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L&T targets Rs 2.7-trillion group revenue by FY26, says chairman Anil Naik

“Our strategic five-year plan — Lakshya — continues to steer the company’s growth,” L&T chairman AM Naik said in his address at the annual general meeting (AGM).

“Your company continues to focus on shareholder value creation by divesting non-core assets, capturing cost efficiencies and leveraging technology for productivity gains. Our strategically diversified business portfolio, geographical dispersion, robust balance sheet and strong order book are signposts pointing to a brighter future,” Naik said.
“Your company continues to focus on shareholder value creation by divesting non-core assets, capturing cost efficiencies and leveraging technology for productivity gains. Our strategically diversified business portfolio, geographical dispersion, robust balance sheet and strong order book are signposts pointing to a brighter future,” Naik said.

Engineering and construction major Larsen & Toubro (L&T) is targeting group revenues of Rs 2.7 trillion and a Return on Equity (RoE) of over 18% by FY26 under its strategic five-year plan. The company will also continue to divest non-core assets to create shareholder value.

“Our strategic five-year plan — Lakshya — continues to steer the company’s growth,” L&T chairman AM Naik said in his address at the annual general meeting (AGM).

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The plan was launched this year with the themes of value accretive growth in current business portfolio, exit from non-core businesses, developing business offerings to ride the energy transition wave and scaling up digital and e-commerce businesses. Business sustainability through sharper focus on environmental, social and governance (ESG) and shareholder value creation also falls under the plan, he said.

The L&T Group recorded revenues of Rs 1.56 trillion in FY22, registering 15% year-on-year growth. It posted an operational net profit of Rs 8,572 crore, a 23% growth over the previous year. Its RoE stood at 12.2%.

“Your company continues to focus on shareholder value creation by divesting non-core assets, capturing cost efficiencies and leveraging technology for productivity gains. Our strategically diversified business portfolio, geographical dispersion, robust balance sheet and strong order book are signposts pointing to a brighter future,” Naik said.

L&T, which has set a target to become water neutral by 2035 and carbon net zero by 2040, has a presence in engineering, procurement and construction solar and water space. The firm is looking to expand its footprint in green hydrogen and energy storage. Talking about the benefits of digital technologies, he said IT spends are “possibly the only deflationary force in today’s inflationary world”.

Naik was of opinion that India is expected to post top quartile growth among emerging markets in the medium term.

“The challenges on the horizon include high oil and commodity prices, supply chain disruptions and the US rate hikes affecting capital flows into India. Despite these roadblocks, however, our view is that the bold structural reforms carried out by the Government in the last couple of years will pave the way for a higher trajectory of growth,” Naik said.

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