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L&T's SN Subrahmanyan: Expect momentum to pick-up in Q4

SN Subrahmanyan, MD & CEO, L&T speaks with CNBC-TV18 on its deal with Schneider Electric, demand outlook and interests in the defence sector and more

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By Sonia Shenoy   | Latha Venkatesh  September 1, 2020, 2:22:53 PM IST (Published)

L&T's SN Subrahmanyan: Expect momentum to pick-up in Q4
L&T has completed the divestment of electrical & automation business. They have sold the business to Schneider Electric for Rs 14000 crores in an all-cash deal. SN Subrahmanyan, MD & CEO, L&T said, “This money that comes in will definitely improve the balance sheet and the profit and loss thereon and we will use it to further strengthen the balance sheet. Some proceeds will go towards debt repayments.”


While talking about the ground situation he said, “Pre pandemic we had about 2,70,000 labourers, during pandemic about 1,00,060 labourers were there in the labour colonies we took care of them. Now about 2,20,000 labourers are back on the roles, 90 percent of the projects have started. The amount of cement and steel that we purchase is an indication of project movement so it is on an upward trend. We feel reasonably positive that as he quarter goes forward we will regain back the momentum.”

Speaking about normalcy, he said, “Normally this Q2 is a very difficult for us because of the monsoon across the country. Many of the sites were unable to work due to monsoon activity. Nevertheless, I think we are more or less at about 75-80 percent of last August. The way we look at it by Q3 we should be more or less the same and Q4 it should be a faster momentum.”

On defence, he said, “Defence can contribute, we need some luck because at the end of the day anything that is settled with the government is on a competitive basis. From the L&T’s point of view, we are at the strategic forces areas, we are at the land defence system, we have a certain amount in electronics, submarines and shop building. In all these four areas we have sufficient bids.”

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