Larsen & Toubro chairman AM Naik on Thursday said the strong anti-China sentiment in India and around the world is a possible game changer for the domestic industry.
Addressing the shareholders at the company’s 75th annual general meeting (AGM) through audio visual mode, Naik said: “To leverage these trends and harness them for productive purposes, we need to move beyond kneejerk responses and draw up a long-term strategy with a time-bound plan for implementation.”
He further said it is essential that an enabling ecosystem for growth is created. “Reforms are urgently needed in many sectors, including land acquisition and labour. The financial system is also in urgent need of attention. In tandem, the administration would do well to streamline processes and accelerate the pace of decision-making,” he said.
Addressing shareholder queries later, L&T MD and CEO SN Subrahmanyan said the impact of Covid-19 on the company’s business has been “serious” because for the first three months of the financial year, the company has hardly done any work. He said the impact is to the tune of Rs 1,600-1,700 crore, as the company could not work, but the overheads and various other fixed costs were on the books.
Subrahmanyan said that 85%-90% of sites have now mobilised and if there are no major incidents that affect physical progress the company will be able to catch up on what has been lost in terms of sales during the year. He added that government has announced a demand programme for projects and if that matures the company hopes for the tenders to come in, which can be secured by the company and push for more sales.