Services segment's contribution powers L&T to change business mix

L&T's defence business has been carved out from heavy engineering vertical and reclassified as defence engineering

Larsen & Toubro (L&T), an engineering major perceived as a proxy to core sector economic activity, is seeing its services portfolio getting strengthened. A closer look at the company’s financial performance in the June quarter reveals it is coming out of its traditional image.

Contribution from the services sector to L&T’s order inflow in April-June 2018 was an impressive 21.8 per cent, second to infrastructure that continued to be high at 42.9 per cent. 

L&T’s order inflow for construction and infrastructure during the June quarter grew 35 per cent year on year, but the number jumped to 37 per cent when combined