Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — FY2014 Earnings Presentation
41 slides from Larsen & Toubro's earnings presentation, May 30, 2014
Slide 1: Analyst Presentation – FY14
Analyst Presentation – FY14 May 30, 2014
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 Standalone Performance Segment Analysis Group Performance Sectoral Opportunities & Outlook 3
Slide 4: Presentation Outline
Presentation Outline Standalone Performance Segment Analysis Group Performance Sectoral Opportunities & Outlook 4
Slide 5: Performance Highlights – FY14
Performance Highlights – FY14 15% Order Inflows 13% Order Book 10% Sales 22% EBITDA 25% PAT 5 5
Slide 6: Order Inflow & Order Book
Order Inflow & Order Book Amount in ` Bn Order Inflow Order Book 941 15% 13% 816 Q4 267 Q3 266 217 Q2 180 1,630 1,440 233 Q1 175 195 224 FY 13 FY 14 FY13 FY14 Growth in Order Inflows indicative of strong broad-based sectoral presence (smoothens cyclicality) in a challenging environment Focus on geog
Slide 7: Composition (Inflows/Sales/Order Book) – FY14
Composition (Inflows/Sales/Order Book) – FY14 Order Inflow 67% 33% Geographical Sales 84% 16% Break-up Order Book 79% 21% Domestic International 39% 58% 3% Order Inflow Customer Profile Order Book 40% 52% 8% Private Public (Incl. PSUs) L&T - Concessions Business 7
Slide 8: Performance Summary – Sales & Costs
Performance Summary – Sales & Costs Q4 FY14 Q4 FY13 % Change ` Billion FY14 FY13 % Change Net Sales / Revenue from 200.79 180.75 11% 565.98 516.11 10% Operations 29.66 23.79 25% ----International Sales 91.29 75.12 22% 157.10 142.63 10% Mfg, Cons. & Opex (MCO) 433.46 402.05 8% 12.29 9.79 26% Staff Co
Slide 9: Performance Summary – Operational Costs & Profitability
Performance Summary – Operational Costs & Profitability Subcontracting charges, Q4 FY14 21.7% Material cost, Other (22.8%) 51.1% mfg. (50.2%) exp., 5.5% (5.9%) Staff Costs, 6.1% (5.4%) Sales, adm. Subcontracting FY14 & other Exp., charges, Material cost, 1.2% EBITDA, 23.5% (23.6%) 46.0% (3.9%) 14.4%
Slide 10: Performance Summary – Profitability
Performance Summary – Profitability Q4 FY14 Q4 FY13 % Change ` Billion FY14 FY13 % Change 29.01 21.29 36% EBITDA 66.67 54.73 22% 14.4% 11.8% 2.6% EBITDA Margins 11.8% 10.6% 1.2% (3.05) (2.63) 16% Interest Expenses (10.76) (9.55) 13% (2.14) (1.97) 9% Depreciation (7.92) (7.28) 9% 4.95 3.89 27% Other
Slide 11: Performance Summary – Balance Sheet
Performance Summary – Balance Sheet Incr / ` Billion Mar-14 Mar-13 * (Decr) Net Worth 336.62 291.43 45.19 Non-Current Liabilities 62.81 83.01 (20.20) Current Liabilities 383.61 349.80 33.81 Total Sources 783.04 724.24 58.80 Net Fixed Assets 82.37 89.02 (6.65) Investments / Loans to S&A Cos 188.91 14
Slide 12: Cash Flow Statement
Cash Flow Statement ` Billion Q4 FY14 FY 14 Q4 FY13 FY 13 Operating Profit 29.02 72.27 22.62 61.33 Adjustments for NWC 2.07 (42.03) 4.85 (30.08) Direct Taxes (Paid) / Refund - Net (6.92) (19.77) (3.49) (16.53) Net Cash from Operations 24.17 10.47 23.98 14.72 Investments in Fixed Assets (Net) (3.43)
Slide 13: Presentation Outline
Presentation Outline Standalone Performance Segment Analysis Group Performance Sectoral Opportunities & Outlook 13
Slide 14: Segment Composition
Segment Composition Metallurgical & Infrastructure Power Heavy Engineering Material Handling Process Plant Building & Factories EPC – Coal & Gas Ferrous Equipment Thermal Power Plant Nuclear Power Plant Transportation Infra Non Ferrous Construction Equipment Heavy Civil Infra Critical Piping Water &
Slide 15: Segmental Breakup of Orders – FY14
Segmental Breakup of Orders – FY14 Heavy Engg. 4% Power 3% MMH 3% Order Inflow E&A, MIP & (` 941 Bn) Others 9% Heavy Engg. 4% Power 10% Infrastructure 81% MMH Order Book 6% (` 1630 Bn) Infrastructure E&A, MIP & 78% Others 2% 15
Slide 16: Segmental Break-up
Segmental Break-up Net Segment Revenue = 566 Bn = 516 Bn 0 Others Lea a aa Others = MIP MIP EBA E&A mmHeavy Engg Heavy Engg OMMH vans @ Power Power g Infrastructure Infrastructure FY14 FY13 ENGINEERING | \ ICTION | TECHN EBITDA Margins 21.3% GFY14 gFY13 © LARSEN & TOUBRO
Slide 17: Infrastructure Segment
Infrastructure Segment Infrastructure Q4 FY14 Q4 FY13 % Change ` Billion FY14 FY13 % Change 132.26 112.79 17% Net Segment Revenue 343.84 279.93 23% 19.16 15.78 21% --- International 53.06 44.91 18% 16.60 12.96 28% EBITDA 42.26 31.65 34% 12.6% 11.5% 1.1% EBITDA Margins 12.3% 11.3% 1.0% Capital Employ
Slide 18: ‘MMH & Power’ Segments
‘MMH & Power’ Segments MMH Q4 FY14 Q4 FY13 % Change ` Billion FY14 FY13 % Change 17.17 18.14 -5% Net Segment Revenue 53.13 58.55 -9% 0.51 0.36 --- International 1.39 0.57 3.27 4.05 -19% EBITDA 9.03 10.46 -14% 19.1% 22.3% -3.2% EBITDA Margins 17.0% 17.9% -0.9% Capital Employed 31.44 25.91 21% Power Q
Slide 19: ‘Heavy Engineering and E&A’ Segments
‘Heavy Engineering and E&A’ Segments Heavy Engineering (HE) Q4 FY14 Q4 FY13 % Change ` Billion FY14 FY13 % Change 13.28 8.90 49% Net Segment Revenue 42.24 27.99 51% 2.99 2.05 46% --- International 13.51 9.57 41% 2.96 1.92 54% EBITDA 7.69 5.95 29% 22.3% 21.6% 0.7% EBITDA Margins 18.2% 21.3% -3.1% Cap
Slide 20: ‘MIP and Others’ Segments
‘MIP and Others’ Segments MIP Q4 FY14 Q4 FY13 % Change ` Billion FY14 FY13 % Change 4.23 6.93 -39% Net Segment Revenue 18.35 22.25 -18% 0.82 2.19 -63% --- International 4.58 5.33 -14% 0.50 1.13 -56% EBITDA 2.34 3.62 -35% 11.9% 16.3% -4.4% EBITDA Margins 12.7% 16.3% -3.6% Capital Employed 5.28 5.96 -
Slide 21: Presentation Outline
Presentation Outline Standalone Performance Segment Analysis Group Performance Sectoral Opportunities & Outlook 21
Slide 22: Five Year Performance - Group
Five Year Performance - Group Net Sales Order Inflow* 851 941 745 816 643 760 644 Billion 520 ` Billion ` Billion 537 ` `Billion 440 FY 10 FY 11 FY 12 FY 13 FY 14 FY 10 FY 11 FY 12 FY 13 FY 14 Order Book* EBITDA 107.9 1,630 99.3 1,440 1,334 88.8 1,172 76.8 ` Billion 839 64.2 ` Billion FY 10 FY 11 FY
Slide 23: Development Projects PAT Components (Consolidated)
Standalone PAT vs Consol. PAT Figures in ` Bn. 6.55 -1.73 -3.50 54.93 -8.65 -2.48 3.21 0.69 49.02 PAT from Ordinary Activities PAT after Minority Interest Development Projects Special Steels & Forgings Financial Services S&A Co. Dividend (Standalone) Shipbuilding (Consolidated) PAT Components Infote
Slide 24: Consolidated P/L Extracts
Consolidated P/L Extracts L&T Group L&T Dev. Fin. L&T & ` Billion IT & TS % FY14 Projects Services Others FY14 FY13 Change 565.98 Income from Operations 17.04 63.53 51.71 719.00 851.28 744.98 14% 66.67 EBITDA 8.03 14.25 5.99 79.28 107.54 99.29 8% (10.76) Interest Expenses (12.59) (0.31) - (18.51) (3
Slide 25: Consolidated Balance Sheet (Summarised)
Consolidated Balance Sheet (Summarised) L&T Group L&T Dev. Fin. L&T & ` Billion IT & TS Mar-14 Projects Services Others Mar-14 Mar-13 Inc/(Dec) Net Worth (including 336.62 88.81 69.91 24.84 225.35 408.91 365.13 43.78 Minority Interest) Borrowings & Def. 114.59 247.78 357.66 1.42 229.48 836.35 666.26
Slide 26: Consolidated Cash Flows
Consolidated Cash Flows FY14 FY13 ` Billion Dev. Fin. L&T & IT&TS L&T Group L&T Group Projects Services Other S&A Operating Profit (net of tax paid) 8.04 2.90 11.41 60.00 82.35 78.08 Changes in Working Capital (28.95) (1.48) (2.27) (54.87) (87.57) (62.80) Net Cash from Operations (20.91) 1.41 9.14 5
Slide 27: L&T Infotech (Consol.)
L&T Infotech (Consol.) Revenues : Geographical Mix Parameters Unit FY14 FY13 Var. Revenues (Like-to-Like) USD.Mn. 811.30 687.90 18% EBITDA (Like-to-Like) Rs.Bn 10.08 8.02 26% PAT Rs.Bn 6.55 6.29 4% Manpower (excl. PES) Nos 17,654 16,013 10% Product Engineering Services (PES) transferred to Tech. Ser
Slide 28: L&T Finance Holdings
L&T Finance Holdings % % Q4 FY14 Q4 FY13 ` Billion FY14 FY13 Change Change Lending Businesses (Retail & Mid-Market, Wholesale, Housing Finance) 81.34 74.39 9% Disbursements 259.59 229.95 13% 5.61% 5.61% 0.00% NIM (%) 5.47% 5.34% 0.13% 400.80 333.10 20% Loans and Advances 400.80 333.10 20% 3.18% 2.03
Slide 29: Hydrocarbon (Consolidated)
Hydrocarbon (Consolidated) % ` Billion FY14 FY13 Change Order Inflows 97.78 71.58 37% Net Segment Revenue 100.11 102.34 -2% --- International 62.29 55.29 13% EBITDA 2.98 11.84 -75% EBITDA Margins 3.0% 11.6% -8.6% Capital Employed 39.03 22.00 77% Growth in order inflows achieved despite a tough and c
Slide 30: Concessions Business Portfolio – 27 SPVs
Concessions Business Portfolio – 27 SPVs Roads and Bridges: Portfolio: 17 projects (1764 Km); 11 Operational Project Cost: `184 Bn Power: Portfolio: 5 projects (2270 MW); 1 Operational Project Cost: `176 Bn Ports: Portfolio: 3 projects (45 MTPA) - Operational Project Cost: `57 Bn Metros: Portfolio:
Slide 31: Presentation Outline
Presentation Outline Standalone Performance Segment Analysis Group Performance Sectoral Opportunities & Outlook 31
Slide 32: Infrastructure Segment
Infrastructure Segment Presence : Roads and Runways, Tunnels & Spl. Bridges, Ports, Airports, Railways, Metro Rail, Residential & Commercial Buildings, Factories, Water Infrastructure, Solar, Hydro & Nuclear Power, Power T&D – Transmission lines & substation projects Opportunities: Transportation
Slide 33: Power Segment
Power Segment Presence : EPC Projects in Power Capacity addition (Coal & Gas), Coal based Power Plant Equipment (Boilers, Turbines, ESP, Piping and other Power Auxiliaries) Opportunities: Base level capacity addition in Coal based Power Plants Challenges: Fuel supply Land acquisition Environ
Slide 34: Metallurgical & Material Handling Segment
Metallurgical & Material Handling Segment Presence : Construction capabilities for ferrous and non-ferrous plants, bulk material handling equipment and systems addressing mining, steel, power, railways and ports sectors Opportunities: Capacity addition in ferrous metals sector both from private an
Slide 35: Hydrocarbon Segment
Hydrocarbon Segment Presence : Offshore Platforms, Subsea pipelines, Floating Systems, Jackup Rigs, Subsea installations, Onshore Oil & Gas installations, Refineries, Petrochemical and Fertiliser Plants (EPC), Onshore pipelines, Regasification Terminals Opportunities: Promising International prosp
Slide 36: Outlook
Outlook Macro Economic Situation Infrastructure Fiscal Policy & Industrial Spends Domestic What & Global Impacts Monetary Policy Competition us Organisational Political Stability Preparedness Global Economy 36
Slide 37: Thank You
Thank You LARSEN & TOUBRO
Slide 38: Annexure 1: Details of Other Income
Annexure 1: Details of Other Income % Q4 FY14 Q4 FY13 ` Billion FY14 FY13 % Change Change 1.16 0.89 30% Interest Income 4.95 5.32 -7% 0.88 0.92 -4% Income on Investments 2.00 2.54 -21% 1.96 1.36 44% Dividend from S&A Companies 8.65 5.85 48% 0.95 0.72 31% Miscellaneous Income 3.21 5.16 -38% 4.95 3.89
Slide 39: Annexure 2: Consolidated P/L Summary
Annexure 2: Consolidated P/L Summary L&T L&T Group Devl. Fin. L&T & ` Billion IT & TS % FY14 Projects Services Others FY14 FY13 Change 565.98 Income from Operations 17.04 63.53 51.71 719.00 851.28 744.98 14% 66.67 EBITDA 8.03 14.25 5.99 79.28 107.54 99.29 8% 11.8% EBITDA Margins 47.1% 22.4% 11.6% 11
Slide 40: Annexure 3: Consolidated Balance Sheet
Annexure 3: Consolidated Balance Sheet L&T L&T Group Devl. Fin. L&T & ` Billion IT & TS Projects Services Others Mar-14 Mar-14 Mar-13 Inc/(Dec) Net Worth: Gross 87.97 45.88 24.84 307.10 336.62 377.12 338.60 38.52 Elimination - - - (88.68) - Minority Interest 0.84 24.02 0.00 6.92 31.79 26.53 5.26 114
Slide 41: Annexure 4: Consolidated Cash Flow
Annexure 4: Consolidated Cash Flow FY14 FY13 ` Billion Devl. Fin. L&T & IT&TS L&T Group L&T Group Projects Services Other S&A Operating Profit 8.31 6.33 14.15 83.03 111.82 103.39 Changes in Working Capital (28.95) (1.48) (2.27) (54.87) (87.57) (62.80) Direct Taxes (Paid) / Refund - Net (0.26) (3.43)