Larsen & Toubro Limited · NSE:LT
Larsen & Toubro — FY2012 Earnings Presentation
36 slides from Larsen & Toubro's earnings presentation, May 14, 2012
Slide 1: Larsen & Toubro Limited Analyst Presentation - FY12
LARSEN & TOUBRO LIMITED Analyst Presentation - FY12 14th May 2012
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 Standalone Performance Segmental Performance Group Performance Sectoral Opportunities & Outlook 14th May 2012 3
Slide 4: Standalone Performance
Presentation Outline Standalone Performance 14th May 2012 4
Slide 5: Performance Highlights – FY12
Performance Highlights – FY12 Moving ahead 20% 100 bps Recurring PAT EBITDA Margin 21% Net Sales 11% Order Book 12% Order Inflow 14th May 2012 5
Slide 6: Sustaining Profitable Growth
Sustaining Profitable Growth Order Inflow Net Sales 804 532 695 706 439 ` Billion 370 ` Billion 517 339 426 250 FY 08 FY 09 FY 10 FY 11 FY 12 FY 08 FY 09 FY 10 FY 11 FY 12 Order Book Recurring PAT 1457 44.1 1,309 36.8 31.8 1,004 27.1 ` Billion ` Billion 708 21.0 536 FY 08 FY 09 FY 10 FY 11 FY 12 FY
Slide 7: Order Inflow & Order Book
Order Inflow & Order Book Order Book Order Inflow 1457 804 1309 11% 14.93 5.93 12% 706 7.32 IJVs IJVs 9.39 Q4 303 1,442 202 Excl. IJVs Q3 1,302 134 171 Q2 205 161 Q1 156 162 FY11 FY12 FY11 FY12 Amount in ` Bn Muted Order Inflows reflective of challenging environment Investment decisions witnessed in
Slide 8: Order Inflow & Order Book – FY12 Sectoral Break-up
Order Inflow & Order Book – FY12 Sectoral Break-up Order Inflow: 21% 48% 11% 11% 9% ` 705.74 Bn Order Book: 43% 28% 10% 15% 4% ` 1457.23 Bn Infrastructure Power Hydrocarbons Process Others Infrastructure Power Hydrocarbons Process Others Roads and Generation Upstream Minerals & Shipbuildin
Slide 9: Order Inflow & Order Book – FY12 Geographical Break-up
Order Inflow & Order Book – FY12 5% 3% 5% 9% 7% 13% Geographical Order Order Net Break-up Inflow Book Sales 82% 88% 88% Domestic Middle East Others 10% 17% Order Order Customer 32% 58% 35% 48% Inflow Book Profile Private Public (Incl. PSUs) Devl. Projects - L&T 14th May 2012 9
Slide 10: Performance Summary – Sales to EBITDA
Performance Summary – Sales to EBITDA % Q4 FY12 Q4 FY11 % Change ` Billion FY12 FY11 Change Net Sales / Revenue from 184.61 152.61 21% 531.71 439.06 21% Operations ---(A) 143.15 114.32 25% Mfg, Cons. & Opex (MCO) 410.20 334.68 23% 9.75 8.02 22% Staff Costs 36.64 28.30 29% 6.10 6.84 -11% Sales, adm.
Slide 11: Performance Summary – Operational Costs & Profitability
Performance Summary – Operational Costs & Profitability Subcontracting charges, Q4 FY12 21.2% Material cost, Other manf. (18.7%) 48.8% exp., (49.1%) 7.5% (7.1%) Staff Costs, 5.3% (5.2%) Sales, adm. Subcontracting & other Exp., charges, FY12 3.3% 20.0% EBITDA, Material cost, (4.5%) (21.4%) 13.9% Othe
Slide 12: Performance Summary – Profitability
Performance Summary – Profitability % Q4 FY12 Q4 FY11 % Change ` Billion FY12 FY11 Change 25.61 23.43 9% EBITDA 62.83 56.40 11% 13.9% 15.4% -1.5% EBITDA Margins 11.8% 12.8% -1.0% (1.21) (1.26) -4% Interest Expenses (6.66) (6.19) 8% (1.80) (2.36) -24% Depreciation (7.00) (5.99) 17% 3.14 3.57 -12% Oth
Slide 13: Performance Summary – Balance Sheet
Performance Summary – Balance Sheet Incr / ` Billion Mar-12 Mar-11 (Decr) Net Worth 252.23 218.46 33.77 Non-Current Liabilities 61.14 59.64 1.50 Current Liabilities 363.56 293.00 70.56 Total Sources 676.93 571.10 105.83 Fixed Assets 83.64 74.16 9.48 Non- Current Investments 90.85 74.01 16.84 Long te
Slide 14: Cash Flow Statement (Standalone Co)
Cash Flow Statement (Standalone Co) ` Billion FY12 FY11 Operating Profit 67.75 60.94 Adjustments for Working Capital Changes (35.08) (2.60) Direct Taxes (Paid) / Refund - Net (21.85) (20.01) Net Cash from Operations 10.82 38.33 Investments in Fixed Assets (Net) (15.97) (15.19) (Investment) / Divestm
Slide 15: Segmental Performance
Presentation Outline Segmental Performance 14th May 2012 15
Slide 16: Segmental Break-up – FY12
Segmental Break-up – FY12 Net Revenues Machinery & Industrial Others Products 1.8% Engineering 5.1% (1.5%) & Electrical & (6.1%) Construction Electronics 87.4% 5.7% (86.0%) (6.4%) EBITDA Machinery & Industrial Others Products 3.0% 7.5% Engineering (2.1%) (8.9%) & Electrical & Electronics Constructio
Slide 17: 'Engineering & Construction' Segment
‘Engineering & Construction’ Segment % Q4 FY12 Q4 FY11 % Change ` Billion FY12 FY11 Change 193.21 285.36 -32% Order Inflows 635.73 736.02 -14% 24.81 16.20 53% --- Exports 113.83 66.98 70% Order Book 1,434.48 1,287.32 11% --- Exports 168.40 92.57 82% 165.33 134.13 23% Net Revenues 464.62 377.45 23% 1
Slide 18: 'Electrical & Electronics' Segment
‘Electrical & Electronics’ Segment % Q4 FY12 Q4 FY11 % Change ` Billion FY12 FY11 Change 9.44 8.21 15% Net Revenues 30.67 28.35 8% 1.58 0.54 191% --- Exports 3.43 2.03 69% 1.59 2.06 -23% EBITDA 3.89 4.75 -18% 16.9% 25.1% -8.2% EBITDA Margins 12.7% 16.8% -4.1% Net Segment Assets 13.63 11.86 15% Modes
Slide 19: 'Machinery & Industrial Products' Segment
‘Machinery & Industrial Products’ Segment % Q4 FY12 Q4 FY11 % Change ` Billion FY12 FY11 Change 7.14 8.18 -13% Net Revenues 26.97 26.66 1% 1.06 0.80 34% --- Exports 4.48 2.02 121% 1.41 1.84 -23% EBITDA 5.25 5.64 -7% 19.8% 22.5% -2.7% EBITDA Margins 19.5% 21.2% -1.7% Net Segment Assets 7.01 4.70 49%
Slide 20: 'Others' Segment
‘Others’ Segment % Q4 FY12 Q4 FY11 % Change ` Billion FY12 FY11 Change 2.70 2.09 29% Net Revenues 9.45 6.60 43% 2.41 1.52 59% --- Exports 8.22 5.11 61% 0.39 0.51 -25% EBITDA 2.11 1.30 63% 14.3% 24.6% -10.3% EBITDA Margins 22.4% 19.7% 2.7% Net Segment Assets 6.00 5.43 11% Spurt in revenues arising fr
Slide 21: Group Performance
Presentation Outline Group Performance 14th May 2012 21
Slide 22: Consolidated P&L Statement
Consolidated P&L Statement L&T L& T & L&T Group Devl. Fin. ` Billion Other FY12 Projects S ervices FY12 FY11 % Change S&A 531.71 Income from Operations 10.67 29.97 602.49 643.13 520.44 24% 62.83 EBITDA 5.29 5.72 76.69 87.70 76.77 14% 11.8% EBITDA Margins 49.6% 19.1% 12.7% 13.6% 14.8% -1.2% (6.66) In
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet L&T L&T Group ` Billio n Mar-12 Mar-12 Mar-11 Inc/(Dec) Net Worth: - Dev. Projects 95.40 65.73 29.67 - Fin. Services (Including Insurance) 41.76 38.89 2.87 252.23 Others 253.81 223.75 30.07 Elimination (Dev. Proj. & Fin. Serv) (97.10) (77.86) (19.24) - Minority Interest (C
Slide 24: Consolidated Cash Flows
Consolidated Cash Flows ` Billion FY 12 FY 11 Operating Profit 93.06 80.37 Changes in Working Capital (57.32) (7.94) Direct Taxes (Paid) / Refund - Net (28.52) (26.69) Net Cash from Operations 7.22 45.74 Investments in Fixed Assets (Net) - Devl. Projects (34.57) (27.31) - Others (36.47) (41.36) (Pur
Slide 25: L&T Infotech
L&T Infotech Amount in ` Bn Total Income Profit after Tax 31.66 29% 4.19 8.17 33% 24.58 1.10 3.16 Q4 7.01 8.35 Q4 0.94 1.16 Q3 Q3 6.01 Q2 7.76 Q2 0.71 1.03 Q1 5.89 Q1 0.76 7.38 0.90 5.67 0.75 FY11 FY12 FY11 FY12 Robust growth driven by North American business and INR depreciation Healthy PAT margins
Slide 26: Financial Services
Financial Services Amount in ` Bn L&T Finance Holdings Q4 FY12 Q4FY11 Y-o-Y FY12 FY11 Y-o-Y NBFCs Loans and Advances 254.42 182.43 39% 254.42 182.43 39% Total Income 8.52 6.03 41% 30.07 21.17 42% NIM (%) 5.95% 6.57% - 5.38% 6.84% - PAT 1.39 1.11 25% 4.66 4.32 8% Gross NPA (%) 1.80% 1.07% - 1.80% 1.0
Slide 27: Developmental Projects
Developmental Projects Roads & Bridges Power 19 projects (10 5 projects operational) 2828 MW 2090 Km Proj. Cost: ` 210 Bn Proj. Cost: ` 216 Bn Ports Metro Rails Urban Infra 3 projects (2 1 project 17 projects operational) 71.16 Km 28.6 Million sq.ft 45 MTPA Proj. Cost: ` 16
Slide 28: Sectoral Opportunities & Outlook
Presentation Outline Sectoral Opportunities & Outlook 14th May 2012 28
Slide 29: Opportunities and Challenges - Infrastructure
Opportunities and Challenges - Infrastructure Opportunities – Transportation Infra –NHAI awards, Metro Rails in Tier-II cities, Railways (DFC) orders, airports (domestic + international), port expansion Residential (incl. low cost housing), Office Space & other urban infra (tourism, health and educa
Slide 30: Opportunities and Challenges - Hydrocarbon
Opportunities and Challenges - Hydrocarbon Opportunities – Good mix of Domestic and International opportunity Market for new-build Jack-up Rigs & FPSOs looking up With firm crude prices, capex in MENA set for revival Refining units expanding into downstream petchem for value addition Opportunities f
Slide 31: Opportunities and Challenges - Process
Opportunities and Challenges - Process Opportunities – Under-capacity in Indian market is leading to capacity addition in ferrous metals sector Non-Ferrous growth catalyzed by low per capita consumption & industrial capex Railways (DFC and Railway sidings), Mining, Ports and Power likely to drive be
Slide 32: Opportunities and Challenges - Power
Opportunities and Challenges - Power Opportunities – Large capacity additions (Govt./ Pvt) targeted in Thermal power during XII Plan; Govt. push to policies and reforms aimed at sector revival Hydel projects capex lined up T&D spends slated to increase (including HSTC corridors) Conducive policies i
Slide 33: Factors Influencing Outlook
Factors Influencing Outlook Economy Political Govt. Policy Structure & Processes Strategy 14th May 2012 33
Slide 34: 14th May 2012
14th May 2012 34
Slide 35: Annexure 1: Major Orders Booked in Q4 FY12
Annexure 1: Major Orders Booked in Q4 FY12 Project Details ` Bn Domestic: Design & Build road package (Shivpuri - Dewas Section of NH-3 in Madhya Pradesh) for 19.37 GVK Projects and Technical Services Limited Hot Strip Mill & Steel Melting Shop and 2x200 TPH CDQ packages for Tata Steel, 17.71 Kaling
Slide 36: Annexure 2: Details of Other Income
Annexure 2: Details of Other Income % % Q4 FY12 Q4 FY11 ` Billion FY12 FY11 Change Change 1.50 0.88 69% Interest Income 5.69 3.36 69% 0.49 0.79 -38% Income & Profit on sale of Investments 1.79 2.84 -37% 0.51 0.81 -37% Dividend from S&A Companies 4.08 2.29 78% 0.64 1.09 -41% Miscellaneous Income 1.82