&w=3840&q=100)
Seeing strong growth amid global uncertainties: L&T's S N Subrahmanyan
Despite global uncertainty due to ongoing wars and supply chain disruptions, consistent order inflows from West Asia and rapid infrastructure investments in India are driving L&T's growth, its Chairman and Managing Director (CMD) S N Subrahmanyan said at the company's 80th Annual General Meeting (AGM) conducted online here on Tuesday.
'In India, strong government spending on infrastructure, and rising private investment in sectors like energy transition, data centres, semiconductors, and healthcare signal positive momentum,' the CMD said.
'Despite global uncertainty, your company delivered strong growth across key performance metrics. Group order inflows for the year (2024-25, or FY25) reached ₹3.57 trillion, up 18 per cent year-on-year (Y-o-Y), driven by order wins in infrastructure and energy sectors. Like the previous year, continued capex in the Gulf countries drove international order wins, which exceeded domestic order wins for the second year in a row,' Subrahmanyan said, adding that the company was keeping a close watch on the emerging Israel-Iran war situation.
The CMD described FY25 as a transformational year shaped by geopolitical shifts, emerging technologies, climate challenges, and supply chain disruptions. 'Amid these complexities, L&T demonstrated resilience by embracing digital tools, enhancing execution capabilities, and offering sustainable solutions,' he said.
The company ended the year with a record-high order book of ₹5.79 trillion, up 22 per cent Y-o-Y, with international orders accounting for 46 per cent of the total. Group revenues rose 16 per cent to ₹2.56 trillion, and net profit climbed 15 per cent to ₹15,037 crore during the year. Improved margins and reduced capital intensity lifted return ratios while continued deleveraging brought down the net debt-to-equity ratio to 0.6x from 0.64x a year earlier.
Subrahmanyan said much of the group's debt was now concentrated in L&T Finance, the group's non-banking financial arm. He reaffirmed L&T's focus on shareholder value creation through prudent capital allocation, strategic divestment of non-core assets, and investment in high-growth areas, such as energy transition and digital platforms.
The company's infrastructure business continued to anchor its growth, with the successful completion of multiple complex EPC (engineering, procurement, and construction) projects in India and abroad. In the energy segment, L&T has restructured its operations into four verticals — Hydrocarbon Onshore, Hydrocarbon Offshore, CarbonLite Solutions, and Green & Clean Energy — to align better with execution environments and strategic priorities.
The offshore unit secured the company's largest-ever order in West Asia while the rebranded CarbonLite Solutions focused on carbon capture technologies, nuclear turbine island systems, and pumped hydro storage. The Green & Clean Energy business was building a scalable ecosystem around renewables, reflecting the company's commitment to global decarbonisation efforts, he said.
On the services side, Subrahmanyan said LTIMindtree has emerged as India's sixth-largest information technology (IT) firm, enabling digital transformation for global clients, while L&T Technology Services has expanded its global presence with acquisitions in platform engineering, artificial intelligence (AI), and software product development.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Activist Investors Flood Japanese Firms With Record Proposals
Activist investors are inundating Japanese companies with an unprecedented number of proposals that will keep executives on their toes at annual general meetings. Firms have received a record 137 requests from activists, according to data compiled by Mitsubishi UFJ Trust & Banking Corp. The shareholders are delving deeper into management decisions and demanding changes to board structures and privatizations. The country's jammed AGM season matters more than ever this year as investors seek signs that Japanese stocks - which have underperformed most major markets this year - can get out of a rut. The proposals are putting added pressure on management to deliver tangible growth strategies, rather than simply turning to the quick fix of more buybacks or dividends. 'With new activist holdings being revealed each day, companies are paying extra attention to governance and capital efficiency,' said Rieko Otsuka, a strategist at MCP Asset Management Japan Inc. 'There's a sense of impending crisis among management about when they might be targeted,' she said. The season peaks next week with more than 40% of listed companies - that's over 1,700 firms - set to hold AGMs. They will be at venues including the luxury Palace Hotel near the Emperor's residence, and the Ariake Arena which was built as a venue for the Tokyo 2020 Olympics. Some executives are readying for drawn-out meetings as overall proposals from activists and other shareholders have increased to almost 400, according to Mitsubishi UFJ Trust. That's well over double the number a decade ago. In contrast in the US, total proposals this year fell 14% through May 13 compared with the January-June period last year, as investor demand declined for environmental and social issue-related changes, according to a report from ISS-Corporate based on Russell 3000 index companies. Read: Activist Investors Set Record With $6.6 Billion Spree in Japan Activist investors typically acquire a significant stake and then exert pressure on a firm to influence how it's run, suggesting the increasing presence of these shareholders in Japan may be key to driving pro-growth strategies. Here's a look at some AGM proposals: The scrutiny in Japan is important right now because it may help carve out a path for corporate growth amid a worsening business climate as tariffs upended key sectors of the economy. Gains in Japanese stocks have been limited this year, raising the risk that the Topix Index's two-year rally is over. Read: Dalton Allies With Murakami-Linked Fund to Shake Up Fuji Media 'We get to vote once a year, so it's important and I think probably more than other cultures, voting against the president or the chairman sends a pretty clear message,' said Carl Vine, co-head of Asia-Pacific equities at M&G Investments, whose holdings include Toyota Motor Co. and Seven & i Holdings Co. Even so, proposals aimed to improving shareholder returns still make up a large chunk of activists' requests, and that may provide a short-term boost to the market as deep-pocketed companies pour more cash into buybacks. Read: Japan Calls On Companies to Find Value Beyond Share Buybacks In addition, activist proposals rarely get passed because of opposition from domestic investors, who tend to be quite conservative. Still, the increase in proposals comes at an unfortunate time for executives who can no longer rely as much as on cross-shareholders. The waning influence of this cohort, also known as stable or policy shareholders, may increase the clout of institutional investors at proxy fights. This puts the focus more on companies with low approval ratings and 'opens up the possibility that maybe a new shareholder would come in and try and put additional pressure on management,' said Bruce Kirk, chief Japan equity strategist at Goldman Sachs Japan Co. All this means that AGMs are now a far cry from how they were conducted before Japan's corporate reforms kicked in and the market caught the attention of overseas investors. 'There was a time when decisions were made at AGMs in a planned, harmonious, and ritualistic manner, just for the sake of it,' said Hidenori Yoshikawa, chief consultant at Daiwa Institute of Research, a Tokyo-based think tank. 'Now, until the meeting ends, we don't know how it will turn out.' This article was generated from an automated news agency feed without modifications to text.
India Gazette
an hour ago
- India Gazette
G7 summit continues in Canadian Rockies amid Israel-Iran tensions
BANFF, Alberta: The recent G7 summit has convened for the second and final day in the picturesque Canadian Rockies amidst escalating tensions stemming from the ongoing Israel-Iran conflict. As the world leaders gathered, Canada made significant efforts to steer clear of any potential confrontations, particularly with President Donald Trump, who abruptly left the summit on Monday night. Prime Minister Mark Carney says his summit priorities are enhancing peace and security, building critical mineral supply chains, and creating jobs. However, pressing issues such as U.S. tariffs along with conflicts in the Middle East and Ukraine are dominating discussions. In a striking turn of events, just hours before the leaders' meeting, Israel and Iran exchanged fresh hostilities that inflicted heavy casualties. This alarming backdrop heightened the urgency for a unified response, which resulted in the issuing of a joint statement advocating for de-escalation in Iran. A statement President Trump agreed to sign on to prior to his departure. "We, the leaders of the G7, reiterate our commitment to peace and stability in the Middle East," the statement issued Monday night said. "In this context, we affirm that Israel has a right to defend itself. We reiterate our support for the security of Israel." "We also affirm the importance of the protection of civilians," the G7 leaders said. "Iran is the principal source of regional instability and terror. We have been consistently clear that Iran can never have a nuclear weapon." "We urge that the resolution of the Iranian crisis leads to a broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza," the G7 statement said. "We will remain vigilant to the implications for international energy markets and stand ready to coordinate, including with like-minded partners, to safeguard market stability." German Chancellor Friedrich Merz articulated that his key objectives include preventing Iran from acquiring nuclear weapons, supporting Israel's right to self-defense, and fostering an environment conducive to diplomatic solutions. He stated at the start of the summkit, "This issue will be very high on the agenda of the G7 summit." The summit is taking place in Kananaskis, a stunning resort located approximately 90 kilometers west of Calgary. During Canada's last summit in 2018, tensions with Trump led to his abrupt departure on that occasion too, and subsequent public disparagement of then-Prime Minister Justin Trudeau. This history adds pressure on the current summit to proceed without further significant interruptions. International affairs scholar Roland Paris speculated, before the start of the conference "This will be a successful meeting if Donald Trump doesn't have an eruption that disrupts the entire gathering. Anything above and beyond that is gravy." As Trump arrived in Canada, Prime Minister Carney faced the challenge of negotiating sensitive topics, including U.S. import tariffs on steel and aluminum. Carney has warned of potential retaliatory actions if these tariffs are not lifted. Josh Lipsky from the Atlantic Council highlighted the best possible outcome as avoiding significant conflicts as the leaders engaged in dialogue. Amidst these discussions, Canada opted for a more streamlined communication strategy, opting out of a traditional comprehensive joint communique. Instead, chair summaries will be used to prevent diplomatic mishaps and maintain engagement with the U.S. Ottawa's focus will be on collective actions among the G7 nations—Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. Veteran diplomat and Senator Peter Boehm indicated that this summit might extend longer than usual to facilitate more extensive bilateral talks, particularly with President Trump. Various leaders from nations such as Ukraine, Mexico, India, Australia, South Africa, South Korea, and Brazil are participateing each eager to discuss their unique concerns directly with Trump. Japanese Prime Minister Shigeru Ishiba was particularly keen on persuading Trump to reconsider the trade tariffs that threaten Japan's automotive industry following recent high-level trade discussions in Washington. A senior U.S. official expressed that topics including international security, energy security, and issues surrounding critical minerals would be key elements of the discussions. Given the challenges faced by other world leaders in their interactions with the Trump administration, the G7 summit represented a significant opportunity for coalition-building, particularly regarding Ukraine. Canada has consistently been a strong ally of Ukraine. This pivotal gathering comes at a time when the necessity for cohesive strategies among global allies is more crucial than ever, with the G7 summit serving as a litmus test for the continuity of U.S. engagement in multilateral settings.
NDTV
2 hours ago
- NDTV
PM Modi Meets With World Leaders On Sidelines Of G7 Summit In Canada
Kananaskis, Canada: Prime Minister Narendra Modi on Tuesday met with the leaders of South Korea, Mexico, South Africa and Australia on the sidelines of the G7 Summit here. Prime Minister Modi held a pull-aside with South Korean President Lee Jae-myung, officials said. "The two leaders reaffirmed their commitment to deepening India-South Korea Special Strategic Partnership by exploring new avenues for cooperation through partnerships in areas of trade & economy, critical & emerging technologies, green hydrogen, shipbuilding, culture & P2P among others," Ministry of External Affairs spokesperson Randhir Jaiswal said on X. PM @narendramodi met President Mr. Lee Jae-Myung @Jaemyung_Lee of Republic of Korea on the sidelines of the 51st #G7Summit in Kananaskis, Canada. The two leaders reaffirmed their commitment to deepening 🇮🇳-🇰🇷 Special Strategic Partnership by exploring new avenues for cooperation… — Randhir Jaiswal (@MEAIndia) June 17, 2025 They also discussed regional & global issues, he said. PM Modi also met with Mexico President Claudia Sheinbaum Pardo and shared perspectives on key global and regional issues, including priorities of the Global South. It was the first meeting between the two leaders. "Boosting India-Mexico warm & historical ties. PM @narendramodi met President Dr @Claudiashein of Mexico, on the sidelines of 51st G7 Summit in Kananaskis, Canada," Mr Jaiswal said in another post on X. "Both sides discussed avenues to further deepen India-Mexico cooperation in trade, pharmaceuticals, S&T, digital innovation and shared perspectives on key global & regional issues, including priorities of the Global South," he added. The prime minister also met with his Australian counterpart Anthony Albanese. "Good to meet my friend, PM Albanese of Australia during the G7 Summit in Canada!" PM Modi said on X. Good to meet my friend, PM Albanese of Australia during the G7 Summit in Canada! @AlboMP — Narendra Modi (@narendramodi) June 17, 2025 Sharing a photo of his interaction with South African President Cyril Ramaphosa on X, Modi said he was happy to interact with him. PM Modi was earlier welcomed by his Canadian counterpart Mark Carney as he arrived here for the G7 Outreach Session. Earlier, Modi had said he would be discussing important global issues and emphasise the priorities of the Global South as he meets world leaders at the G7 Summit. This is PM Modi's first visit to Canada in a decade.
