L&T braces for slowdown

Engineering and construction major Larsen and Toubro (L&T) on Friday said it was all set to brace for a slowdown in the market and economy.

“The macro environment is characterised by uncertainty and volatility, and we experienced prospect-to-award timelines. Nevertheless, the execution schedule remains largely on track,” Chairman A M Naik told the company’s shareholders at its 66th annual general meeting.

Naik also said things had started moving now with projects being awarded in the highways sector, and more of these in the pipeline.

The company’s high-grade forging capacity in Hazira, Gujarat, to be commissioned early next year, is also facing uncertainty due to a reduction in export orders from nuclear projects after the Fukushima disaster in Japan early this year. “It will be a huge challenge to fill up the shop for the next two years,” he said.

The company, which is expecting a nuclear code on forgings to come up in 2012, is already thinking about working on forgings in the steel, power, and other sectors. Its forging foundry is a joint venture with the Nuclear Power Corporation of India, where L&T holds a 74 per cent stake.

“We have to talk to customers in the steel industry, and work on the orders,” he said.

Naik backs Anna movement
L&T Chairman A M Naik on Friday praised social activist Anna Hazare and his cause for corruption. “The cause he has taken up is very appropriate and he is an honest person who is spreading awareness on corruption,” Naik told reporters at the company’s annual general meeting. However, he also said any change in this regard should come into the ambit of the Constitution and Parliament.