India's economic recovery 'delayed' not 'derailed': L&T chief A M Naik

Says given the scale of India's infra deficit, the company is optimistic about govt's intent to complete projects as envisaged in the National Infrastructure Pipeline

Staying cautiously optimistic amid the ongoing pandemic, with the country's gross domestic product (GDP) regaining positive, Larsen & Toubro’s outlook for FY22 is that the economic recovery is ‘delayed’ and not ‘derailed’.

Laying thrust on the infrastructure sector, A M Naik, group chairman at Larsen & Toubro today said given the scale of India’s infrastructure deficit, the company is optimistic about the Government’s intent to complete projects as envisaged in the National Infrastructure Pipeline. "...your company is poised to capitalize on these opportunities as they emerge," he added.

“Since infrastructure investments serve twin benefits of improving productivity and generating employment, we believe that the underlying macro drivers for investments in India remain intact,” said Naik.

He was speaking at L&T’s 76th annual general meeting held virtually today.

The company continues to focus on shareholder value creation by divesting non-core assets, capturing cost efficiencies and leveraging technology for productivity gains, said Naik.

Alongside, the company has recommended a final dividend of Rs18 per share for the year FY21, which is in addition to the Rs 18 per share of special dividend declared earlier during the year.

The company’s strategically diversified business portfolio, geographical dispersion, robust balance sheet and strong order book are reliable signposts to a brighter future, he said.

Regarding the company’s international business, currently, the Middle East region constitutes 61 percent of the international order book of Rs 68,773 crore. In addition to this, The company’s technology services businesses are growing in double digits through LTI, LTTS and Mindtree.

“The company has gradually expanded its international footprint through geographic dispersion as a conscious de-risking strategy. While the Middle East region has remained an area of focus, the company has turned its attention to many countries in Africa as well as South East Asia,” said Naik.

Pertaining to sustainable development, Naik informed that the Group is over eight decades old and has been at the forefront of many sustainability initiatives, long before it was mandated by law.

“In other words, we internalized the spirit behind ESG (Environmental, Social, and (Corporate) Governance) and were among the early companies who turned precepts into practice,” said Naik.

Providing better access to potable water, an improved level of sanitation and facilities for health, education and skill building are some of initiatives ingrained into the system early on.