Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — H1 FY2010 Earnings Presentation
23 slides from Larsen & Toubro's earnings presentation, Oct 22, 2009
Slide 1: Larsen & Toubro Limited
LARSEN & TOUBRO LIMITED
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 H1 FY10 Performance Summary y Segment Analysis Performance of Key Subsidiaries Outlook Oct 22, 2009 3
Slide 4: H1 FY10 Performance Summary
H1 FY10 Performance Summary Oct 22, 2009 4
Slide 5: Performance Highlights – H1 FY10
Performance Highlights – H1 FY10 Order Inflow Growth 13% Order Book Growth 30% E&C Segment Revenue Growth 14% Sales Growth (Excluding RMC) 8% EBITDA Margin 10.9% Oct 22, 2009 5
Slide 6: Order Inflow & Order Book – H1 FY10
Order Inflow & Order Book – H1 FY10 Sector-wise Break-up Order Inflow: 26% 26% 32% 8% 8% Rs. 279.36 Bn Order Book: Rs. 816.23 Bn 38% 15% 26% 15% 6% 0% 20% 40% 60% 80% 100% Infrastructure Hydrocarbons Power Process Others 60% Order Inflow 51% 44% Geographical Break-up 38% Customer Profile Order Inflo
Slide 7: Performance Summary – Top line
Performance Summary – Top line % % Q2 FY10 Q2 FY09 Rs. Billion H1 FY10 H1 FY09 FY 09 Change Change 183.65 124.53 47% Order Inflows 279.36 246.87 13% 516.21 Order Book 816 23 816.23 629 56 629.56 30% 703 19 703.19 78.66 76.82 2% Net Sales 152.29 145.84 4% 336.46 0.53 0.43 Other Operational Income 0.9
Slide 8: Performance Summary – Operational Costs
Performance Summary – Operational Costs Q2 FY10 Q2 FY09 H1 FY10 H1 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 60.30 76.1% 60.28 78.0% Manf., Cons. & Opex (MCO) 117.52 76.6% 115.41 78.7% 7.09 9.0% 6.04 7.8%
Slide 9: Performance Summary - Profitability
Performance Summary - Profitability % Q2 FY10 Q2 FY09 % Change Rs. Billion H1 FY10 H1 FY09 FY 09 Change 8.37 7.12 18% EBITDA 16.69 14.47 15% 39.35 10 6% 10.6% 9 2% 9.2% EBITDA Margins 10 9% 10.9% 9 9% 9.9% 11 6% 11.6% (1.31) (0.81) 61% Interest Expenses (2.40) (1.31) 83% (4.28) (1.00) (0.73) 37% Dep
Slide 10: Balance Sheet
Balance Sheet Increase / Rs. Billion Sep-09 Mar-09 (Decrease) Net Worth 148.27 124.59 23.68 Loan Funds 69.43 65.56 3.87 Deferred Tax Liabilities 0.60 0.49 0.11 (Net) Total Sources 218.30 190.64 27.66 Net Fixed Asset 56.21 51.95 4.26 Current Investments 55.77 48.80 6.97 Invt./ICDs/Loans & 54.17 51.33
Slide 11: Segment Analysis
Segment Analysis Oct 22, 2009 11
Slide 12: Segmental Break-up – H1 FY10
Segmental Break-up – H1 FY10 Net Revenues Machinery & IIndustrial d t i l Others Products 1.1% Engineering 6.0% (5.0%) & Electrical & (8.7%) Construction Electronics 85.2% 7.7% 7 7% (78 0%) (78.0%) (8.3%) EBITDA Machinery & I d Industrial i l Others Oth Products 1.3% 10.2% (3.2%) Engineering (16.4%)
Slide 13: 'Engineering & Construction' Segment
‘Engineering & Construction’ Segment % Q2 FY10 Q2 FY09 % Change Rs. Billion H1 FY10 H1 FY09 FY 09 Change 170.04 104.34 63% Total Order Inflows 253.77 209.50 21% 454.18 16 19 16.19 22 66 22.66 --- Exports 20 57 20.57 36 01 36.01 65 75 65.75 Total Order Book 798.57 609.31 31% 687.53 --- Exports 97.92
Slide 14: 'Electrical & Electronics' Segment
‘Electrical & Electronics’ Segment % Q2 FY10 Q2 FY09 % Change Rs. Billion H1 FY10 H1 FY09 FY 09 Change 6.59 7.02 -6% Total Net Revenues 11.84 12.23 -3% 25.07 0.78 1.20 ---Exports 1.29 1.88 4.29 1.13 0.92 23% EBITDA 1.87 1.65 13% 3.39 17.1% 13.1% EBITDA Margins 15.8% 13.5% 13.5% Net Segment Assets 11
Slide 15: 'Machinery & Industrial Products' Segment
‘Machinery & Industrial Products’ Segment % Q2 FY10 Q2 FY09 % Change Rs. Billion H1 FY10 H1 FY09 FY 09 Change 4.92 6.64 -26% Total Net Revenues 9.12 12.74 -28% 23.97 0 55 0.55 1 49 1.49 ---Exports E t 1 13 1.13 3 06 3.06 5 87 5.87 0.97 1.41 -32% EBITDA 1.96 2.92 -33% 4.86 19.7% 21.3% EBITDA Margins
Slide 16: 'Others' Segment
‘Others’ Segment % Q2 FY10 Q2 FY09 % Change Rs. Billion H1 FY10 H1 FY09 FY 09 Change 0.92 3.83 -76% Total Net Revenues 1.69 7.35 -77% 10.39 0.85 0.95 ---Exports 1.55 1.68 3.63 0.19 0.28 -30% EBITDA 0.25 0.57 -56% 0.67 21.0% 7.3% EBITDA Margins 15.0% 7.8% 6.5% Net Segment Assets 1.68 4.11 -59% 1.88 ◊
Slide 17: Performance of Key Subsidiaries
Performance of Key Subsidiaries Oct 22, 2009 17
Slide 18: Performance of Key Subsidiaries
Performance of Key Subsidiaries Total Revenues PAT Rs. Billion H1 FY10 H1 FY09 H1 FY10 H1 FY09 L&T Infotech Limited (Consolidated) 9.40 10.18 1.18 1.42 L&T Finance Limited 4.27 3.59 0.57 0.43 L&T Infrastructure Finance Limited 1.99 1.52 0.50 0.43 ◊ L&T Infotech ◊ Revenue contraction due to slowdown
Slide 19: Outlook
Outlook Oct 22, 2009 19
Slide 20: Outlook
Outlook ¾ Some Green shoots of recovery are visible ¾ Uptick in infrastructure spends by Government ¾ Heightened interest levels, both public and private, in d development l t off power sector t ¾ Firm Oil prices – Enables increased investment in hydrocarbon sector ¾ Abundant gas availability provid
Slide 21: Thank You
THANK YOU Oct 22, 2009 21
Slide 22: Annexure 1 - Major Orders Booked During Q2 FY10
Annexure 1 - Major Orders Booked During Q2 FY10 Description Rs Bn ---- Domestic MHN PGC Modules, Process Platform and Living Quarters Project from ONGC 53.92 Setting up Gas based power plant at Vemagiri for GMR Energy Limited 20.52 Steam turbine generators package for 2 x 660 MW Jaypee Nigrie Power
Slide 23: Annexure 2 - Details of Other Income
Annexure 2 - Details of Other Income Rs. Million H1 FY10 H1 FY09 Recovery from S&A / JV Companies 216 232 Technical Fees / IJV Profits 122 32 Others 644 569 Total - Other Operational Income 982 833 Interest Income 652 255 Dividend from S&A Companies 190 471 Income from Other Investments 1115 1210 Pr