L&T orders hint at pvt capex revival

Domestic orders jump 50%, cross ₹20,000 cr after 5 quarters

- Nehal Chaliawala

Engineering giant Larsen & Toubro Ltd flashed the first signs of a much-awaited recovery in India’s private capital expenditure, reporting a sharp recovery in domestic infrastructure orders in the September quarter.

The company’s infrastructure projects segment won domestic orders worth nearly ₹27,400 crore during the quarter, almost 50% more than a year earlier. Domestic order receipts for this business segment crossed the ₹20,000 crore mark after five fiscal quarters. L&T is India’s largest infrastructure developer by a wide margin.

“We find that both private sector capital as well as infrastructure investments have shown an uptick. We do believe that the trend would continue going forward,” said R. Shankar Raman, whole-time director and chief financial officer of L&T. On private sector expenditure, he said that while there was an uptick in order receipts during the second quarter, it remains to be seen whether it turns into a trend.