L&T Infrastructure Development Projects Ltd has 15 operational road projects and two are under implementation
Larsen & Toubro (L&T) is looking to come up with its own Infrastructure Investment Fund (InvIT) following a good response to the recent offerings by other firms.
"As per the initial response, InvITs are attractive. We are examining the issue," R Shankar Raman, director & chief financial officer of Larsen & Toubro, said at a press conference to announce Q4 results.
L&T Infrastructure Development Projects Limited has 15 operational road projects and two are under implementation. At the moment, L&T officials did not share which projects will be brought under the InvIT and what would be the IPO size.
The company reported a 29.5% year-on-year increase in net profit for the quarter ended March 31 at Rs 3,025 crore is eyeing a revenue growth of around 12% this fiscal.
The company had reported a net profit of Rs 2,335 crore in the corresponding quarter of the previous year.
Total income from operations rose 12.02% for the January-March to Rs 36,827.99 crore.
The company has also removed Rs 18,000 crore worth of orders during the last fiscal due to orders that weren't doing good.
"Every quarter, we do some sifting, what are the moving orders, what are the chances of non-moving orders and twice a year we take stock – once in September and once in March, which we have done. For a year as a whole, Rs 18,000 crore is what we have eliminated from the Rs 261,000 crore," said Shankar Raman said.
The areas from where it discontinued such orders were from buildings, factories, transportation, etc, or from the real estate and infrastructure sectors.
Around three years ago, the company had a timely delivery index of 23%, which has now moved to 87%. "We are working towards better numbers from 87% to 90% and above. But not all the deadline index delays are due to us, some are also due to delay in getting right of way and other factors," said A M Naik, group executive chairman, L&T.
When asked about recovery post-demonetization, Naik said, "Recovery after demonetization has been very very slow. I do hope that over the next six months it might start moving when things settle down or completely settle."
At least this fiscal, the company does not have any plans to go for public-private partnership road projects. It will continue to focus on engineering, procurement and construction model to expand the company's business.
"We don't want to participate into PPP, we have done enough and lost a lot of money, now we are not going for it. Next fiscal we are not going for PPP, following fiscal we will think depending on experience. Not even Hybrid Annuity Model projects this year, but we could look at it during this or the following year," Naik said.
On PPP business, he said the PPP policy is unsound. A decade ago, when PPP projects came up, everyone ran towards it. Similar was the scenario for power sector too. However, now, several power plants with 17,000 megawatt capacity are lying half done, he said.
With the latest debt recovery processes initiated by the banks, "About 90% of the private sector is worrying" about returning the money, Naik said, adding, therefore no one is willing to borrow and promote new projects. "Today we are dependent on only government which can fund and promote infrastructure and also promote affordable housing," Naik said.
TOWARDS BOURSES
- L&T Infrastructure Development Projects Ltd has 15 operational road projects and two are under implementation
- The company has removed Rs 18,000 crore worth of orders during the last fiscal
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The company had reported a net profit of Rs 2,335 crore in the corresponding quarter of the previous year.
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