10.10 Provision for Taxes (4.49) (5.46) 22% (2
Slide 11: Group Balance Sheet
Group Balance Sheet Incr / ` Billion Jun-15 Mar-15 (Decr) Net Worth 414.18 409.09 5.09 Minority 56.55 49.99 6.56 Borrowings (Fin. Serv.) 449.97 430.10 19.87 Other Non-Current Liabilities 501.86 405.58 96.27 Other Current Liabilities 670.97 647.06 23.91 Total Sources 2,093.52 1,941.82 151.70 Net Fixe
Slide 12: Group Cash Flow (Summarised)
Group Cash Flow (Summarised) ` Billion Q1 FY16 Q1 FY15 Operating Profit 23.62 23.70 Adjustments for NWC (6.34) (6.02) Direct Taxes (Paid) / Refund - Net (5.61) (5.21) Net Cash from Operations (A) 11.68 12.48 Investments in Fixed Assets (Net) (15.90) (18.29) ICD Proceeds from/(to) Associate Cos. (0.0
Slide 13: Presentation Outline
Presentation Outline Segment / Group Group Key Performance Performance Outlook Subsidiaries’ Highlights Summary Performance 13
Slide 14: Segment Composition
Segment Composition Metallurgical & Electrical & Infrastructure Power Heavy Engineering Material Handling Automation Process Plant Electrical Standard Building & Factories EPC – Coal & Gas Ferrous Equipment Products Nuclear Power Plant Electrical Systems & Transportation Infra Thermal Power Plant No
Slide 15: Segmental Breakup of Orders – Q1 FY16
Segmental Breakup of Orders – Q1 FY16 Hydrocarbon E&A 13% Services HE 4% (17%) 19% MMH 4% (4%) (16%) 6% (8%) (1%) Power Others 1% 8% (5%) (6%) Power 9% MMH Infrastructure (9%) 5% HE E&A 45% (5%) 4% 1% (4%) (43%) Order Inflow (2%) Rs 264 Bn Hydrocarbon 7% (7%) Infrastructure Others 71% 3% (70%) (3%)
Slide 16: Revenue Breakup – Q1 FY16
Revenue Breakup – Q1 FY16 Segmental Breakup Hydrocarbon IT & TS E&A 11% 10% Fin. Services HE 5% 9% 3% Devl. Proj. MMH 6% 2% Others Power 7% 6% Geographical breakup Infrastructure 41% 33% 67% Domestic International 16
Slide 17: Infrastructure Segment
Infrastructure Segment Amount in ` Bn Revenues & Margin Robust revenue growth driven by large order backlog International growth contributed by Power T&D, Transportation Infra and Heavy Civil Infra Steady margins achieved through efficient execution and stable commodity prices 17
Slide 18: Power Segment
Power Segment Amount in ` Bn Revenues & Margin Revenue growth driven by improved opening order book position International revenues contributed by Bangladesh job Margin variation due to job mix and early stage execution of new orders 18
Slide 19: Metallurgical & Material Handling (MMH) Segment
Metallurgical & Material Handling (MMH) Segment Amount in ` Bn Revenues & Margin Revenue decline due to reduced order book and slow pace of execution in some jobs Recent order wins yet to start contributing Margin drop due to lower level of operations and cost provisions 19
Slide 20: Heavy Engineering Segment
Heavy Engineering Segment Amount in ` Bn Revenues & Margin Investment environment remains lacklustre Contraction in revenues arising out of depleted order book Lower realisations, sub-optimal volumes and cost & time overruns affecting margins 20
Slide 21: Electrical & Automation (E&A) Segment
Electrical & Automation (E&A) Segment Amount in ` Bn Revenues & Margin Muted revenue growth achieved in the face of sluggish industrial demand conditions Margin improvement due to soft commodity prices and operational efficiency 21
Slide 22: Hydrocarbon Segment
Hydrocarbon Segment Amount in ` Bn Revenues & Margin Orders booked in FY15 (International and Domestic) contributing to revenue growth Challenging legacy Middle East projects in the process of being closed out The business has invested in a localised organisational build up in GCC region Muted EBITD
Slide 23: IT & Technology Services Segment
IT & Technology Services Segment Amount in ` Bn Revenues & Margin Robust growth in revenues contributed by BFSI segments in IT and Industrial Products segment in TS Stable margins maintained through continued execution efficiency and favourable currency 23
Slide 24: Others Segment
Others Segment Amount in ` Bn Revenues & Margin Revenue growth driven by Construction Equipment and Valves businesses Margin improvement contributed by Realty and Construction Equipment businesses 24
Slide 25: Developmental Projects Segment
Developmental Projects Segment Amount in ` Bn Revenues EBITDA Increase in Concessions business due to traffic growth and 3 new operational road SPVs Nabha Power (2x700 MW) revenue increase due to operationalization of 2nd Unit 25
Slide 26: Concessions Business Portfolio – SPVs
Concessions Business Portfolio – 26 SPVs Roads and Bridges: Portfolio: 17 projects (1764 Km); 14 Operational Project Cost: `187 Bn Power: Portfolio: 5 projects (2270 MW); 1 Operational Project Cost: `178 Bn Ports: Portfolio: 2 projects (18.5 MTPA) - Operational Project Cost: `21 Bn Metros: Portfolio
Slide 27: L&T Finance Holdings
L&T Finance Holdings % ` Billion Q1 FY15 Q1 FY16 FY15 Change Networth (Incl. Pref. Cap.) 73.68 85.29 16% 77.40 Borrowings 362.76 441.37 22% 420.91 Loans and Advances 407.64 492.19 21% 472.32 Mutual Fund Average AUM 198.95 222.13 12% 224.97 Gross NPA (%) - 150 DPD 4.63% 3.05% -1.6% 3.08% Net NPA (%)
Slide 28: Presentation Outline
Presentation Outline Segment / Group Group Key Performance Performance Outlook Subsidiaries’ Highlights Summary Performance 28
Slide 29: Outlook – Wide circles of influence
Outlook – Wide circles of influence
Slide 30: Thank You
Thank You ENGINEERING | MANUFACTURING | CONSTRUCTION | TECHN NCIAL S LARSEN & TOUBRO
Slide 31: Annexure-1: Group Profit & Loss
Annexure-1: Group Profit & Loss L&T & L&T Group Fin. Devl. ` Billion IT & TS Others (Incl. % Services * Projects Q1 FY16 Q1 FY15 Eliminations) Change Revenue from Operations 21.01 17.83 12.03 151.66 202.52 189.75 7% EBITDA 4.44 2.38 3.13 12.96 22.90 25.11 -9% Interest Expenses (0.02) (0.02) (3.30) (
Slide 32: Annexure 2: Group Balance Sheet
Annexure 2: Group Balance Sheet L&T & L&T Group Fin. Devl. ` Billion IT & TS Others (Incl. Services * Projects Inc / Eliminations) Jun-15 Mar-15 (Dec) Net Worth (Excl. Pref. Cap.) 25.2 39.5 56.5 293.0 414.2 409.1 5.1 Minority Interest 0.0 39.3 10.5 6.8 56.5 50.0 6.6 Borrowings 7.9 450^ 290.9^ 201.0
Slide 33: Annexure 3: Group Cash Flow (Summarised)
Annexure 3: Group Cash Flow (Summarised) L&T & L&T Group Fin. Devl. ` Billion IT&TS Others (Incl. Services@ Projects Eliminations) Q1 FY16 Q1 FY15 Operating Profit 4.40 2.51 3.06 13.66 23.62 23.70 Changes in Working Capital (0.41) (0.60) (3.80) (1.53) (6.34) (6.02) Direct Taxes (Paid) / Refund - Net