L&T's infrastructure business loses ground to IT & technology segment

There has been a rapid rise in the contribution of IT and technology in L&T's consolidated revenues

Larsen & Toubro, one of India’s biggest conglomerates, still describes itself as an engineering and infrastructure company but the Mumbai-based company is largely dependent on its IT & technology services subsidiaries such as L&T Infotech, L&T Technology, and Mindtree to grow its revenues and profits.

Infrastructure segment revenues have been stagnant for close to five years now and it is the same for the company’s traditional businesses such as hydrocarbon projects, power, development projects, heavy engineering, and financial services (see the adjoining chart).

The defence engineering business has grown slightly in recent years, but it accounts for 2.4 per cent of L&T