Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q1 FY2017 Earnings Presentation
29 slides from Larsen & Toubro's earnings presentation, Jul 29, 2016
Slide 1: Analyst Presentation – Q1 FY17
Larsen & Toubro Analyst Presentation – Q1 FY17 July 29, 2016
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 Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries Outlook 3
Slide 4: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries Outlook 4
Slide 5: Performance Highlights
Performance Highlights 14% Order Inflow 8% Order Book 9% Revenue 16% EBITDA 46% PAT Financial Statements prepared in accordance with new Accounting Standards (IND AS) 5 5
Slide 6: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries Outlook 6
Slide 7: Group level Order Inflow & Order Book
Group level Order Inflow & Order Book Amount in ` Bn Order Inflow Order Book 2574 297 2375 260 620 756 132 8% 79 14% 1755 1819 181 165 Q1 FY16 Q1 FY17 Q1 FY16 Q1 FY17 Domestic International Domestic International Order Inflow growth mainly from Hydrocarbon, Water, and Heavy Civil verticals Internati
Slide 8: Group Performance – Sales & Costs
Group Performance – Sales & Costs ` Billion Q1 FY16 Q1 FY17 % Change Revenue from Operations 200.48 218.74 9% International Revenue 64.49 76.22 18% % of Revenue 32% 35% 3% Mfg, Cons. & Opex (MCO) 127.10 136.53 7% Finance Cost of Fin. Services and 11.91 13.22 11% Fin. Lease Activities Staff Costs 31.
Slide 9: Group Performance Summary - Profitability
Group Performance Summary - Profitability ` Billion Q1 FY16 Q1 FY17 % Change EBITDA 16.41 19.05 16% EBITDA Margin 8.2% 8.7% 0.5% Interest Expenses (3.89) (3.37) -13% Depreciation (4.66) (4.65) 0% Other Income 2.83 3.02 7% Provision for Taxes (4.28) (5.49) 28% Profit after Tax 6.41 8.56 34% Share in
Slide 10: Reconciliation of Net PAT Q1 FY 2015-16
Reconciliation of Net PAT Q1 FY 2015-16 Adjustments ` Billion ` Billion Net Profit After Tax as per previous IGAAP 6.06 Provision for Expected Credit Loss (1.69) Provision for Employee Benefits based on constructive (0.99) obligations Gain on fair valuation of investments 0.62 Increase in borrowing
Slide 11: Components of Other Comprehensive Income (OCI)
Components of Other Comprehensive Income (OCI) ₹ Billion Q1FY16 Q1FY17 Changes arising out of re-measurement of defined 0.13 (0.02) benefit plans for employees MTM of investment in Debt instruments (0.52) (0.15) Changes in Foreign Currency Translation Reserve 0.44 0.05 MTM of Off-Balance Sheet Hedge
Slide 12: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries Outlook 12
Slide 13: Segment Composition
Segment Composition Electrical & Infrastructure Power Heavy Engineering Automation Buildings & Factories Process Plant Electrical Standard EPC – Coal & Gas Equipment Products Transportation Infra Heavy Civil Infra Thermal Power Plant Nuclear Power Plant Electrical Systems & Water & Effluent Construc
Slide 14: Segmental Breakup of Orders – Q1 FY17
Segmental Breakup of Orders – Q1 FY17 Hydrocarbon 27% Services E&A 19% 4% HE 4% Others 5% Power 1% Power HE E&A 7% 3% 1% Infrastructure 40% Order Inflow Hydrocarbon ₹ 297 Bn 8% Others Infrastructure 7% 74% Order Book ₹ 2574 Bn 14
Slide 15: Revenue Breakup – Q1 FY17
Revenue Breakup – Q1 FY17 Segmental Breakup Hydrocarbon IT & TS E&A 10% 11% Fin. Services 4% HE 10% 3% Devl. Proj. Power 5% 8% Others 7% Geographical breakup Infrastructure 42% 35% 65% Domestic International 15
Slide 16: Infrastructure Segment
Infrastructure Segment Amount in ` Bn Net Revenues & Margin Execution progress in International Business drives revenue growth Margin increase due to commodity prices and execution efficiency 16
Slide 17: Power Segment
Power Segment Amount in ` Bn Net Revenues & Margin Sharp growth in revenues resulting from greater execution progress in domestic and international jobs Margin improvement due to brisk execution 17
Slide 18: Heavy Engineering Segment
Heavy Engineering Segment Amount in ` Bn Net Revenues & Margin Modest Revenue growth on low opening Order Book in PPN business Margins reflect profitable execution 18
Slide 19: Electrical & Automation (E&A) Segment
Electrical & Automation (E&A) Segment Amount in ` Bn Net Revenues & Margin Growth in Product Business offset by decline in Project Business Margin improvement due to improved performance by Standard Products and Medium Voltage Switchgear 19
Slide 20: Hydrocarbon Segment
Hydrocarbon Segment Amount in ` Bn Net Revenues & Margin Revenue level represents delayed replenishment of Order Book Close out of last of legacy projects impacting margins 20
Slide 21: IT & Technology Services Segment
IT & Technology Services Segment Amount in ` Bn Net Revenues & Margin Revenue growth contributed by Insurance, Auto & Aero, Transportation, and Industrial Products sectors Focus on client mining Margin improvement due to better manpower utilization, favourable currency movement, and operational exce
Slide 22: Others Segment
Others Segment Amount in ` Bn Net Revenues & Margin Weak industrial demand and low capacity utilization impact revenues Tapering of Realty revenues on completion of current phase Margin impacted by inventory write down in Shipbuilding 22
Slide 23: Developmental Projects Segment
Developmental Projects Segment Amount in ` Bn Revenues EBITDA Revenue growth mainly realised through higher PLF in Nabha Power Project Margin improvement largely arising from Kattupalli Port 23
Slide 24: Concessions Business Portfolio – 21 SPVs
Concessions Business Portfolio – 21 SPVs Roads and Bridges: Portfolio: 15 projects (1661 Km); 13 Operational Project Cost: `161 Bn Power (Excl. Projects under DPR): Portfolio: 2 projects (1499 MW); 1 Operational Project Cost: `112 Bn Ports: Portfolio: 2 projects (18 MTPA) - Operational Project Cost:
Slide 25: L&T Finance Holdings (I-GAAP)
L&T Finance Holdings (I-GAAP) ` Billion Q1 FY16 Q1 FY17 % Change Networth 85.28 86.17 1% (Incl. Pref.Cap and Warrants) Borrowings 441.37 532.01 21% Loans and Advances 492.18 577.36 17% Mutual Fund Average AUM 222.13 284.04 28% Gross NPA (%) - 120 DPD 5.45% 4.58% -0.87% Net NPA (%) - 120 DPD 4.43% 3.
Slide 26: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries Outlook 26
Slide 27: Outlook
Outlook ENGINEERING | MANUFACTURING | CONSTRUCTION | TECHNOLOGY | FIN SERVICES @ LARSEN & TOUBRO
Slide 28: Thank You
Thank You LARSEN & TOUBRO
Slide 29: Annexure-1: Share in Profit/(Loss) of JVs/Associates
Annexure-1: Share in Profit/(Loss) of JVs/Associates ` Billion Jun-15 Jun-16 MHPS JVs (0.12) 0.26 IDPL & Subs. (1.09) (1.60) Others (0.75) (0.40) Total (1.96) (1.74) 29