l&t investor presentation (reduced file size)

8/6/2019 L&T Investor Presentation (Reduced File Size)

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Investor Presentation

November 2010

LARSEN & TOUBRO LIMITED


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2

This presentation contains certain forward looking statements concerning L&Ts

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. The company does not undertake to make

any announcement in case any of these forward looking statements becomematerially incorrect in future or update any forward looking statements made

from time to time by or on behalf of the company.

Disclaimer

November 2010


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3

Presentation Outline

L&TOverview

BusinessStructure

FinancialPerformance

SectoralOpportunities

& Outlook

November 2010


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4


L&TOverview

BusinessStructure


SectoralOpportunities

& Outlook

November 2010


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L&T At a Glance

5November 2010

Revenues

FY10 Rs.439.7 Bn

Market Cap

Rs 1.218Trillion as on20TH Oct 10

Management

ProfessionallyManagedCompany

CreditRating

AAA Ratingwith Stableoutlook fromCRISIL

Indias largest E&C company with interests inProjects, Infrastructure Development, Manufacturing, IT &

Financial Services

Won the The Economic Times Company of the year 2010award in October 2010


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Both Sensex and L&T Scrip have moved overthe last 10 years, sharply so in the last 5

Sensex L&T (Rs)

November 2010

Strategic Plan Period

6


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Strategic Plan Period

L&T has been a 10-bagger over the last 5 years (46% CAGR)

November 2010 7


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L&T Shareholding Pattern

8November 2010

Govt.Financial

Institutions&

InsuranceCompanies,

32.8%

ForeignHoldings &

GDR,20.2%

Individuals,24.0%

L&TEmployeeWelfare

Foundation,12.3%

MutualFunds,4.5%

DomesticCompanies,

6.2%

As at Sept 30, 2010

Major Shareholders % Shares

Life Insurance Corporation of India 18.90%

L&T Employee Welfare Foundation 12.30%

UTI 8.68%

General Insurance Corp. of India 2.10%

New India Assurance Co. Ltd. 1.23%

Listed with BSE & NSEL&T is one of the most widely held listed companies in IndiaNo promoter holdingsFII-holding: 16.7%Uninterrupted Dividend payment record since 1946;FY 10 Dividend of Rs. 12.5 per share (PY: Rs 10.5)


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Experienced Management Team

9November 2010

A M Naik

Chairman & Managing Director

BE [Mech] Joined L&T in March 1965

Diverse experience ingeneral management, Technology and E&C

K Venkataramanan

President (E&C Projects) BE [Tech] IIT, Delhi

Joined L&T in June 1969

Vast experience in productengineering and projectmanagement

V K Magapu

Sr. Ex. VP (IT & Engineering

Services) BE [Tech] IIT, Madras;

MSc [Mech], Univ. ofCalgary, Canada

Joined L&T in October1985

Vast experience inengineering &information technology

J P Nayak

President (Machinery & IndustrialProducts) Graduate [Mech]; PG Diploma

in Production Engineering

Joined L&T in March 1965

Vast experience inmanufacturing &marketing of construction/industrial equipment & Cement

M V Kotwal

Sr. Ex. VP (Heavy Industry)

BE [Mech], Univ. of Bombay

Joined L&T in October 1968

Vast experience in HeavyEngineering businessincluding manufacture ofcritical equipment forNuclear Power & SpaceResearch Program

Y M Deosthalee

Chief Financial Officer

B.Com, LLB, ACA

Joined L&T in February1974

Vast experience in thefields of Finance, InfotechBusiness & GeneralManagement

K V Rangaswami

President (Construction) BE [Tech] IIT, Madras

Joined L&T in April 1967

Vast experience inconstruction industry,Design Engineeringand Ready Mix Concretebusiness

Ravi Uppal

Sr. Ex. VP (Power)

B.Tech (IIT, Delhi)

Joined L&T in January 2009

Vast experience in ThermalPower Business


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Corporate Governance

10November 2010

Four-tier Governance Structure

L&Ts essential character revolves around values based on transparency,

integrity, professionalism and accountability


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Journey Towards Excellence

11November 2010

1938 -1950s

1938: Formed as apartnership

1952: Listed

Started with trading &making dairyequipment,fabrication services,war-time ship repair

Entered constructionbusiness through ECC

Entered intoswitchgear business in

1950s

1960s -1980s

Emerges as one of thelargest & best erection

contractors

Starts producing tractorundercarriages, valves,welding components

Commencedmanufacturingearth-movingequipment, 1976

Entered into thecement business inearly 1980s

Established afabrication facility andopen yard on thewaterfront at Hazira

1990s -2005

Tied up with globaltechnology majors forengineering in powerand hydrocarbonsectors

Mid 90s: Entered into

IT & Financialservices,

Emerges as Indiaslargest integrated E&Ccompany

Geared up concessionsbusiness by formingIDPL in 2001

Demerged cementbusiness

Entered into JVs andacquisitions forelectricalproducts, upstreamengineering and high-end electronics

2006 -2010

JVs with MHI for super criticalpower plant equipment

manufacturing Entry into Railways sector

Initiated capacity expansion

Commenced shipbuilding

MoUs with Westinghouse, AECAtomstroyexport, GE-Hitachi &Rolls Royce for Nuclear Power

JV with NPCIL for setting upheavy forging unit for Nuclearpower and process plant sectors

Divested non - core businesses(glass, tractor, dairy plantmanufacturing, RMC & PDP)

Scaled up Developmental

projects business. Foray intopower generation

Acquisition of Tamco, aswitchgear company in Malaysia

Expansion of Financial servicesinto L&T InfrastructureFinance, General Insurance &Mutual fund business.

Signed MOU with Boeing & EADS


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One of Asias largest vertically integrated E&C Company

ENGINEERING &PROJECTS

DESIGN &CONSULTANCY

MANUFACTURING

& FABRICATION

EPC

PROJECTS

CONSTRUCTION

Single point responsibility for turnkey solutions 12

E&C Delivery Platform

November 2010


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13

L&Ts Sector-wide Presence

Buildings & Factories

Roads & Bridges

Ports & Harbours

Airports

Railways & MassRapid Transport

Water Projects

Infrastructure

November 2010


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Power Generation(Gas and Coal Fired) :EPC, Equipment Mfg & BOP

Nuclear PowerPlant Construction

Hydel Power

Transmission &Distribution

Coal Gasifiersand other PowerPlant Auxilliaries

Power

Nuclear PowerPlant EquipmentNovember 2010


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Hydrocarbon-Upstream

Refineries &Petrochemicals

Pipeline &Storage Facilities

Process PlantEquipment

Hydrocarbon

November 2010

Fertiliser PlantEquipment & EPC


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AerospaceMinerals & Metals

DefenceMaterial Handling

Systems

Process Aerospace &Defense

November 2010


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Switchboards Low and

Medium Voltage

Control & Automation Electronic Energymeters

Switchgear - Low

Voltage

Electricals & Electronics

November 2010


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Hydraulic Excavators Backhoe Loaders &Vibratory Compactors

IndustrialValves

Rubber & PlasticProcessing Machinery

Machinery & Industrial Products

Welding Products &Cutting Tools

November 2010


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L&T Infra Finance

L&T Infotech Engineering andDesign Services

L&T Finance, MFAMC and Gen.

Insurance

Service Industry

November 2010


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Ports

Urban Infra Power Generation

Roads

Developmental Projects

November 2010

Metro Rail

Airports


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Nation-wide Network & Coverage

Unmatched Nationwide

PresenceCampuses in 14 locations

Offices in 19 cities

Management Development

Centre - Lonavala

Knowledge City VadodaraLogistic Advantages - Ability

to optimize resources at

various locations

November 2010


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Reputed customerslow customer credit risk

Repeat business from customersstrong indicator of execution capabilities

22

Quality Customer Mix

Indian Coastguard

GSRTC

November 2010

MIAL
http://images.google.co.in/imgres?imgurl=http://www.topnews.in/files/GNFC.jpg&imgrefurl=http://www.topnews.in/gujarat-narmada-valley-fertilizers-spend-rs-3000-crore-capacity-expansion-plans-259265&usg=__JPxhfXk0CGgZf1OdVpn2JN-3VBo=&h=94&w=111&sz=31&hl=en&start=4&itbs=1&tbnid=JedIdL4hvulsWM:&tbnh=73&tbnw=86&prev=/images?q=GNFC&hl=en&rlz=1T4GFRE_enIN361http://images.google.com/imgres?imgurl=http://www.plant-techgroup.com/images/Bulletin/mrpl_logo.jpg&imgrefurl=http://www.plant-techgroup.com/Bulletin.html&h=70&w=40&sz=3&tbnid=UJpnhlOOowEJ:&tbnh=66&tbnw=37&hl=en&start=2&prev=/images?q=mrpl_LOGO&svnum=10&hl=en&lr=http://www.iocl.com/corporatelogo.aspxhttp://www.nhpcindia.com/index.aspxhttp://images.google.com/imgres?imgurl=http://www.powergridindia.com/pgnew/images/LOGO.gif&imgrefurl=http://sarkari-naukri.blogspot.com/2006_09_13_archive.html&h=98&w=82&sz=3&hl=en&start=46&um=1&tbnid=BnpsCalbfcm94M:&tbnh=81&tbnw=68&prev=/images?q=Madhya+Pradesh+Power+Trading+Company+Limited,+Jabalpur&start=40&ndsp=20&svnum=10&um=1&hl=en&sa=Nhttp://e/ibd/applications/praxis/pdmstemp/http://www.maersk.com/enhttp://www.saudiform.com/index8.html


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Alliances

Pre qualifications

Note: Some of these are project specific alliances & pre qualifications

Joint Ventures

23

Multiple Alliances & Joint Ventures

November 2010

Befula Investments
http://www.atlpk.com/images/howden.gifhttp://www.rolls-royce.com/http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/en/b/b4/Ramboll_logo_Cyan_(RGB).gif&imgrefurl=http://en.wikipedia.org/wiki/Ramboll&usg=__Hql11411xKWMp5XNqSNeojeKGFY=&h=203&w=978&sz=4&hl=en&start=1&um=1&tbnid=PbtsuJdujmxJAM:&tbnh=31&tbnw=149&prev=/images?q=Ramboll+-+logo&hl=en&sa=N&um=1http://www.mhi-ir.jp/indexe.htmlhttp://www.chiyoda-corp.com/en/http://www.flowserve.com/eimhttp://images.google.co.in/imgres?imgurl=http://www.cns-snc.ca/CNS_Conferences/CNS2008/Logos/GE-Hitachi.gif&imgrefurl=http://www.cns-snc.ca/CNS_Conferences/CNS2008/CNS2008_main.html&usg=__mcFsqBDY8fon1DH2uU3NkCVDX3o=&h=247&w=529&sz=4&hl=en&start=3&um=1&tbnid=rAEk7fUbUgcu8M:&tbnh=62&tbnw=132&prev=/images?q=GE+Hitachi+Nuclear+Energy&hl=en&rlz=1G1GGLQ_ENIN329&sa=G&um=1http://images.google.co.in/imgres?imgurl=http://www.actionplan.gc.ca/grfx/initiatives/EAP-Inits-0120-eng.jpg&imgrefurl=http://www.actionplan.gc.ca/includes/send_friend_eMail_print.asp?langFlg=e&URL=/initiatives/eng/index.asp&mode=7&initiativeID=120&usg=___2kOBdJU2acxW3DJH2dc5HIQJ7U=&h=304&w=569&sz=60&hl=en&start=1&um=1&tbnid=UaHT5g6hGUmUrM:&tbnh=72&tbnw=134&prev=/images?q=Atomic+Energy+of+Canada+Limited+-+logo&hl=en&rlz=1G1GGLQ_ENIN329&sa=N&um=1http://images.google.com/imgres?imgurl=http://www.cee.poli.usp.br/semop/images/logo_voith_siemens.jpg&imgrefurl=http://www.cee.poli.usp.br/semop/apoio.html&usg=__qYvU88jJruD06waSrnShc1PI6R0=&h=204&w=1166&sz=94&hl=en&start=3&um=1&tbnid=mEzKswzI9ump3M:&tbnh=26&tbnw=150&prev=/images?q=voith+siemens&hl=en&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF&sa=N&um=1http://images.google.com/imgres?imgurl=http://www.biw.fhd.edu/alumni/2002/sogerer/bilder/hochtief.jpg&imgrefurl=http://www.biw.fhd.edu/alumni/2002/sogerer/praktikum.htm&h=194&w=186&sz=7&hl=en&start=1&um=1&tbnid=h8kZt_adokzJrM:&tbnh=103&tbnw=99&prev=/images?q=Hochtief&svnum=10&um=1&hl=en&sa=Ghttp://images.google.com/imgres?imgurl=http://local.ans.org/virginia/3dSTW/PIX/westinghouse.jpg&imgrefurl=http://local.ans.org/virginia/3dSTW/2007/sponsors.html&usg=__FvfG_0-pVZxlkKR83ql1VJQSMPg=&h=381&w=1426&sz=191&hl=en&start=3&um=1&tbnid=c21mDULlJrpwPM:&tbnh=40&tbnw=150&prev=/images?q=westinghouse&hl=en&rls=com.microsoft:*:IE-SearchBox&rlz=1I7ADBF&sa=N&um=1http://www.secc.co.kr/e_secc/index.asphttp://images.google.co.in/imgres?imgurl=http://www.esi2.us.es/prima/Imagenes/snam_logo.gif&imgrefurl=http://www.esi2.us.es/prima/SNAMPROGETTI1.html&usg=__j3BfVUpqfN2ASk2FoBihKZCqA4A=&h=265&w=646&sz=15&hl=en&start=1&um=1&tbnid=d7tlg5-Es90_YM:&tbnh=56&tbnw=137&prev=/images?q=Snamprogetti+-+logo&hl=en&lr=&rlz=1G1GGLQ_ENIN329&sa=N&um=1http://www.bechtel.com/default.htmhttp://images.google.com/imgres?imgurl=http://cci-inspection.com/site/images/stories/shell%20logo.jpg&imgrefurl=http://cci-inspection.com/site/index.php?option=com_content&task=view&id=23&Itemid=52&usg=__ravWagK7Vz_im4UarlRaZsuAQAU=&h=450&w=600&sz=35&hl=en&start=1&um=1&tbnid=Cpl4pVenoC-EtM:&tbnh=101&tbnw=135&prev=/images?q=SHell+-+logo&hl=en&sa=G&um=1http://images.google.com/imgres?imgurl=http://www.polarflame.com/uploads/images/Lurgi_Logo_F_RGB_300.jpg&imgrefurl=http://www.polarflame.com/&usg=__4sHX2ljGzpqMHsGAQvSP9xYdFCc=&h=343&w=850&sz=49&hl=en&start=1&um=1&tbnid=zozpcG1uQhUJhM:&tbnh=59&tbnw=145&prev=/images?q=lurgi+inc+-+logo&hl=en&sa=N&um=1http://images.google.co.in/imgres?imgurl=http://www.isahof2009.com.mx/images/Logo%20Haldor%20Topsoe.jpg&imgrefurl=http://www.isahof2009.com.mx/index-2.html&usg=__ndsB3U3-5Nli8c5EzcIECwnRoBE=&h=90&w=200&sz=4&hl=en&start=3&um=1&tbnid=bQRBExJ5toWJ6M:&tbnh=47&tbnw=104&prev=/images?q=Haldor+Topsoe+-+logo&hl=en&rlz=1G1GGLQ_ENIN329&sa=G&um=1http://images.google.co.in/imgres?imgurl=http://www.zawya.com/pr/images/shaw_logo1_2009_03_26.jpg&imgrefurl=http://www.zawya.com/Story.cfm/sidZAWYA20090326111445/Shaw%20Awarded%20Contract%20to%20Continue%20Work%20on%20Sonatrach%20LPG%20Recovery%20Facility%20in%20Algeria%20&usg=__tMk69E5z6zDCUXKIGLcdESAockQ=&h=189&w=258&sz=10&hl=en&start=1&um=1&tbnid=evD2GHoXkPVnCM:&tbnh=82&tbnw=112&prev=/images?q=Shaw+Energy+&+Chemicals+Ltd,+USA+-+logo&hl=en&rlz=1G1GGLQ_ENIN329&sa=N&um=1


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The L&T Sustainability Report 2009

is a GRI Checked Application Level A+ report.

Release date : November 2009* Conditions Apply.

24

L&Ts Sustainability Reporting

One of the 28 Indian companies with Sustainability Reports available in public domain

First Indian company in Engineering & Construction Segment

Reported on all Core Performance Indicators (49)

Externally assured for authenticity of the information presented

Note: L&Ts Sustainability Report 2009 is available for download on our corporate website: www.larsentoubro.com

November 2010


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November 2010 25

Sustainability Conserving Natural Resources

Note: GJ represents Giga Joules

3,980,7813,512,844 15,099

16,893

272,028252,305

79,16910,224 32,793

366,742

12%

8%

12%


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Sustainability Our People & Creating Social Capital

Thrust Areas Activities Beneficiaries

1. Education Constructing Schools, Computers & ScienceLaboratories, pre-school centers and vocational

training institutes. Providing teaching aids andconducting educational activities

47,000+

2. Employees Volunteering(400+ Volunteers)

Blood donation camps, assistance during naturalcalamities, fund raising, etc.

3. Mother & Child Health Establishing health centers, Reproductive healtheducation, camps on Health check-up (women &

children), Cataract, anemia, malnutrition and

other health areas

172,000+

Several


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L&TOverview

BusinessStructure


SectoralOpportunities& Outlook

November 2010


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LARSEN & TOUBRO LIMITED

ENGINEERING &CONSTRUCTION

ELECTRICAL &ELECTRONICS

MACHINERY &INDUSTRIAL PRODUCTS

INTEGRATEDENGINEERING

SERVICES

INDUSTRIALMACHINERY &

PRODUCTS

CONSTRUCTION &MINING

EQUIPMENT

BUILDINGS &FACTORIES

INFRASTRUCTURE

METALLURGICAL,MATERIAL HANDLING

& WATER

ELECTRICALPROJECTS & GULF

OPERATIONS

HEAVYEQUIPMENT &

SYSTEMS

SHIPBUILDING

HEAVYINDUSTRY

UPSTREAM

MID &DOWNSTREAM

POWERDEVELOPMENT &CONSTRUCTION

RAILWAY PROJECTS EPC POWER

E&C PROJECTS

ELECTRICAL &AUTOMATION

CONSTRUCTION

28

L&Ts Business Structure

November 2010


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29

Subsidiary & Associates Portfolio

L&T Group

Domestic

Services

Fin.Serv.

ITServices

Eng.

&

Design

Devl.SPVs

Manu.

Power

Power Devl.&

Equipment

Manu.

International

Projects

Manu.

&Fabrication

November 2010


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L&TOverview

BusinessStructure



November 2010


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November 2010

FY 06 FY 07 FY 08 FY 09 FY 10

224306

420

516

696

Order Inflow

Rs.

Billion

31

Sustaining Growth

FY 06 FY 07 FY 08 FY 09 FY 10

147 176

249

336 367

Net Sales

Rs.

Billion

FY 06 FY 07 FY 08 FY 09 FY 10

249369

527

703

1002

Order Book

Rs.

Billion

FY 06 FY 07 FY 08 FY 09 FY 10

8.6

13.9

21.0

27.1

31.9

Recurring PAT

Rs.

Billion


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Performance Highlights Q2 FY11

32

OrderInflowup by11%

Sales upby 18%

OrderBook upby 41%

EBITDAMarginsup by 20bps

RecurringPAT upby 22%

November 2010


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Performance Highlights H1 FY11

33

OrderInflowup by29%

Sales upby 12%

OrderBook upby 41%

EBITDAMarginsup by 90bps

RecurringPAT upby 19%

November 2010


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31%

28%

37%

47%

15%

8%

12%

9%

5%

8%

Infrastructure Power Hydrocarbons Process Others

Order Book:` 1153.93 Bn

Order Inflow:` 360.90 Bn

Infrastructure Roads & Bridges Ports & Harbours Airports Railways Buildings &

Factories Urban Infra Water

Power Generation Equipment Electrification /

Transmission &Distribution

Hydrocarbons Upstream Mid &

Downstream Pipelines Fertilisers Valves

Process Minerals &

Metals Bulk Material

Handling

Others Shipbuilding Defense &

Aerospace Construction &

Mining Eqpt. Electrical &

Electronic Products Technology Services

Sectoral Break-up

34

Order Inflow & Order Book H1 FY11

November 2010


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35

Order Inflow Order Book

94% 94%

5% 4%

1% 2%

Geographical Break-up

Domestic

Middle East

Others

Order Inflow Order Book

48%41%

24%44%

28%15%

Customer Profile

Private

Public (Incl. PSUs)

Devl. Projects (L&T)

Order Inflow & Order Book H1 FY11

November 2010


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3636

Performance Summary - Topline

Order Inflow growth led by Power and Infrastructure sector

Execution pickup seen in Q2; Yearly sales accrual skewed towards

H2 in line with Order inflow pattern in FY10

BTG orders have started contributing to revenue

Slowdown in Middle East impacts export orders

Q2 FY11 Q2 FY10%

ChangeRs. Billion H1 FY11 H1 FY10

%

ChangeFY10

204.64 183.65 11% Order Inflows 360.90 279.36 29% 695.72

Order Book 1,153.93 816.23 41% 1,002.39

92.61 78.66 18% Net Sales 170.96 152.29 12% 366.75

9.74 17.33 --- Exports 20.21 32.65 64.46

0.70 0.55 Other Operational Income 1.16 0.99 3.60

93.31 79.21 18% Total Net Revenues 172.12 153.28 12% 370.35

November 2010

P f S O i l C


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3737

Performance Summary Operational Costs

Net reduction in MCO (% of Sales) due to higher proportion of

margin yielding sales

Staff costs step-up due to increased manpower and compensation

revision

Increase in SGA primarily due to provisions for cost escalation and

exchange variation

` Bn % to Total Net

Revenues

` Bn % to Total Net

Revenues

` Bn % to Total Net

Revenues

` Bn % to Total Net

Revenues

69.85 74.8% 60.47 76.3% Manf., Cons. & Opex (MCO) 129.46 75.2% 117.80 76.8%

8.29 8.9% 7.10 9.0% Staff Costs 13.92 8.1% 12.21 8.0%

5.11 5.5% 3.26 4.1% Sales, adm. & other Exp. 8.50 4.9% 6.58 4.3%

83.25 89.2% 70.83 89.4% Total Operational Costs 151.88 88.2% 136.59 89.1%

Q2 FY11 Q2 FY10

Particulars

H1 FY11 H1 FY10

November 2010

P f S P fit bilit


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3838

Performance Summary Profitability

Margins improvement due to favourable job mix

Increased interest cost due to higher borrowing levels and rise in interest rates

Increase in Other Income primarily occasioned by increase in treasury income

and S&A Co. dividend

Extra-ordinary item in Q2 FY11 represents Satyam provision reversal

Q2 FY11 Q2 FY10%

Change` Billion H1 FY11 H1 FY10 %

ChangeFY10

10.06 8.38 20% EBITDA 20.24 16.69 21% 48.16

10.8% 10.6% 0.2% EBITDA Margins 11.8% 10.9% 0.9% 13.0%

(1.94) (1.26) 53% Interest Expenses (3.35) (2.36) 42% (5.05)

(1.21) (1.00) 21% Depreciation (2.35) (1.94) 21% (4.15)

3.82 2.12 Other Income 5.97 4.36 9.10

(3.79) (2.56) Provision for Taxes (6.91) (5.29) (16.21)

6.94 5.68 22% PAT before Exceptional Items 13.60 11.46 19% 31.85

0.71 0.12Extraordinary & Exceptional Items

(Net of tax) 0.71 10.32 11.91

7.65 5.80 32% Profit after Tax 14.31 21.78 -34% 43.76

November 2010

P f S B l Sh t


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3939

Performance Summary Balance Sheet

Gross D/E: 39%Capex Outlay:`7.59 Bn

Support to growth ventures fundedthrough sale of current investmentsChange in Net Current Assets:

Segmental NWC increased from7.6% to 9.1% (% of Sales)Payment of dividend :`7.53 Bn

Sep-09 ` Billion Sep-10 Mar-10 Increase /(Decrease)

148.27 Net Worth 199.41 183.12 16.29

69.43 Loan Funds 77.24 68.01 9.23

0.60 Deferred Tax Liabilities (Net) 0.84 0.77 0.07

218.30 Total Sources 277.49 251.90 25.59

56.21 Net Fixed Asset 69.79 63.66 6.13

55.77 Current Investments 66.41 79.65 (13.24)

53.97Invt./ICDs/Loans & Advances to

S&A Cos

88.78 76.79 11.99

3.05 Other Investments 3.02 5.49 (2.47)

49.30 Net Current Assets 49.49 26.31 23.18

218.30 Total Applications 277.49 251.90 25.59

Support to S&A Cos includes:L&T Power Development `4.35 Bn

L&T Power (MHI JVs) -`1.53 BnL&T Finance & Infra Finance -`1.73 BnL&T General Insurance -`1.46 BnRoad SPVs -`1.21 BnL&T IDPL -`1.18 Bn

November 2010

S l B k H1 FY11


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Engineering&

Construction83.9%(85.2%)

Electrical &Electronics

7.5%(7.7%)

Machinery &

IndustrialProducts6.9%(6.0%)

Others1.7%(1.1%)

Net Revenues

Engineering&

Construction80.0%(78.8%)

Electrical &Electronics

7.4%(9.7%)

Machinery &IndustrialProducts10.3%(10.2%)

Others2.3%(1.3%)

EBITDA

Figures in the bracket indicate correspondingperiod of the Previous Year

40

Segmental Break-up H1 FY11

November 2010


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Engineering & Construction Segment

Order Inflows show increasing signs of elasticity in prospect to award

timelines

Export orders adversely affected by shifting of award deadlines in Middle

East (mainly in T&D and Hydrocarbon sectors)

Execution pickup seen in construction and hydrocarbon contracts under

execution

Growth in margins due to execution efficiencies

Q2 FY11 Q2 FY10%


ChangeFY10

188.80 170.04 11% Total Order Inflows 327.26 253.77 29% 638.99

1.91 16.19 --- Exports 16.52 20.57 29.31

Total Order Book 1,130.30 798.57 42% 983.86

--- Exports 64.01 97.92 71.28

78.87 66.80 18% Total Net Revenues 144.43 130.63 11% 318.42

7.72 15.17 --- Exports 16.23 28.67 56.26

9.92 7.58 31% EBITDA 18.86 15.17 24% 43.39

12.6% 11.3% 1.2% EBITDA Margins 13.1% 11.6% 1.4% 13.6%Net Segment Assets 73.34 71.08 3% 62.91

November 2010

El t i l & El t i S t


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Electrical & Electronics Segment

Q2 Sales impacted by project deferment in Engineered-to-Order

business

Margins adversely affected by input cost rise and competitive

pricing pressures

Q2 FY11 Q2 FY10%


ChangeFY10

6.15 6.58 -7% Total Net Revenues 12.95 11.84 9% 26.940.54 0.78 ---Exports 1.07 1.29 2.74

0.93 1.13 -17% EBITDA 1.75 1.87 -6% 4.23

15.2% 17.1% -2.0% EBITDA Margins 13.5% 15.8% -2.2% 15.7%

Net Segment Assets 11.57 11.30 2% 11.32

November 2010


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Machinery & Industrial Products Segment

Growth in Sales led by increased offtake in Industrial valves and

Mining & Construction equipment business

Margins affected by higher input costs and lower exportsIncrease in Net Segment Assets driven by higher Capex

Q2 FY11 Q2 FY10%


ChangeFY10

6.70 4.92 36% Total Net Revenues 11.93 9.12 31% 21.350.31 0.55 ---Exports 0.62 1.13 2.06

1.23 0.97 27% EBITDA 2.43 1.96 24% 4.71

18.4% 19.7% -1.3% EBITDA Margins 20.4% 21.5% -1.1% 22.1%

Net Segment Assets 2.72 1.94 41% 2.24

November 2010


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Consolidated Financials FY10

November 2010

C lid t d P&L St t t


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Consolidated P&L Statement

L&T

FY10 FY10 FY09 % Change

370.35Total Net Reveunes (Net Sales + Other

Operational Income)439.70 405.11 9%

48.16 EBITDA 64.39 50.24 28%

13.0% EBITDA Margins 14.6% 12.4%

(5.05) Interest Expenses (6.92) (5.28)

(4.15) Depreciation (9.79) (7.28)

9.10 Other Income 7.60 5.76

(16.21) Provision for Taxes (18.66) (14.23)

31.85 PAT (before Exceptional Items) 36.62 29.21

- Share of profits in Associate Cos. 1.06 0.51

- Minority Interest 0.29 0.35

31.85PAT after Minority Interest (before

Exceptional Items)37.97 30.07 26%

11.91Extraordinary & Exceptional Items (Net

of tax & Minortiy Interest)16.54 7.82

43.76 Profit After Tax 54.51 37.89 44%

Rs BillionL&T Group

November 2010

C lid t d B l Sh t


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Consolidated Balance Sheet

November 2010

L&T

Mar-10 Mar-10 Mar-09 Inc/(Dec)

Net Worth:

- Financial Services 20.73 13.27 7.46

- Dev. Projects 29.34 19.54 9.80

183.12 Others 159.84 107.06 52.78

- Minority Interest 10.88 10.59 0.29

Loan Funds:

- Financial Services 95.05 62.16 32.89

- Dev. Projects 55.75 43.23 12.52

68.01 Others 75.76 78.61 (2.85)

- Def. Payment Liab. (Devl. Proj.) 19.51 19.70 (0.19)

0.77 Deferred Tax Liabilities (Net) 1.53 1.31 0.22

251.90 Total Sources 468.39 355.47 112.92

63.66 Net Fixed Asset 98.51 74.12 24.39

79.65 Current Investments 85.60 52.18 33.42

76.79Invt./ICDs/Loans & Advances to

S&A Cos

5.06 4.89 0.17

5.49 Other Investments 8.62 11.03 (2.41)

26.31 Net Current Assets 63.62 54.76 8.86

- Dev. Business Assets 97.63 87.39 10.24

-Loans towards financing

activities109.35 71.10 38.25

251.90 Total Applications 468.39 355.47 112.92

Rs. BillionL&T Group


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Performance of Key Subsidiaries

November 2010

L&T I f t h


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L&T Infotech

Sequential growth continues. Healthy growth in margins due to betterutilisation

4.735.65

4.69

5.88

H1 FY10 H1 FY11

Total Income

Q1 Q2

9.42

11.53

22%9.42 22%

0.61

0.79

0.57

0.78

H1 FY10 H1 FY11

Profit After Tax

Q1 Q2

1.18

1.57

32%

Amount in ` Bn

November 2010


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November 2010 49


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Total Equity Invested (Sept 2010):`34 Bn

Total Project Cost (Sept 2010):`570 Bn

Total Equity Commitment (Sept 2010):`114 Bn

Roads & Bridges15 projects(7 operational)5682 Lane KmProj. Cost:` 132 Bn

Power3 projects2259 MWProj. Cost:` 157 Bn

Ports3 projects45 MTPAProj. Cost:` 53 Bn

Metro Rails1 project71.16 Km Metro rail

Urban Infra14 projects23 Million sq.ftProj. Cost:` 78 Bn



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L&TOverview

BusinessStructure



November 2010

Sectoral Opportunities Infrastructure


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Sectoral Opportunities - Infrastructure

Opportunities

Roads & Bridges: Highways & Mega road projects Metros: Underground & Elevated Metros in Tier I & II cities Monorail expansion in Mumbai Railways: Rolling Stock facilities, Station

Development, Private Sector Railway Sidings and DFC Water: Water Supply & Sanitation/ Desalination projects Real Estate & Office space: Metro Cities

Opportunities in Healthcare, Education and Tourism Infra

Environment Increased budgetary support Slowdown in pace of NHAI awards Thrust on PPP Water shortages Real Estate Pick-up

November 2010

Sectoral Opportunities Power


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Sectoral Opportunities - Power

Opportunities EPC, BTG & BOP projects for Coal Based power plants EPC projects for Gas Based Power plants Nuclear power plant construction and equipment supply

(Reactors, Steam Generators, Forgings, Civil & others) EPC projects for T&D in India (Including PPP) and GCC

Environment

Power deficit and increasing energy requirements Governments plans to speed up Coal linkages Thrust on Supercritical power plant technology Government favoring domestic BTG manufacturers Chinese Competition active in private sector space Thrust on Nuclear, Hydel & Solar Power (clean energy) BOP & T&D capex slated to increase

November 2010

Sectoral Opportunities Hydrocarbon


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Sectoral Opportunities - Hydrocarbon

Opportunities Upstream jobs: Process Platforms, Wellhead

platforms and subsea pipelines

Module supply opportunities in Internationalmarkets

Residue Upgradation projects in Refineries EPC jobs for Petrochemicals Construction and pipeline jobs Rigs & FPSOs in Brazil, Middle East and Domestic Ammonia Expansion Projects

Environment Crude Price stability and demand Hydrocarbon Capex has become lumpy Intense Domestic and International Competition Middle East awards getting deferred Small signs of pick-up in FPSO and Rig market Fertilizers:

Increase in demand for Food grains Availability of Natural Gas as feedstock

November 2010

Sectoral Opportunities Process


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Sectoral Opportunities - Process

Opportunities EPC projects for capacity expansion plans for both

ferrous and non-ferrous

Domestic investment in Power, Mines, Ports,Metals industry to provide opportunities forMaterial Handling Systems

Environment Minerals & Metals

India is net importer of steel Demand outpacing capacity Capacity expansion plans on anvil

Bulk Material Handling Growth in Mining sector Demand from power sector in tandem with

BOP Increase in Port Traffic

November 2010


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Bucket Wheel Excavator

Dam

Steam Generators for a

nuclear power plant

Khandala Lonavala Bypass

Reactor Vessel for anuclear power plant

Bahai Temple, Delhi

some of our landmark offerings

l&t investor presentation (reduced file size)

Documents