Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — 9M FY2009 Earnings Presentation
27 slides from Larsen & Toubro's earnings presentation, Jan 30, 2009
Slide 1: Analyst Presentation 9M 09
ANALYST PRESENTATION 9M 09 1 January 30, 2009
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 9M 09 Performance Summary Segment Analysis Performance of Key Subsidiaries Outlook 3 January 30, 2009
Slide 4: 9M Performance Summary
© 9M 09 PERFORMANCE SUMMARY January 30, 2009
Slide 5: Performance Highlights: 9M 09
Performance Highlights: 9M 09 30% Growth in Order Inflows 41% Growth in Sales Rs. 688 Bn Order Book 9.2% EBITDA Margins 13.8% Net Working Capital to Sales Rs. 13.6 Bn Investments in Capex 16% Growth in Manpower 5 January 30, 2009
Slide 6: Sector wise Order Inflows & Order Book: 9M 09
Sector wise Order Inflows & Order Book: 9M 09 44% 50 40 16% 21% 30 11% 20 8% 10 16% 39% 17% 18% Rs. 391 Bn 0 10% Rs. 688 Bn Order Book Order Inflows 6 January 30, 2009
Slide 7: Geographical Break-up: 9M 09
Geographical Break-up: 9M 09 Domestic Middle East Other Exports 7 January 30, 2009
Slide 8: Order Book – Customer Profile
Order Book – Customer Profile 8 January 30, 2009
Slide 9: Performance Summary - Top line
Performance Summary - Top line % % Q3 09 Q3 08 Change Rs. Billion 9M 09 9M 08 Change FY 08 146.20 130.19 12% Order Inflows 391.04 300.45 30% 420.19 Order Book 688.01 495.75 39% 526.83 85.94 63.83 35% Net Sales 231.78 163.88 41% 248.55 0.22 0.05 Other Operational Income 0.30 0.08 0.23 3.07 1.51 Other
Slide 10: Performance Summary - Operational Costs
Performance Summary - Operational Costs Q3 09 Q308 % to Total % to Total Particulars Rs Bn Income* Rs Bn Income* Comments Manufacturing, 1) Higher input costs Constructing & 68.48 79.5% 50.21 78.6% 2) Mix skewed towards project sales Operating Expenses 1) Increase in manpower strength from 32345 to
Slide 11: Performance Summary - Profitability
Performance Summary - Profitability % % Q3 09 Q3 08 Rs. Billion 9M 09 9M 08 FY 08 Change Change 7.80 6.40 22% EBITDA 21.39 17.00 26% 28.38 9.1% 10.0% EBITDA Margins 9.2% 10.4% 11.4% 0.98 0.44 122% Interest Expenses 2.05 0.73 181% 1.23 0.78 0.53 48% Depreciation 2.17 1.43 51% 2.12 3.07 2.13 Provision
Slide 12: Balance Sheet
Balance Sheet Inc / Mar-08 Rs. Billion Dec-08 Dec-07 (Dec) 95.52 Net W orth 121.21 90.39 30.82 35.84 Loan Funds 64.03 24.89 39.14 0.61 Deferred Tax Liabilities 0.57 0.36 0.21 131.97 Total Sources 185.81 115.64 70.17 36.45 Net Fixed Asset 46.08 30.59 15.49 42.83 Current Investments 39.81 22.22 17.59
Slide 13: Segment Analysis
SEGMENT ANALYSIS 13 January 30, 2009
Slide 14: Segment wise Break-up – Net Revenues
Segment wise Break-up – Net Revenues 9M 09 4% 8% Engineering & 8% Construction Electrical & Electronics Machinery & Industrial Products 80% Others 5% 9M 08 10% 10% 75% 14 January 30, 2009
Slide 15: Segment wise Break-up - EBITDA
Segment wise Break-up - EBITDA 9M 09 3% 13% 8% Engineering & Construction Electrical & Electronics 76% Machinery & Industrial 9M 08 Products 3% Others 15% 14% 68% 15 January 30, 2009
Slide 16: ‘Engineering & Construction’ Segment
‘Engineering & Construction’ Segment % % Q3 09 Q3 08 Rs. Billion 9M 09 9M 08 FY 08 Change Change 133.79 114.62 17% Total Order Inflows 341.26 251.83 36% 353.92 4.64 3.15 47% ----Exports 40.65 30.93 31% 59.50 Total Order Book 670.29 476.06 41% 509.32 ----Exports 97.77 64.03 53% 82.10 73.42 48.97 50%
Slide 17: ‘Electrical & Electronics’ Segment
‘Electrical & Electronics’ Segment % % Q3 09 Q3 08 Rs. Billion 9M 09 9M 08 FY 08 Change Change 5.88 5.75 2% Total Net Revenues 18.09 17.03 6% 24.21 1.18 0.64 85% ----Exports 3.06 1.76 73% 2.89 0.72 1.01 -28% EBITDA 2.34 2.99 -22% 4.12 12.3% 17.5% EBITDA Margins 12.9% 17.6% 17.0% Net Segment Assets 1
Slide 18: ‘Machinery & Industrial Products’ Segment
‘Machinery & Industrial Products’ Segment % % Q3 09 Q3 08 Rs. Billion 9M 09 9M 08 FY 08 Change Change 5.14 5.67 -9% Total Net Revenues 17.83 15.48 15% 23.28 1.21 1.07 14% ----Exports 4.27 3.09 38% 4.84 0.70 1.18 -41% EBITDA 3.59 3.00 20% 4.41 13.5% 20.8% EBITDA Margins 20.1% 19.4% 19.0% Net Segment
Slide 19: ‘Others’ Segment
‘Others’ Segment % % Q3 09 Q3 08 Rs. Billion 9M 09 9M 08 FY 08 Change Change Ready Mix Concrete 0.61 2.84 Net Revenues 6.06 6.29 8.95 (0.09) 0.16 EBITDA 0.01 0.43 0.91 Others 1.10 0.64 73% Total Net Revenues 3.01 1.88 60% 2.83 1.03 0.48 116% ----Exports 2.71 1.28 112% 1.73 0.24 0.06 EBITDA 0.70 0.15
Slide 20: Performance of Key Subsidiaries
PERFORMANCE OF KEY SUBSIDIARIES 20 January 30, 2009
Slide 21: L&T Infotech Limited
L&T Infotech Limited FY 08 Rs. Billion 9M 09 9M 08 % Change 15.82 Total Revenues 13.68 11.55 18% 2.11 PAT 2.00 1.38 45% 13.3% PAT / Total Revenues 14.6% 11.9% Revenue Split by Verticals ` Manpower: 9412 ` Revenue growth in USD: 7% YoY 21 January 30, 2009
Slide 22: Financial Services
Financial Services Total Revenues Profit After Tax Rs Billion 9M 09 9M 08 % Change 9M 09 9M 08 % Change L&T Finance 5.76 3.92 47% 0.55 0.76 -27% L&T Infrastructure Finance 2.26 0.65 246% 0.57 0.32 81% L&T Finance: ` Total Assets: Rs. 56 Bn (Dec. 07: Rs. 42 Bn) ` Net Worth: Rs. 7.8 Bn (Dec. 07: Rs. 6
Slide 23: Outlook
OUTLOOK 23 Januar y 30, 2009
Slide 24: Outlook
Outlook ` Less dependence on ` Global Slowdown exports ` Liquidity Crisis ` Govt. Stimulus ` Deferral of projects measures ` Decline in Inflation & Interest rates Order Book provides Revenue visibility Healthy Balance Sheet Growth initiatives on track Poised for sustained growth 24 January 30,
Slide 25: January 30, 2009
25 January 30, 2009
Slide 26: Annexure 1: Major Order Inflows during Q3 09
Annexure 1: Major Order Inflows during Q3 09 Description Rs Bn ‘Ahmedabad-Viramgam-Maliya’ Road Project in Gujarat 13.95 Monorail Project in Mumbai from MMRDA 13.63 ‘Halol-Godhra-Shamalji’ Road Project in Gujarat 12.20 IT Park for Nesco Limited at Mumbai 11.00 ‘Rajkot-Jamnagar-Vadinar’ Road Project
Slide 27: Annexure 2: Details of Other Income
Annexure 2: Details of Other Income Rs. Million 9M 09 9M 08 Other Operational Income 304 80 Interest Income 1,038 609 Dividend from S&A Companies / Trade Investments 637 116 Income from Other Investments 1,514 722 Profit on sale of investments 1,226 759 Profit on sale of fixed assets 69 37 Recovery