LARSEN & TOUBRO LTD
RESULTS FOR Q2 FY
2013
SEP.2012
The
quarterly Results of L&T Ltd for the 2nd Qtr ending Sep, 2012 are tabulated below. There has been
an all-round improvement in Sales and Profits in all segments. The outlook for
Future also is reasonably Bright.
QUARTERLY RESULTS –
TABLE
|
L&T
|
Q.E.SEP12
|
%Dif QoQ
|
3m/f Jun 12
|
%Dif YoY
|
3 m/e sep,11
|
|
Gross Sales
|
1332753
|
10.34
|
1207833
|
17.18
|
1137391
|
|
Less E.Duty
|
13230
|
7.58
|
12298
|
1.96
|
12976
|
|
NetSales
|
1319523
|
10.37
|
1195535
|
17.35
|
1124415
|
|
raw material etc
|
319101
|
-14.22
|
372005
|
12.65
|
283272
|
|
Sub-contracting Chrg
|
286875
|
12.81
|
254299
|
59.24
|
180152
|
|
Construction Materials
|
334946
|
64.46
|
203665
|
32.87
|
252083
|
|
Purchases if SIT
|
43712
|
-12.87
|
50167
|
-13.38
|
50466
|
|
Chng of FG,SIT,WIP
|
-87506
|
71.07
|
-51151
|
573.95
|
-12984
|
|
Other Mfg, Constr.Exp
|
99337
|
-6.53
|
106279
|
17.81
|
84319
|
|
Empl.Exp
|
130052
|
37.27
|
94740
|
20.62
|
107817
|
|
Sales,AdmnExp
|
52468
|
-7.68
|
56832
|
-8.97
|
57637
|
|
Depreciation
|
20396
|
6.26
|
19194
|
19.34
|
17090
|
|
Total Exp
|
1199381
|
8.44
|
1106030
|
17.6
|
1019852
|
|
Profit from Oprns
|
120142
|
34.23
|
89505
|
14.9
|
104563
|
|
Other Income
|
32939
|
-45.63
|
60584
|
2.91
|
32009
|
|
Profit Bef. Fin.Costs
|
153081
|
1.99
|
150089
|
12.09
|
136572
|
|
Finance Costs
|
23502
|
2.89
|
22841
|
19.29
|
19701
|
|
Profit Aft. Fin.Costs
|
129579
|
1.83
|
127248
|
10.87
|
116871
|
|
Except.Items
|
21429
|
-658.92
|
-3834
|
-
|
|
|
Profit Bef.Tax
|
151008
|
22.36
|
123414
|
29.21
|
116871
|
|
Prov.For current Tax
|
42317
|
12.56
|
37595
|
17.22
|
36102
|
|
Prov.For Def.Tax
|
249
|
-145.6
|
-546
|
-73.23
|
930
|
|
Total Prov.
|
42566
|
14.89
|
37049
|
14.94
|
37032
|
|
Net Profit Aft.Tax
|
108442
|
25.56
|
86365
|
35.83
|
79839
|
|
Extraor.Items
|
5289
|
-
|
-
|
||
|
Net Profit Aft.Tax
|
113731
|
31.69
|
86365
|
42.45
|
79839
|
|
B.EPS (Bef.Ex.I)
|
17.67
|
25.32
|
14.1
|
35.2
|
13.07
|
|
D.EPS(Bef.EI)
|
17.54
|
25.29
|
14
|
35.55
|
12.94
|
|
B.EPS Aft EI
|
18.54
|
31.49
|
14.1
|
41.85
|
13.07
|
|
D.EPS Aft EI
|
18.39
|
31.36
|
14
|
42.12
|
12.94
|
|
P.A.T.(EXCL.EXCEPT &EXTRAO.ITEMS)
|
91476
|
2.83
|
88955
|
14.58
|
79839
|
|
Public Hlding(%)
|
96.82%
|
||||
HIGH LIGHTS
Order inflow surges 30%
Order Book Up 11%
Sales / Revenue grows 17%
EBITDA UP 16%
Overall PAT increases by 42%
·
L&T has recorded
Gross Revenue of Rs.13328 Cr for Q2 FY
13, registering 17 % y-o-y growth. International Sales during the quarter constituted
21 % of total revenue.
·
Order inflow at Rs. 20967 Cr recorded an impressive y-o-y
growth of 30%, sustaining the momentum seen during first quarter. Major
orders came from
Building & Factories,
Infrastructure and Hydrocarbon sectors.
·
Order Book stood
healthy at Rs. 158528 Cr as at September 30, 2012. International Order Book constituted 12% of the total Order
Book.
·
Recurring Profit
after Tax for the quarter stood at Rs.
915 Cr - recording an increase of 15% over the corresponding quarter of the
previous year. After considering
certain exceptional and extra- ordinary items of income,
the overall PAT for the quarter
stood at Rs.1137 Cr, higher by 42%
Engineering
& Construction (E&C) Segment
·
E&C Segment
achieved Net Segment Revenue of Rs.11633
Cr for the quarter registering a y-o-y growth of 19% on the back of healthy order book and progress on various jobs as per
schedule.
·
Despite persisting
subdued investment cycle witnessed during the quarter, the businesses of E&C
Segment garnered fresh orders of Rs.19136
Cr, registering a significant y-o-y
growth of 31%. International orders constituted 24% of the total order inflow of the segment.
·
Order Book of
the Segment stood at Rs.156183 Cr as at
September 30, 2012.
·
The Segment
recorded improved Operating Margin at 12.2%
aided by efficient project
management and execution.
Electrical
& Electronics (E&E) Segment
·
Recorded Net
Segment Revenue of Rs.839 Cr, a moderate
y-o-y growth of 7% , as industrial demand remained sluggish. International sales contributed to 10%
of total revenue as compared to 6% in Q2 FY 12. Recorded an improved Operating Margin at 11.1%,
despite competitive pressures.
Machinery
& Industrial Products (MIP) Segment
·
Recorded Net
Segment Revenue of Rs. 531 Cr vis-à-vis Rs.592 Cr recorded in Q2 FY 12. International
sales constituted 17% of the total revenue. Operating
Margin of the segment was lower at
14.7% due to reduced sales volume
and inflation effect on input costs.
“Others”
Segment
·
Includes
Integrated Engineering Services which recorded Revenue of Rs.308 Cr, registering a smart growth of 51%
over Q2 FY 12. Operating Margin stood at 23.1%
vis-à-vis 20.7% recorded in Q2 FY
12.
Order
Book (Up 11%) & Order Inflows (26%)
- H1 FY 13
Ø Core Infrastructure opportunities driving order inflows; Hydrocarbon
tendering picking up; broadbased investment momentum in power and industrial
capex yet to pick up
Ø Delay in Investment decision making continues
Ø Order Book presently at 2x+ revenues
Performance
Summary - Sales to EBITDA :
Ø EBITDA was 14.05 in Q2 FY 13; 12.17 in Q2 FY 12
;24.92 in H1 FY 13; 23.65 in Hi FY 12 and 62.83 in FY 12. (Rs.in Blns)
Ø Robust
Sales growth witnessed across project businesses driven by large order book and
efficient execution
Ø FY12
International Hydrocarbon Orders translating into FY13 Exports Sales growth
Ø Increased
MCO Expenses due to job mix variation , material intensity and higher
sub-contracting
Ø Staff
cost increase led by manpower augmentation and normal revisions / increments
Ø Reduction
in Q2 SGA due to lower non-linear provisions, lesser Forex MTM, and expense
control
Performance Summary –
EBITDA to PAT (Rs.in Blns)
Ø EBITDA
Margins were 10.7% in Q2 FY 13; 10.8% in Q2 FY 12; 9.9% in H1 FY 13; 11.4% in
H1 FY 12; and 11.8% in FY 12.
Ø Profit
After Tax stands at Rs.11.37 Blns in Q2 FY 13; Rs.7.99 Blns in Q2 FY 12;
Rs.20.01 Blns in H1 FY 13; Rs.15.45 Blns in H1 FY 12. And 44.56 Blns in FY 12.
Ø
Stable Q2 EBITDA margins in line with
execution progress & expense control
Ø
Interest expenses are commensurate with
borrowing levels
Ø
Other Income in Q2 mainly on account of
treasury gains
Ø Exceptional
/ Extraordinary items in Q2 arising out of divestment gains and Satyam
provision write back; VRS charge in Q1
Balance Sheet :
Ø Total
Debt: Sep’12 – Rs.120 Bn; Jun’12 – Rs. 114 Bn; Mar’12 – Rs. 99 Bn
Ø Gross
D/E: 0.44
Ø Support
to S&A Companies - mainly to Developmental projects
Ø Segmental
NWC as % of Sales: 16.5% (Jun’12: 15.3%) – due to vendor credit
‘Engineering
& Construction’ Segment :
Ø Headway
in Transportation, Urban Infra and Water Infra sectors are main drivers of
Order Inflow growth; other sectors still witnessing challenging environment
Ø Sporadicity
in export award decisions; some success in Hydrocarbon and Nuclear Power
Ø Revenue
growth driven by large order book and superior project rollout
Ø Growth
in Export sales boosted by FY12 Hydrocarbon wins
Ø Healthy
margins due to execution efficiency
Ø Y-o-Y
Increase in segment assets due to NWC spike
‘Electricals &
Electronics’ Segment
Ø Modest
growth in sales due to subdued industrial activity and delayed customer
clearances
Ø Switchboard
order wins from Middle East translating into export growth
Ø Business
is focusing on margin recoupment through profitable product mix, shifting of
production to low cost regions, and scaling up of international business for
value-added products / projects
‘Machinery & Industrial Products’ Segment :
Ø Dampened
revenues witnessed across most businesses due to –
o
→Sluggish industrial conditions
o
→Lower offtake from wind power industry
o
→Stress on supply chain
o
→Transfer of business to subsidiary for
integration purposes
Ø Mining
ban continues to affect Construction and Mining business
Ø Margins
adversely affected due to higher input costs and operating leverage
‘OTHERS’ Segment :
Ø Major
revenue contributed by Integrated Engineering Services (business derived mainly
from North America and European markets)
Ø Revenue
growth in Q2 and H1 aided by INR depreciation
Ø IES
currently in ramp-up phase
Ø Margin
expansion achieved through operational efficiencies and aided by currency
movements
L&T Infotech Group
– H1 FY 13
Ø Robust
revenue growth of 28% in Q2 and 24% in H1 seen across all business segments and
industry verticals
Ø Earnings
aided by currency movement
Ø Positive
outlook
Ø Profit
After Tax up by 37% in H1 FY 13
L&T Finance Holdings :
Ø PAT
Rs.2.64 Blns in H1 FY 13; Rs.2.21 Blns in H1 FY 12 (+20%); Rs.4.55 Blns in FY
12.
Ø Diversified
business portfolio has been an enabler of healthy growth
Ø Lower
disbursements are mainly due to drop in Infra Finance disbursements and reflect
the sluggishness in the current infra environment
Ø Rural
segment witnessing strong growth
Ø Focus
is on credit quality and sustaining NIM’s
OUTLOOK : Headwinds
& Tailwinds
·
GDP Growth
·
High Subsidies, Worrisome Twin Deficits, Inflation, Currency,
Oil Prices
·
Weak Investment Momentum
·
Resource Shortages (Land, Fuel, Water, Manpower)
ü Intrinsic Strengths (Order Book, Balance Sheet, Governance, Talent
Pool, Execution, Strategy)
ü Political Re-energising
ü Signs of Reforms, ‘Power Push’, some new Investment Signs (Metros,
DFCC, etc)
ü Consumption, Savings, Demographics, Transitioning Democracy
* * *
E N D * * *
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