Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — Q3 FY2015 Earnings Presentation
32 slides from Larsen & Toubro's earnings presentation, Feb 9, 2015
Slide 1: Analyst Presentation – Q3 / 9M FY15
Analyst Presentation – Q3 / 9M FY15 Feb 9, 2015
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’ Performance Outlook 3
Slide 4: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries’ Performance Outlook For FY 2014-15 4
Slide 5: Group Performance Highlights – Q3 / 9M FY15
Group Performance Highlights – Q3 / 9M FY15 Q3 9M 19% Order Inflow 16% 10% Revenues 10% 10% EBITDA 10% 9% Profit After Tax 31% 17% Order Book 17% 5
Slide 6: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries’ Performance Outlook For FY 2014-15 6
Slide 7: Group level Order Inflow & Order Book
Group level Order Inflow & Order Book Amount in ` Bn Order Inflow Order Book Geographical Breakup 1078 2258 930 16% 17% 18% 25% 346 1926 290 Q3 FY15 Q3 398 82% 75% 340 Q2 Q1 300 334 9M FY14 9M FY15 9M FY14 9M FY15 Order Inflow Order Book Domestic International Strong growth in Q3 order receipts main
Slide 8: Group Performance – Sales & Costs
Group Performance – Sales & Costs % Q3 FY15 Q3 FY14 % Change ` Billion 9M FY15 9M FY14 FY14 Change Net Sales / Revenue from 238.48 217.32 10% 639.82 581.04 10% 851.28 Operations 64.00 58.54 9% ----International Sales 178.04 174.77 2% 240.04 27% 27% - % of Total Sales 28% 30% -2% 28% 177.96 160.64 11
Slide 9: Performance Summary – Operational Costs & Profitability
Performance Summary – Operational Costs & Profitability Subcontracting charges, Q3 FY15 17.3% Material cost, (20.5%) 39.7% (37.0%) Other Opex, 17.6% (16.4%) Staff Costs, 8.1% (7.9%) EBITDA, Sales, adm. & other Exp., 12.1% 9M FY15 Subcontracting Material cost, 5.2% (12.1%) charges, 36.2% (6.1%) 17.6%
Slide 10: Group Performance Summary Extracts
Group Performance Summary Extracts % Q3 FY15 Q3 FY14 % Change ` Billion 9M FY15 9M FY14 FY14 Change 28.90 26.33 10% EBITDA 77.39 70.09 10% 107.33 12.1% 12.1% - EBITDA Margin 12.1% 12.1% - 12.6% (9.20) (8.84) 4% Interest Expenses (23.90) (23.69) 1% (31.41) (6.79) (5.88) 16% Depreciation (20.35) (17.3
Slide 11: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries’ Performance Outlook For FY 2014-15 11
Slide 12: Segment Composition
Segment Composition Metallurgical & Electrical & Infrastructure Power Heavy Engineering Material Handling Automation Process Plant Electrical Standard Building & Factories EPC – Coal & Gas Ferrous Equipment Products Thermal Power Plant Nuclear Power Plant Electrical Systems & Transportation Infra No
Slide 13: Segmental Breakup of Orders – 9M FY15
Segmental Breakup of Orders – 9M FY15 MMH HE E&A 3% 4% 4% Hydrocarbon Power (2%) (4%) (4%) 9% 9% (10%) (1%) Services 13% (11%) Others 5% (6%) Power 10% MMH (8%) 5% HE E&A Infrastructure (7%) 4% 1% (4%) 53% (2%) (62%) Order Inflow Rs 1078 Bn Hydrocarbon 7% (6%) Others Infrastructure 2% 71% (3%) (70%)
Slide 14: Revenue Breakup – 9M FY15
Revenue Breakup – 9M FY15 Segmental Breakup E&A Hydrocarbon IT & TS HE 5% 8% 9% Fin. Services 4% 7% MMH 4% Devl. Proj. 7% Power Others 5% 7% Geographical breakup Infrastructure 28% 44% 72% Domestic International 14
Slide 15: Infrastructure Segment
Infrastructure Segment Amount in ` Bn Revenues & Margin Investment momentum yet to pick up strongly Revenue growth driven by in-line execution across all businesses Execution of large, long duration international orders starting to contribute to Revenue Comparative Margin reflective of job mix and o
Slide 16: Power Segment
Power Segment Revenues & Margin Amount in ` Bn Long bid-to-award timelines adversely affecting the power sector Slow progress on land, clearances and fuel availability Revenue decline due to delayed replenishment of Order Book Margin variation on account of lower level of operations 16
Slide 17: Metallurgical & Material Handling (MMH) Segment
Metallurgical & Material Handling (MMH) Segment Amount in ` Bn Revenues & Margin Business shrinkage due to current business conditions (iron ore mining ban, global over-capacity of steel, protracted procedures for clearances, depressed domestic industrial capex,etc) Revenue and Margin decline due to
Slide 18: Heavy Engineering Segment
Heavy Engineering Segment Amount in ` Bn Revenues & Margin Deferral of investments in Oil, Gas, Fertiliser and Nuclear Power sectors continues Global economic uncertainties dampening prospects Private sector participation in domestic Defence opportunities is yet to mature Revenue contraction due to
Slide 19: Electrical & Automation (E&A) Segment
Electrical & Automation (E&A) Segment Amount in ` Bn Revenues & Margin Modest revenue growth affected by lacklustre domestic industrial capex; revival closely linked to economic conditions Healthy margins aided by stable input costs, operational efficiencies and product mix 19
Slide 20: Hydrocarbon Segment
Hydrocarbon Segment Amount in ` Bn Revenues & Margin Falling oil prices leading to uncertainty in oil & gas capex across geographies Decline in revenues due to low opening order book and execution challenges in some Middle East projects Under-recovery, cost overruns and close out cost impact margins
Slide 21: IT & Technology Services Segment
IT & Technology Services Segment Amount in ` Bn Revenues & Margin Robust revenue growth driven mainly by North American markets Focus is on leveraging depth of relationship with existing customers while continuing efforts in new customer acquisitions Margin variation due to augmentation of front-end
Slide 22: Others Segment
Others Segment Amount in ` Bn Revenues & Margin Realty and Valves Businesses power segment growth EBITDA margin improvement through – Increase in Realty Business Reduction of Shipbuilding losses 22
Slide 23: Developmental Projects Segment
Developmental Projects Segment Amount in ` Bn Revenues & Margin Step up in revenues due to operationalization of 2x700 MW Coal fired power plant at Rajpura, Punjab (‘Nabha’) in early Q2 FY15 Traffic growth on operational road SPVs seen CPPIB invests the first tranche of Rs 10 Bn in IDPL 23
Slide 24: Concessions Business Portfolio – 26 SPVs
Concessions Business Portfolio – 26 SPVs Roads and Bridges: Portfolio: 17 projects (1764 Km); 12 Operational Project Cost: `184 Bn Power: Portfolio: 5 projects (2270 MW); 1 Operational Project Cost: `178 Bn Ports: Portfolio: 2 projects (18 MTPA) - Operational Project Cost: `21 Bn Metros: Portfolio:
Slide 25: L&T Finance Holdings
L&T Finance Holdings % 9M % Q3 FY15 Q3 FY14 ` Billion 9M FY14 FY14 Change FY15 Change 65 58 11% Networth (Excl. Pref. Cap.) 65 58 11% 58 396 324 22% Borrowings 396 324 22% 359 94 64 46% Disbursements 235 178 32% 260 452 378 20% Loans and Advances 452 378 20% 401 3.0% 2.9% 0.1% Gross NPA (%) 3.0% 2.9
Slide 26: Presentation Outline
Presentation Outline Group Performance Highlights Group Performance Summary Segment / Key Subsidiaries’ Performance Outlook For FY 2014-15 26
Slide 27: Outlook – Wide circles of influence
Outlook – Wide circles of influence 27
Slide 28: Thank You
Thank You LARSEN & TOUBRO
Slide 29: Annexure-1: Standalone Like–to-Like Extracts
Annexure-1: Standalone Like–to-Like Extracts Q3 FY14 Q3 FY15 % ` Billion Reported IES Like-to-Like Total Change Net Sales / Revenue from Operations 143.88 4.17 139.71 149.95 7% EBITDA 16.89 0.86 16.02 15.70 -2% Interest Expenses (2.91) (0.02) (2.89) (5.00) 73% Depreciation (1.99) (0.07) (1.92) (2.64
Slide 30: Annexure-2: Group 9M P&L Summary Extracts
Annexure-2: Group 9M P&L Summary Extracts Other L&T Group L&T Fin. Devl. Subsidiaries ` Billion IT & TS Parent Services * Projects & % Eliminations 9M FY15 9M FY14 Change FY14 Revenue from Operations 380.49 55.65 47.17 42.70 113.80 639.82 581.04 10% 851.28 EBITDA 39.98 10.86 6.68 19.65 0.22 77.39 70
Slide 31: Annexure 3: Group Balance Sheet Extracts
Annexure 3: Group Balance Sheet Extracts Other L&T Group L&T Fin. Devl. Subsidiaries ` Billion IT & TS Inc / Parent Services * Projects & Dec-14 Mar14 (Dec) Eliminations Net Worth (Excl. Pref. Cap.) 366.5 27.7 45.1 88.4 (123.9) 403.8 377.1 26.7 Minority Interest - 0.0 31.6 10.7 5.3 47.5 31.8 15.7 Bo
Slide 32: Annexure 4: Group Cash Flow (Summarised)
Annexure 4: Group Cash Flow (Summarised) ` Billion Q3 FY15 9M FY15 Q3 FY14 9M FY14 Operating Profit 30.10 77.80 25.95 74.53 Adjustments for NWC (0.74) (25.57) (8.84) (70.53) Direct Taxes (Paid) / Refund - Net (7.22) (20.97) (4.01) (20.89) Net Cash from Operations 22.14 31.26 13.10 (16.89) Investment