Posted 9/7/2023, 7:34:00 AM
India's L&T sees share of private orders settle at a third but remain below peak
- L&T sees private sector orders settling around a third of total orderbook as investment picks up, but below historical peak of 40%
- Share of private orders has risen to 31-32% from 22-23% a year and a half ago on higher capacity utilization
- Constrained investment appetite of large family businesses and reluctance towards public-private partnerships to keep private share below peak
- Pace of government project implementation has improved but shortage of skilled labour a key risk
- Investments related to energy transition in markets like Middle East helping increase private orders share
- L&T will not commit capital to projects with returns longer than 5 years, will prefer to build infrastructure for others instead