LARSEN & TOUBRO LTD
Q2 FY13
Performance Highlights
30% UP - Order Inflows
11% UP - Order Book
17% UP - Sales
16% UP - EBITDA
15% UP - Recurring
PAT
ORDER INFLOW & ORDER
BOOK – MH1 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
Ø
ORDER INFLOWS – Rs.406 Bn
Ø
Order Book
- Rs.1585 Bn
PERFORMANCE SUMMARY
SALES TO EBITDA
(Rs.In Bns)
Q2 FY13 :: Q2 FY12 :: % Ch:: Rs. Billn
132 :: 112:: 17% :: Net Sales(A)
27 :: 13 :: 111% :: Export Sales
100 :: 84
:: 19% :: Mfg, Cons. & Opex
13 :: 11 ::
21% :: Staff Costs
5 :: 6 :: -9% :: Sales, adm. & other
118 :: 100
:: 18% :: Total Opex (B)
14 :: 12 :: 16% :: EBITDA
(A-B)
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
Q2 FY13 :: Q2
FY12 :: % Change :: Rs.Billion
14.05 :: 12.17 :: 16% :: EBITDA
10.7% :: 10.8% :: -0.1%
:: EBITDA
(2.35) :: (1.97)::
19% :: Interest Expenses
(2.03) :: (1.71):: 19%
:: Depreciation
3.29 :: 3.20 ::
3% :: Other Income
(3.81) :: (3.70):: 3% :: Provision for Taxes
9.15 :: 7.99
:: 15%
:: Recurring PAT
11.37 :: 7.99 :: 42% :: Profit
after Tax
Ø Stable Q2 EBITDA margins in line with execution progress
and 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
SEGMENTAL BREAK-UP :: H1 FY 13
Details
::NET REVENUES :: EBITDA
Engg & Constn : : 87.6% (85.6%) :: 83.5%(81.8%)
Electr.&Electronics : 5.8% (6.7%) ::
5.5%(5.8%)
Mach&Indl Products : 3.9% (5.7%) ::
4.9%(8.6%)
Others : 2.7% (2%) :: 6.1%(3.8%)
·
Figures in
Brackets relate to corresponding Last Year Period
‘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
Ø EBITDA MARGINS :: 11.6% IN H1 FY 13
(11.9% IN H1 FY12)
‘Electrical & 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
Ø EBITDA MARGINS :: 11.5% IN H1FY 13(10.8% IN H1 HY12)
‘Machinery & Industrial Products’
Segment
Ø Dampened revenues witnessed across most
businesses due to –
Ø
→Sluggish industrial
conditions
Ø
→Lower offtake from wind power
industry
Ø
→Stress on supply chain
Ø
→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
Ø EBITDA
MARGINS : 15.4% IN H1 FY 13 (19.0% IN H1 FY 12)
‘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
Ø EBITDA MARGIN IN H1 FY 13 : 27.4%(23.5%
IN H1 FY12)
L&T Infotech Group – H1 FY13
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 Pat :: Rs.2.72 Bn (Rs.1.98 Bn)
L&T Finance Holdings
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
Ø PAT Rs.2.64 Bn (H1 FY 13); 2.21 Bn (H1 FY 12); Rs.4.55 Bn FY 12
Concessions
Business Portfolio
Roads
and Bridges:
Portfolio: 19 projects; 10 operational, 9 under
implementation
Development: 2092 km
Project Outlay: `217 Bn
Metro:
Portfolio: 1 project;
under implementation
Development: 71.16 km
Project Outlay: ` 164 Bn
Power:
Portfolio: 5 projects;
under development / implementation
Capacity: 2842 MW
Project Outlay: ` 212 Bn
Balance Equity Commitment (Sept 2012): ` 93
Ports:
Portfolio: 3 projects;
2 operational, 1 under implementation
Capacity: 45 Mn TPA
Project Outlay: ` 57 Bn
Ø
Total
Project Cost : (sep,2012) :Rs.650 Bn
Ø
Equity
Invested :Rs.49 Bn
Ø
Balance
equity commitment : Rs.93 Bn
Annexure 1: Major Orders Booked in Q2 FY13
Domestic ::
Ø Design & Engineering, Civil, Inland Transportation,
Installation, Planning, Testing and Commissioning & Allied works for Lata
Tapovan Hydro Electric Project, Uttarakhand :: Rs.7.81 Bn
Ø EPC contract for four Well Head Platforms (B 127) for ONGC :: Rs.7.49
Bn
Ø EPC contract for construction of significant stretches of
Kishangarh - Udaipur - Ahmedabad Highway, a part of NHDP Phase V from GMR Group
:: Rs.6.45 Bn
Ø Railway electrification works between Guntakal –Raichur -Wadi
stations of South Central Railway and railway construction, track work,
signaling & telecommunication in the Lucknow and Izatnagar divisions of
North Eastern Railway :: Rs.5.44 Bn
Ø Construction of 74 MLD water treatment plant, associated civil
and Electro Mechanical & Instrumentation works for 111 villages and one
town on a DBOM model, and drinking water supply project in Rajasthan :: Rs.5.18
Bn
Ø Design and Construction of Elevated Viaduct, Elevated Ramp &
Five Elevated Stations etc. as part of Phase III of DMRC :: Rs.3.77 Bn
Ø Construction of 23 multistoreyed towers for a residential
project :: Rs. 3.60 Bn
Ø Design and construction of four lane flyover, rail overbridges
and viaduct at various locations in Kolkata :: Rs.2.75 Bn
Ø Doubling of lines on Rewari - Manheru section on Bikaner
division of North Western Railway :: Rs.2.12 Bn
Ø International
Ø EPC contract for Saih Rawl depletion compression project for
PDO, Oman :: Rs.13.02 Bn
Ø Supply & Installation of New 220/33 kV Grid Station and all
Related 220 kV Cable/ Overhead Line works in UAE :: Rs,2.58 Bn
Ø Construction of 11 kV
distribution network and all associated HV equipment including backup
generators and replacement of W42 switching station in UAE :: Rs.1.68 Bn
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