Investor Presentation
9th February, 2015
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 risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions with respect to investments, fiscal
deficits, regulations, etc., interest and other fiscal costs generally prevailing in the economy. Past performance may not be indicative of future performance. The company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the company. 2
Presentation Outline L&T Overview
Business Overview
Group Performance
Sectoral Opportunities & Outlook
3
Presentation Outline L&T Overview
Business Overview
Group Performance
Sectoral Opportunities & Outlook
4
L&T - At a Glance India’s largest E&C company with interests in Projects, Infrastructure Development, Manufacturing, IT & Financial Services
Professionally Managed Company
FY 14 Group Revenues: `851 Bn
(US$ 14.3 Bn)
Market Cap (9th Feb’15): ₹1461 Bn (US$ 24 Bn)
Credit Ratings CRISIL: AAA/Stable ICRA: AAA(Stable)
5
L&T - At a Glance
6
L&T – Shareholding Pattern Mutual Funds & Pvt. Insurance Cos., 11.8% L&T Employee Welfare Foundation, 12.0%
Individuals, 23.0%
Others, 3.2%
31st Dec 2014
Major Institutional Shareholders Govt. Financial Institutions & Insurance Companies, 29.7%
FII’s & GDR, 20.3%
Life Insurance Corporation of India
% Shares 16.9%
Administrator of the SUUTI
8.2%
General Insurance Corp. of India
1.9%
Blackrock Group
1.8%
HDFC Trustee Company Limited
1.8%
Carmignac Group
1.3%
Government of Singapore
1.3%
Listed with BSE & NSE GDRs listed with LSE and LuxSE L&T is one of the most widely held listed companies in India No promoter holding Uninterrupted Dividend payment record since 1946; FY14 Dividend of Rs. 14.25 per share (FY13: Rs. 12.33 per share) 7
Experienced Management Team A M Naik Group Executive Chairman BE [Mech] Joined L&T in March 1965 Diverse and vast experience in general management, Technology and E&C
K Venkataramanan Chief Executive Officer & Managing Director BE [Tech] – IIT, Delhi Joined L&T in June 1969 Vast experience in product engineering and project management
S. N. Subrahmanyan Whole-time Director & Sr. Executive Vice President (Construction & Infrastructure) B.SC ENGG (CIVIL), MBA (Finance) Joined L&T in November 1984 Vast experience in Design & Build (D&B) Contracts, PPP Projects, Engineering and Construction Industry
R Shankar Raman Whole-time Director & Chief Financial Officer B.Com, ACA, CWA Joined L&T Group in November 1994 Vast experience in Finance, Taxation, Insurance, Risk Management, Legal and Investor Relations
M V Kotwal Whole-time Director & President (Heavy Engineering) BE [Mech], Univ. of Bombay Joined L&T in October 1968 Vast experience in Heavy Engineering business including manufacture of critical equipment for Nuclear Power & Space Research Program
Shailendra Roy Whole-time Director & Sr. Executive Vice President (Power, Minerals & Metals) BE (Tech) Joined L&T in 2004 Vast experience in Thermal Power Business
8
Corporate Governance L&T’s essential character revolves around values based on transparency, integrity, professionalism and accountability Four-tier Governance Structure
Board of Directors Executive Management Committee (EMC)
Independent Company (IC) Board
Strategic Business Group (SBG) / Business Unit (BU) 9
Journey Towards Excellence The Beginnings (1938-60) 1938: Formed as a partnership 1952: Listed on BSE Commenced trading & making dairy equipment, fabrication serv., war-time ship repair Entered construction business thro’ acquisition of ECC Started switchgear business
Seeds of Growth (1960-90) Emerged as leading & acclaimed engineering contractors Commenced production of tractor undercarriages, valves, welding components, earthmoving equipment and cement Established fabrication facility and yard on the waterfront at Hazira for Hydrocarbon business
Expansion & Consolidation (1990-2000)
Entered into IT, Financial services and Infrastructure Concessions business Entered into Engineering JVs with technology majors Emerged as India’s largest integrated E&C company Expansion through internationalisation Developed road map for portfolio restructuring
Restructuring for Value Creation (2000-14) Divested non - core business (Cement, Tractor, Glass, RMC, PDP, Medical) Capacity expansion & TAMCO acquisition Entry into new ventures (MHI JVs, Shipbuilding, Forging) Tie-up with tech majors in defence and nuclear power Foray into power generation Listing of Financial Services Significant ramp up of Concessions Business Expansion of IT & Engg. Services business Reorganisation into ICs Acquisition of 100% ownership in Audco / L&T Komatsu / EWAC Alloys Demerged Hydrocarbon & Integrated Engg. Service businesses into separate wholly owned subsidiaries 10
L&T’s Sustainability Initiative
The L&T Sustainability Report 2014 is a ‘GRI Checked’ , Externally Assured, Application Level A+ report.
Sustainability Thrust Areas Climate Change Carbon footprint mapping
Energy Conservation
Water Conservation
Material Management
Safety
Community
Accolades
L&T Ranks In Top 10 Companies for CSR – The Economic Times
Ranked Asia’s 2nd Most Sustainable Company in Industrial Sector in Channel NewsAsia’s Sustainability Rankings 2014
One of the only five Indian Companies to feature in the Global ‘A’ list for its Carbon Performance – CDP 2014
One of the eight Indian companies featuring in Dow Jones Sustainability Emerging Markets Indices
Sustainability – Environment & Social
Green Buildings L&T’s own – 2.1 million sq. ft. Constructed for Clients – 43.02 million sq. ft.
All 28 L&T Campuses are zero wastewater discharge 5 Campuses are water positive
Parameter
Education - Over two lakh children impacted
Values
2012-13
2,07,368
1,61,467
Energy Conservation (GJ)
2013-14
Renewable power contributes 7.9 % of indirect energy
Energy Consumption (GJ/Employee)
132.82
Direct GHG Emissions (Tons/Employee) Water Consumption (m3/employee)
7.80
treatment of
organic waste
Healthcare: Mother & Child - 8 community health centres provide state-of-the-art diagnostic health services
155.81
Aligned with
National Action Plan on Climate Change and
Food waste processing plants for
Skill Building - 8 construction skills training institutes empowering more than 13,000 people
UN Millennium Development Goals
Thrust Areas Education
Skill Building
No. of Beneficiaries (201314) 242,024
45,209
Healthcare-Mother and Child
517,837
Total
805,070 12
Presentation Outline L&T Overview
Business Overview
Group Performance
Sectoral Opportunities & Outlook
13
Builders to the nation
Maruti Manesar (Haryana) Expansion
1320 MT FCC Regenerator – for RIL
88m Rail Bridge Jammu Udhampur
Wankhede Stadium, Mumbai
Baha’i Temple, Delhi
Mumbai International Airport
Oil & Gas Offshore Platforms
3rd Narmada High
Kakrapar Nuclear Power Plant, Guj
ITC Grand Chola Hotel, Chennai
Sri Sathya sai Whitefield Hospital
Srinagar Hydro Electric Plant
300 mtr Minerva Tower, Mumbai
2x384 MW CCPP, Vemagiri, A.P.
Transmission Lines in Himachal
Water Treatment Plant, Barmer
14
International Footprint – Marquee Jobs
Stadium at Barbados
Salalah Airport, Oman
Glorei (Commercial Space), Muscat
NMC Speciality hospital, Abu Dhabi
Bhukara Hotel, Uzbeckistan
World’s Longest Conveyer, Bangladesh
Bulk Cement Terminal, Colombo
Sabah, Malaysia
Punatsangchhu HEP, Bhutan
Sheikh Khalifa Interchange, UAE
Coal Gasifier for China
Transmission Lines, Al Majlis, Oman
Water Treatment Plant, Doha
1500 MT Tubular Reactor for Kuwait
Bi-metallic Urea Stripper for Saudi
MV Switchgear Factory, Malaysia
15
E&C Delivery Platform One of Asia’s largest vertically integrated E&C Companies
Design & Engineering
EPC Projects Manufacture & Fabrication
Construction
Single point responsibility for turnkey solutions
16
Quality Customer Mix
Indian Coastguard
MIAL
17
Multiple Alliances & Joint Ventures Alliances
Joint Ventures
Pre qualifications
Befula Investments
Note: Some of these are project specific alliances & pre qualifications
18
L&T’s Business Structure LARSEN & TOUBRO LTD. BUSINESS VERTICALS – INDEPENDENT COMPANIES (ICs)* BUILDINGS & FACTORIES TRANSPORTATION INFRASTRUCTURE HEAVY CIVIL INFRASTRUCTURE
SUBSIDIARIES & ASSOCIATES L&T HYDROCARBON ENGINEERING
FINANCIAL SERVICES IT & TECHNOLOGY SERVICES
WATER & RENEWABLE ENERGY INFRASTRUCTURE SPVs (BOTs)
POWER T&D METALLURGICAL & MATERIAL HANDLING POWER HEAVY ENGINEERING
MHI JVs (Boilers & Turbine Mfg.) OTHER MANUFACTURING & FABRICATION SUBSIDIARIES SERVICES AND OTHER SUBSIDIARIES & ASSOCIATES
SHIPBUILDING ELECTRICAL & AUTOMATION
* These are not separate legal entities
19
Presentation Outline L&T Overview
Business Overview
Group Performance
Sectoral Opportunities & Outlook
20
Three Year Performance Net Sales
Order Inflow 1270
851 1029
643
FY 12
` `Billion Billion
` Billion ` Billion
745
FY 13
FY 14
793
FY 12
FY 13
Order Book
EBITDA 107.9 ` Billion
` Billion
99.3 88.8
FY 12
FY 13
FY 14
FY 14
1,450
FY 12
1,648
FY 13
1,815
FY 14 21
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% 22
Group level Order Inflow & Order Book Amount in ` Bn
Order Inflow 930
16%
1078
346 290
Q3 Q2 Q1
340
Order Book 17%
2258
Geographical Breakup 18%
25%
1926 Q3 FY15
398
300
334
9M FY14
9M FY15
82%
9M FY14
9M FY15
75%
Order Inflow Domestic
Order Book International
Strong growth in Q3 order receipts mainly contributed by Infra Segment Q4+ Prospect pipeline looks promising Order Inflow increase in Q3 and 9 mth driven by domestic orders
Robust Order Book (2x+ Revenues) affords multi-year revenue visibility 23
Group Performance – Sales & Costs Q3 FY15
Q3 FY14 % Change
238.48
217.32
64.00
58.54
27%
27%
177.96
160.64
19.25
17.08
12.36
13.27
209.58
190.99
10%
` Billion
9M FY15
Net Sales / Revenue from Operations
9M FY14
% Change
FY14
639.82
581.04
10%
851.28
178.04
174.77
2%
240.04
28%
30%
-2%
28%
464.76
420.44
11%
625.78
13% Staff Costs
59.04
52.77
12%
71.41
-7% Sales, adm. & other Exp.
38.63
37.74
2%
46.77
562.43
510.95
10%
743.95
9% ----International Sales -
% of Total Sales
11% Mfg, Cons. & Opex (MCO)
10% Total Opex
Revenue growth driven by Infra and Services Businesses; partially offset by depleted Order Book in investment constrained segments (Power, MMH, Hydrocarbon, Heavy Engineering)
MCO charge in line with Sales Staff cost increase occasioned by manpower augmentation, increased level of international operations and normal revisions SGA Expenses benefit from stable currency and cost
24
Performance Summary – Operational Costs & Profitability Subcontracting charges, 17.3% (20.5%)
Q3 FY15 Material cost, 39.7% (37.0%)
Other Opex, 17.6% (16.4%)
Staff Costs, 8.1% (7.9%)
Sales, adm. & other Exp., 5.2% (6.1%)
EBITDA, 12.1% (12.1%)
Subcontracting charges, 17.6% (20.2%)
9M FY15
Material cost, 36.2% (34.8%)
Other Opex, 19.0% (17.4%)
Figures in brackets indicate corresponding period of the Previous Year
Staff Costs, 9.2% (9.0%)
Sales, adm. & other Exp., 6.0% (6.5%)
EBITDA, 12.1% (12.1%)
25
Group Performance Summary Extracts Q3 FY15
Q3 FY14 % Change
` Billion
10% EBITDA
% Change
9M FY15
9M FY14
77.39
70.09
12.1%
12.1%
(23.90)
(23.69)
1%
(31.41)
28.90
26.33
12.1%
12.1%
(9.20)
(8.84)
(6.79)
(5.88)
16% Depreciation
(20.35)
(17.32)
18%
(14.46)
2.35
1.96
20% Other Income
7.26
7.13
2%
9.82
(5.69)
(6.69)
(14.87)
(17.40)
-15%
(26.28)
8.67
7.97
26.95
20.62
31%
49.02
-
EBITDA Margin 4% Interest Expenses
-15% Provision for Taxes 9% PAT after Minority Interest
10%
FY14
-
107.33 12.6%
Growth in Realty and Services Business compensates for lower margins in Power, MMH, HE and Hydrocarbon segments Higher depreciation charge due to adoption of new rates under New Companies Act Other Income mainly comprises of Treasury gains 26
Segment Performance Analysis
27
Segment Composition Infrastructure
Power
Metallurgical & Material Handling
Heavy Engineering
Electrical & Automation
Building & Factories
EPC – Coal & Gas
Ferrous
Process Plant Equipment
Electrical Standard Products
Transportation Infra
Thermal Power Plant Construction
Non Ferrous
Nuclear Power Plant Equipment
Electrical Systems & Equipment
Heavy Civil Infra
Critical Piping
Water & Renewable Energy Power T&D
Hydrocarbon
Electrostatic Precipitators
Developmental Projects
Upstream
Roads
Mid & Downstream
Metros
Construction & Pipelines
Metering & Protection Bulk Material Handling
Defence & Aerospace
IT & TS
Financial Services
Information Technology
Ports Technology Services Power
Control & Automation
Others
Retail & Corporate
Shipbuilding
Infrastructure
Realty
General Insurance
Construction & Mining Equipment
Mutual Fund Asset Management
Machinery & Industrial Products
28
Segmental Breakup of Orders – 9M FY15 MMH 3% Power (2%) 9% (1%)
HE 4% (4%)
E&A 4% (4%)
Hydrocarbon 9% (10%) Services 13% (11%) Others 5% (6%)
Infrastructure 53% (62%)
Order Inflow Rs 1078 Bn
Figures in brackets indicate corresponding period of the Previous Year
Power 10% (8%)
MMH 5% HE (7%) 4% (4%)
E&A 1% (2%)
Hydrocarbon 7% (6%) Infrastructure 71% (70%)
Others 2% (3%)
Order Book Rs 2258 Bn 29
Revenue Breakup – 9M FY15 Segmental Breakup E&A Hydrocarbon IT & TS 8% Fin. Services 9% HE 5% 7% 4% MMH Devl. Proj. 4% 7%
Power 5%
Others 7%
Geographical breakup Infrastructure 44%
28% 72%
Domestic
International
30
Infrastructure Segment Revenues & Margin
Amount in ` Bn
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 one-off gains in FY14 31
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 32
Metallurgical & Material Handling (MMH) Segment Revenues & Margin
Amount in ` Bn
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 reduced Order Book and under-utilization 33
Heavy Engineering Segment Revenues & Margin
Amount in ` Bn
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 paucity of orders in process plant sector Margin diminution due to under-utilization and cost overruns in some projects 34
Electrical & Automation (E&A) Segment Revenues & Margin
Amount in ` Bn
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 35
Hydrocarbon Segment Revenues & Margin
Amount in ` Bn
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 36
IT & Technology Services Segment Revenues & Margin
Amount in ` Bn
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 Sales & Marketing staff, compliance costs and increase in onsite staff deployment 37
Others Segment Revenues & Margin
Amount in ` Bn
Realty and Valves Businesses power segment growth EBITDA margin improvement through – Increase in Realty Business Reduction of Shipbuilding losses 38
Developmental Projects Segment Revenues & Margin
Amount in ` Bn
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 39
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: 1 project (71.16 Km) – Under-implementation Project Cost: `170 Bn Transmission Lines: Portfolio: 1 project (482 Km) – Under-implementation Project Cost: `14 Bn Total Project Cost (Dec 2014): ` 567 Bn
Equity Invested (Dec 2014): ` 83 Bn
40
Balance Equity Commitment (Dec 2014): ` 45 Bn
L&T Finance Holdings Q3 FY15 Q3 FY14
% Change
` Billion
9M FY15
11% Networth (Excl. Pref. Cap.)
9M FY14
% Change
65
58
11%
58
FY14
65
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%
3.0%
2.9%
0.1%
3.2%
1.82
1.10
5.30
4.10
29%
5.97
0.1% Gross NPA (%) 66% PAT
Loan assets growth through strong disbursements across segments: Retail B2C: Microfinance, Tractors, 2-wheelers, Housing
Wholesale: Operational Renewable & Road projects MF achieves AUM above Rs. 210 Bn with continuous accretion in equity assets PAT growth due to healthy NIMs and strong fee income 41
Presentation Outline L&T Overview
Business Overview
Group Performance
Sectoral Opportunities & Outlook
42
Infrastructure Segment Presence : Roads and Runways, Tunnels & Spl. Bridges, Ports, Airports, Railways, Metro Rail, Residential & Commercial Buildings, Factories, Water Infrastructure, Solar, Hydro & Nuclear Power, Power T&D – Transmission lines & substation projects
Opportunities:
Transportation – Domestic – Airports, Railways, Dedicated Freight Corridor, Metro Rails, Roads & Bridges International – Airports, Roads & Bridges, Railways (GCC Rail) Urban Infra / Factories Housing, Office Space, Hospitals, Shopping Malls, Hotels, Edu. Institutions and Factory Buildings Water - Prospects for Water supply & distribution / waste water treatment and Effluent Treatment Plants Nuclear Power - possibility of revival Thrust on Solar Power T&D – PGCIL / STU spending in T&D / APDRP funding Opportunities in MENA for T&D
Challenges:
Overall Macro challenges; clarity on Investment plans Land acquisition and environmental clearance Contraction in Govt spends; reduced appetite for PPP from private sector Aggressive Competition
43
Power Segment Presence : EPC Projects in Power Capacity addition (Coal & Gas), Coal based Power Plant Equipment (Boilers, Turbines, ESP, Piping and other Power Auxiliaries)
Opportunities: Base level capacity addition in Coal based Power Plants EPC prospects for gas-fired power plants in Bangladesh Likely pick up in investments
Challenges:
Fuel supply Land acquisition Environment and Forest Clearances Poor financial health of Distribution Cos Aggressive bidding by competition
44
Metallurgical & Material Handling Segment Presence : Construction capabilities for ferrous and nonferrous plants, bulk material handling equipment and systems addressing mining, steel, power, railways and ports sectors
Opportunities: Capacity addition in ferrous metals sector both from private and public units Non Ferrous EPC prospects Power segment currently driving Material Handling business
Challenges:
Land acquisition Environment and forest clearances Policy clarity and legal mandates on iron ore mining Lack of private sector investment appetite 45
Heavy Engineering Segment Presence : Equipment for process plants (mainly for oil and gas), Nuclear power plant equipment, Defense (mainly for navy and army) and Aerospace
Opportunities: Oil & Gas equipment supply opportunities in India, Middle East, Far East, Russia, Europe and USA Nuclear Power Plant equipment in India Interceptor Boats, Ships and Submarines for Indian Navy and Coastguard Artillery guns and other equipment for Indian Army Components for Indian Space Program
Challenges: Shrinking spends on Oil & Gas Reduced prospect base of nuclear power equipment postFukushima and consequent on civil liability overhang Monopoly of Public Sector in Defense orders; very long prospect-to-award timelines 46
Electrical & Automation Segment Presence : Low voltage switchgear, building electricals, metering & protection equipment, low and medium voltage customised switchboards, automation solutions
Opportunities: Electrical switchgear in industrial units Large market for building electricals Electrical switchgear for Agricultural segment Automation solutions in Cement, Oil & Gas, Roads and Power sectors Metering and protection of power distribution networks
Challenges: Subdued industrial capex, muted agricultural growth Competitive intensity Tight liquidity and high borrowing costs for small and medium enterprises (including stockists) 47
Hydrocarbon Segment Presence : Offshore Platforms, Subsea pipelines, Floating Systems, Jackup Rigs, Subsea installations, Onshore Oil & Gas installations, Refineries, Petrochemical and Fertiliser Plants (EPC), Onshore pipelines, Regasification Terminals
Opportunities: Promising International prospects – Upstream / Mid & Downstream Opportunities from ONGC Capex – Upstream / Mid & Downstream Opportunities for Fertilizer EPC Regasification terminals Pipeline jobs in Western India
Challenges:
Long bid-to-award timelines Contraction in domestic E&P investment Aggressive competition in Domestic and GCC markets Project execution in international markets 48
Outlook – Wide circles of influence
49
Thank You
50
Annexure-1: Standalone Like–to-Like Extracts ` Billion Net Sales / Revenue from Operations EBITDA
Q3 FY14 Reported
IES
Q3 FY15 Like-to-Like
Total
% Change
143.88
4.17
139.71
149.95
7%
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)
37%
Other Income
4.33
(0.01)
4.34
6.22
43%
12.41
0.64
11.77
10.60
-10%
Profit after Tax
` Billion Net Sales / Revenue from Operations EBITDA
9M FY14 Reported
IES
9M FY15 Like-to-Like
Total
% Change
365.20
11.59
353.61
380.49
8%
37.66
2.65
35.01
39.99
14%
Interest Expenses
(7.71)
(0.09)
(7.62)
(10.85)
42%
Depreciation
(5.79)
(0.20)
(5.58)
(7.62)
37%
Other Income
13.86
(0.08)
13.94
17.13
23%
27.70
1.89
25.80
29.96
16%
Profit after Tax
IES Business became a separate subsidiary from 1st April, 2014 51
Annexure-2: Group 9M P&L Summary Extracts
` Billion
Revenue from Operations
L&T Parent
IT & TS
Other Fin. Devl. Subsidiaries Services * Projects & Eliminations 9M FY15
L&T Group 9M FY14
% Change
FY14
380.49
55.65
47.17
42.70
113.80
639.82
581.04
10%
851.28
39.98
10.86
6.68
19.65
0.22
77.39
70.09
10%
107.33
(10.85)
(0.03)
0.01
(8.42)
(4.60)
(23.90)
(23.69)
1%
(31.41)
Depreciation
(7.62)
(1.69)
(0.85)
(4.06)
(6.13)
(20.35)
(17.32)
18%
(14.46)
Other Income
17.13
0.18
1.19
0.07
(11.32)
7.26
7.13
2%
9.82
Provision for Taxes
(10.40)
(1.67)
(2.68)
(1.48)
1.35
(14.87)
(17.40)
-15%
(26.28)
Profit After Tax
29.96
7.65
3.65
5.94
26.95
20.62
31%
49.02
EBITDA Interest Expenses
(20.25)
* Includes Insurance Business
52
Annexure 3: Group Balance Sheet Extracts ` Billion
Net Worth (Excl. Pref. Cap.) Minority Interest
L&T Parent 366.5 -
L&T Group Other Fin. Devl. Subsidiaries IT & TS Inc / Services * Projects & Dec-14 Mar14 (Dec) Eliminations 27.7
45.1
88.4
0.0
31.6
10.7
Borrowings
148.2
4.2
395.7
226.1
Net Segment Assets
514.7
31.9
472.4
354.8
(123.9)
403.8
377.1
26.7
5.3
47.5
31.8
15.7
112.8
887.0
803.5
83.5
(5.3) 1,368.5
1,247.2
121.3
* Includes Insurance Business
53
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)
Investments in Fixed Assets (Net)
(15.89)
(53.55)
(16.34)
(49.49)
(Purchase) /Sale of Long Term & Current Investments (Net)
(5.73)
(10.88)
3.20
4.21
Investments / Loans to S&A Cos (Net)
(0.73)
5.67
(0.31)
(2.35)
1.20
3.46
2.16
4.40
(0.74)
1.08
1.08
1.14
Interest & Div. Received from Investments Net Consideration on acquisition / disposal of Subs. Net Cash from / (used in) Investing Activities
(21.89)
(54.21)
Issue of Share Capital / Minority
10.21
16.25
2.82
3.68
Net Borrowings
29.01
94.25
20.69
123.12
(29.17)
(47.87)
(20.33)
(37.21)
Interest & Dividend paid
(8.80)
(38.70)
(12.96)
(37.35)
Net Cash from Financing Activities
1.25
23.93
(9.77)
52.24
Net (Dec) / Inc in Cash & Bank
1.51
0.98
(6.90)
(6.74)
Loans towards financing activities *
* included under Net Cash from operations under statutory financial statements
(10.22)
(42.09)
54