Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — H1 FY2005 Earnings Presentation
26 slides from Larsen & Toubro's earnings presentation, Oct 25, 2004
Slide 1: Larsen & Toubro Limited Performance Review
LARSEN & TO U B R O LIMITED Performance Review Half-year ending Septe mber, 30 2004 October 25, 2004 1
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: Performance highlights
Performance highlights • Sales for H1’05 increases 52% over H1’04 • PBDIT improves 20% (pre-exceptional) • PAT improve 15% (pre-exceptional) • Special Dividend of Rs.10 per share declared • Outlook for the year positive with: – E&C order booking expected to grow 20% – E&C revenues to grow 30% – E&C
Slide 4: Order Booking and Sales
Order Booking and Sales % Q2 05 Q2 04 Rs. Billion H105 H104 Change FY04 28.37 35.09 Order Booking* 54.69 58.90 -7% 132.38 30.03 21.04 Sales 56.92 37.39 52% 98.07 Other Income 0.77 0.51 - Recurring/Operating 0.67 0.96 -30% 2.58 3.54 0.84 - Others 3.49 1.07 226% 1.39 34.34 22.39 Total Revenue 61.08 39
Slide 5: Details of Other Income
Details of Other Income FY04 Rs. Million H1'05 H1'04 230 Hire Income from plant & machinery / lease rental 88 96 447 RMC freight and pumping charges 316 166 210 Commercial leadership fees from IJVs 67 101 671 Exchange fluctuation on trade assets/liabilities (495) 268 652 Miscellaneous Income 356 245
Slide 6: Net Income
Net Income % Q2 05 Q2 04 Rs. Billion H105 H104 FY04 change 1.72 1.45 PBDIT (Pre exceptional) 3.19 2.66 20% 8.91 5.6% 6.5% PBDIT/ Revenue (pre exceptional) 5.6% 6.7% 8.7% 0.13 0.05 Interest 0.23 0.14 0.37 0.22 0.22 Depreciation 0.43 0.43 0.85 1.37 1.18 PBT 2.53 2.09 21% 7.69 0.53 0.44 Tax - Current 0
Slide 7: Segment-wise split of Income
Segment-wise split of Income Busine ss Se gme nts Rs. Billion E&C Ele c. O the rs C orp Total T otal Sales 48.29 5.51 3.72 57.52 Inter-segment Sales - 0.23 0.37 0.60 Customer Sales 48.29 5.28 3.35 56.92 Excise Duty 0.38 0.45 0.05 0.88 Ne t Sale s 47.91 4.83 3.30 - 56.04 Other Income 0.08 - 0.32 4.22
Slide 8: Segmental Review
Segmental Review 8
Slide 9: Segmental Revenues
Segmental Revenues H1'05 H1'04 Others Others Elect 7% 8% 10% Elect. 12% E&C 83% E&C 80% 9
Slide 10: Segmental EBITDA
Segmental EBITDA H1'05 H1'04 Others Others 14% 10% Electrical Electrical 19% 19% E&C 67% E&C 71% 10
Slide 11: Engineering & Construction
Engineering & Construction 11
Slide 12: Engineering & Construction
Engineering & Construction Q2 05 Q2 04 Rs. Billion H1 05 H1 04 % c ha nge FY 04 Order Booking : 19.75 20.85 Dom estic 34.77 38.69 (10%) 97.52 4.25 10.83 Export 10.96 12.66 (13%) 18.81 24.00 31.68 Total 45.73 51.35 (11%) 116.33 Gross Sales: 19.53 14.71 Dom estic 38.05 25.96 47% 68.95 6.03 2.48 Export
Slide 13: E&C – Major Domestic Orders in Q2
E&C – Major Domestic Orders in Q2 Rs. Million Civil works Systems for construction of Airport Terminal, Building, Runway and other works for Bangalore International Airport 5000 New excavation and lining of Polavaram right main canal for Department of Irrigation, Government of Andhra Pradesh 1800 Co
Slide 14: E&C – Major International Orders in Q2
E&C – Major International Orders in Q2 Rs. Million Engineering, procurement , construction and commissioning of gas reinjection facility at Abu Dhabi for Bunduq Company Limited 2410 Manufacture and supply of 2 sets of Coal Gasifiers to China for 1890 Shenhua International Limited Manufacture and sup
Slide 15: Sector-wise Order Backlog
Sector-wise Order Backlog 100% 13 9 17 17 18 80% 37 48 30 46 35 35 60% 17 14 10 12 40% 19 21 25 21 20 19 10 20% 8 17 17 17 19 16 8 5 0% '99-00 '00-01 '01-02 '02-03 '03-04 'H1-05 Process Oil & Gas Power Infrastructure Others 15
Slide 16: Engineering & Construction
Engineering & Construction Q2 05 Q2 04 Rs. Billion H1' 05 H1'04 % change FY 04 25.60 17.31 Total Revenues (1) 48.37 30.42 59% 82.52 0.15 0.26 Excise Duty 0.38 0.37 1.54 25.45 17.05 Net Revenues 47.99 30.05 80.98 0.99 0.91 EBITDA (2) 2.32 1.76 32% 6.69 3.9% 5.3% EBITDA/Tot. Rev. 4.8% 5.8% 8.1% 0.85 0
Slide 17: Electricals & Electronics
Electricals & Electronics 17
Slide 18: Electrical & Electronics
Electrical & Electronics % Q2 05 Q2 04 Rs. Billion H1'05 H1'04 FY'04 change 2.63 2.16 Domestic Sales 4.92 4.02 22% 8.96 0.19 0.22 Exports 0.36 0.27 33% 0.62 2.82 2.38 Total Revenues (1) 5.28 4.29 23% 9.58 0.24 0.18 Excise Duty 0.45 0.34 0.76 2.58 2.20 Net Revenues 4.83 3.95 22% 8.82 0.42 0.27 EBITDA
Slide 19: Other Businesses
Other Businesses 19
Slide 20: Diversified Businesses - Others Segment
Diversified Businesses- “Others” Segment % Q2 05 Q2 04 Rs. Billion H1'05 H1'04 FY'04 change 1.63 1.37 Domestic Sales 3.29 2.73 21% 6.17 0.02 0.06 Exports 0.05 0.13 -62% 0.30 0.17 0.08 Other Income 0.32 0.12 167% 0.38 1.82 1.51 Total Revenues (1) 3.66 2.98 23% 6.85 0.02 0.03 Excise Duty 0.05 0.07 0.1
Slide 21: Performance of Subsidiaries
Performance of Subsidiaries 21
Slide 22: Larsen & Toubro Infotech Limited
Larsen & Toubro Infotech Limited FY 04 (Rs. Billion) H1'05 H1'04 % Change 3.78 Total Revenues 2.62 1.54 70% 0.43 Operating Profit (PBDIT) 0.36 0.09 320% 11.4% % to Sales 13.6% 5.5% 0.27 Depreciation/Amortisation 0.12 0.12 0.03 Financing Costs 0.05 0.02 0.13 PBT 0.18 (0.06) 0.12 PAT 0.16 (0.06) 3.3%
Slide 23: Summary Performance of SPVs
Summary Performance of SPVs H1'04 Rs. Millions H1'05 % change 1584 Total Income 1614 2% 1428 PBDIT 1441 1% 405 PBT 510 26% 248 PAT 393 58% 23
Slide 24: Outlook
Outlook 24
Slide 25: Revenue and earnings for FY '05
Revenue and earnings for FY ‘05 • E&C Order booking growth expected around 20% • Overall Revenue growth of 25%+ – E&C revenues to grow by 30% – EBG revenues by more than 20% • Margins to improve substantially in the second half for E&C segment • EBG margins likely to be stable – Could show an improv
Slide 26: Thank You!
Thank You! 26