L&T has been facing challenges with customers deferring orders and falling oil prices contributing to a sharp slowdown in the Middle-east, one of its biggest bets. Competition has increased in domestic market as companies fight for a shrinking order book pie.
It also incurred losses due to inability to pass on cost escalation and other issues. In the first half of FY17, its revenue increased 8.6% to Rs 46,885 crore. Profits rose to Rs 2,044 crore from Rs 1,197 crore a year ago.
In April the non banking finance company of the engineering major Larsen & Toubro, had asked over 550 employees to quit due to high costs and a muted business environment. L&T Infotech has a high attrition rate of 18%.
L&T launched a five-year strategic plan this year aiming to scale up revenue to Rs 2 lakh crore. The plan identifies some non-performing businesses that have been put under scanner and call on them will be taken in 18-24 months.”