Larsen and Toubro (L&T) has an order book of around Rs 3.3 lakh crore that provides good visibility. Further, the management has indicated growth of low to mid-teens for FY22. However, they do caution that there are many unknowns ahead such as COVID, inflation, technologically challenging projects etc., R Shankar Raman, Whole Time Director & CFO, L&T, discussed the outlook.
“We are looking at FY22 as a growth year over FY21,” he said in an interview with CNBC-TV18.
“We do expect to benefit from the large order book that we have started the current year with. We expect to do better on a quarter-on-quarter (QoQ) basis as compared to the last year, same quarter,” he added.
“By July, we expect things to inch back to normal, and like last year, we will again have a year of two halves – the second half being a stronger period than the first half,” he shared.
“The good part of this wave was, unlike last time, when almost 70-80 percent of our workforce migrated back to their hometowns, this time only about 20-25 percent migrated, 75-80 percent stayed back,” he stated.
According to Raman, this helped the company. “The way things are panning out now, the vaccination rates are improving, the infection rate is coming down, and the trend seems to suggest that the worst is behind us and we would like to believe that,” he mentioned.
For the full interview, watch the accompanying video.