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L&T to make IT acquisitions in the next 2-3 months

Updated : January 29, 2019 06:38 AM IST

Engineering and construction major, Larsen & Toubro (L&T), on Monday said the company is scouting for acquisition opportunities in information technology (IT) space over the next 2-3 months.

In an exclusive interview to CNBC-TV18, AM Naik, group chairman, said L&T has not made up its mind on acquiring stake in mid-tier IT services company Mindtree.

"Any good proposition in the market, the company would be interested in, but Mindtree is not the only one, there are number of other companies available," Naik said.

"FY19 was a good year for the infrastructure sector, but the next year the growth momentum may moderate as funds may be diverted towards other channels than infrastructure development because of elections," he said, "So, expect moderation in infrastructure growth post-election for 1-1.5 years and if it's a coalition government, growth period will be longer."

"However, in terms of revenues, L&T may not be impacted as the order book is good for next one-year, but order intake will impact the following year," Naik said.

With regards to defence segment, he said, "The growth will be slow and steady. Currently, defence contributes about three percent to L&T revenues and hope to it would be 10 percent over the next 5-7 years."

Last week, Naik was chosen for the country's second- highest civilian award Padma Vibhushan.
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