larsen & toubro ltd share price Management discussions


Indian Economy

The FY 2022-23 commenced with the Indian economy facing headwinds in the form of inflationary pressures due to rising energy and food prices. Supply chain bottlenecks also remained a major constraint due to the protracted war in Europe and the accompanying global sanctions.

Despite a challenging start, the Indian economy has displayed resilience and grew 7.2% in FY 2022-23, aided by sound macroeconomic fundamentals and improved high-frequency indicators. Sustained efforts taken by the Reserve Bank of India (RBI) to rein in inflation by increasing the repo rate by 250 basis points (bps) over the past year have been reasonably successful. The Governments continued thrust on infrastructure-driven, capex-led economic growth, together with signs of a revival of private sector investment in manufacturing and an improvement in capacity utilisation, has maintained the growth momentum.

The Governments push for growth through larger infrastructure spends continues in FY 2023-24. The private capex continues to provide tailwinds to the growth momentum. Buoyancy in tax collections during the current fiscal year supports the capex-led growth aspirations. A healthy balance sheet of private players, improving consumer confidence and investment activity, as well as growing demand conditions, will provide support to economic growth in the near term.

It is expected that the prolonged geopolitical conflict in Europe could continue to impact supply chain dynamics and keep commodity prices volatile for a longer period. Rising interest rates across the world could also influence capital flows into the country. Finally, India, due to the structural reforms and the infrastructure-strengthening efforts of the Government and the monetary support from the RBI, is in a better position to counter the challenges and sustain its growth agenda.

Global Economy

The global economy continues to remain in a volatile state. Global growth is slowing sharply in the face of reduced investments, elevated inflation and interest rates, along with the consequent supply chain disruptions caused by Russia-Ukraine crisis.

The current geopolitical developments are leading to heightened uncertainty and most countries are experiencing a scenario of multi-decadal high inflation. Consequently, central banks across the world have resorted to synchronised monetary policy tightening. The growing polarisation amongst countries, along with fiscal / monetary imbalances, sticky inflation and a rising interest rate regime, only add to the uncertainty overhang.

Additionally, there are fresh headwinds from the banking sector in some advanced economies. OPEC+ is expected to manage the oil supplies in a manner which keeps the oil prices elevated. Uncertainty about the course of the war in Ukraine and its consequences will continue to persist in the near future.

The Middle East region is expected to maintain higher investment outlays, and besides oil, the region is also diversifying into clean energy and other industrial sectors.

In this scenario, localisation trends, possible rearrangement of the global supply chain and the consequent shift in export hubs and de-carbonisation objectives are all factors which are working in favour of India to become the worlds third-largest economy by 2030.

Business Model and Strategy

Strategy Formulation

Business strategy formulation aims to set long-term goals for the Group and identify areas to leverage its strengths, explore new business opportunities and enhance its existing capabilities and offerings. This is enabled through plans with three different time horizons – long-term perspective (7-10 years), medium-term strategy (5 years) and short-term (annual) budget targets. Directions and Objectives determined in the Perspective Plan become the guideposts for medium-term and short-term plans.

‘Lakshya, the Groups 5-year strategic plan, is developed through a collaborative and consultative process across the organisation. The current Lakshya plan, viz., ‘Lakshya 2026 covering FY 2022-26, was formulated and approved by the Board in FY 2021-22. Lakshya 2026 plans to achieve value-accretive growth in the existing businesses through a multi-pronged approach of targeting opportunities arising out of global trends, with a focus on ESG and Sustainability. The underlying emphasis of Lakshya 2026 is to ride the momentum in existing and emerging technology trends for IT services, reorganise the business offerings to serve the customers better and drive profitability through operational excellence, value engineering and digitalisation initiatives.

Lakshya 2026 has completed its second year in FY 2022-23 and is progressing towards achieving the targets set in the plan. One core focus area of the Lakshya 2026 plan was the development of new businesses, and the Group has made progress towards setting up two new businesses, i.e., Green Hydrogen and Data Centers. This is in addition to scaling up the two new-age digital businesses – L&T EduTech and L&T-SuFin. The Group also continues to pursue its goal of unlocking value by exiting non-core businesses and staying asset-light.

Business Model

Value creation is enabled through a portfolio comprising:

EPC Projects

EPC Projects focus on the proven core competencies of conceptualising, designing, executing and commissioning large, complex projects in the areas of mobility infrastructure, power transmission and distribution, power generation plants, Green Hydrogen and its derivatives, water and irrigation infrastructure, buildings and factories, oil and gas facilities, metals and mining, etc.

Hi-Tech Manufacturing

Hi-Tech Manufacturing focuses on custom-designed and built equipment catering to process plants, industrial and bulk material handling, electrolysers, advanced chemistry cell batteries, construction machinery and mining equipment, industrial valves and defence engineering, including shipbuilding.


The Services businesses cater to sectors of IT (through LTIMindtree), Engineering R&D (through LTTS), Financial Services (through L&T Finance), Real Estate Development (through L&T Realty), B2B E-commerce (through L&T-SuFin), Skilling and Assessment (through L&T EduTech) and Data Centre and Cloud Services (through L&T-Cloudfiniti).

In the past, the Group had made significant investments in concession projects such as metro rail (Hyderabad Metro), road operations and tolling (through L&T Infrastructure Development Projects Limited) and power (Nabha Power). However, the focus in recent years has been on reducing its exposure to such public-private partnerships (PPPs) through divestment.

Portfolio Strategy

The portfolio comprises of a selected mix of businesses that have differing risk profiles. This enables a balanced and manageable level of aggregated risks leading to overall growth of the Company year on year.

Complementing mature businesses with growth-stage businesses

While the Group relies on mature businesses for cash generation and steady growth, the focus is also on seeding and scaling up new businesses which have high growth potential, are tech-oriented, asset-light, and deliver high financial returns.

Geographically diversified businesses

India continues to remain the primary market for EPC Projects, Hi-Tech Manufacturing and Financial Services businesses. This is complemented by a focus on select international geographies, i.e., Middle East, Africa and ASEAN. The Americas and Europe would continue to be the primary geographies for the IT services businesses.

Balancing the cyclical nature of the EPC business through a portfolio of Services businesses

To have a better revenue profile and improved profitability, the Group intends to increase the share of the IT&TS services businesses, while pursuing growth in the traditional EPC Contracts and Hi-Tech Manufacturing businesses.

Supplementing the standalone offerings with partnerships

For Hi-Tech Manufacturing and EPC Projects businesses, the Group has partnered with several large global process licensors and technology licensors to improve the scope of business offerings. For the IT and Technology Services businesses, the Group has strategic partnerships with established global software product and technology companies.

Strategic Thrust and Direction

The Group re-evaluated its Strategic Objectives in FY 2021-22, as part of the assessment done in the Lakshya 2026 exercise. These objectives illustrate how the Group creates value for its stakeholders, fulfills social obligations and meets sustainability goals. These are:

Strategic Objectives

SO-I Value-accretive growth of current businesses
SO-II Scaling-up digital and e-commerce businesses
SO-III Developing business offerings to ride the Energy Transition wave
SO-IV Divestment of non-core businesses
SO-Rs. Enabling business sustainability through a high focus on
ESG and shareholder value creation

Strategic Objectives are supported through:

Strategic Enablers

SE-1 Operational Excellence for leadership in cost-competitiveness
and world-class execution
SE-2 Industry-leading capabilities in digital technologies and analytics for
productivity, ESG effectiveness and strengthening revenue streams
SE-3 Financial resources to enable growth of the businesses and strong financial
health to facilitate access to capital markets, as and when required
SE-4 Talent and leadership pipeline to drive growth and ensure
business continuity
SE-5 Capability development through R&D, absorption of
new technologies and partnerships

Performance in FY 2022-23 against Strategic Objectives

Objectives Performance Measures Performance


• Revenue growth

In FY 2022-23, with a return to normalcy of business activities, the Group achieved revenues of ? 183,341 crore(17% y-o-y).

Value-accretive growth of current businesses

• Composition of Services in total revenues

The Services businesses continued to show strong growth (20% y-o-y) with a stable percentage share in revenues at 30% in FY 2022-23.

SO-II Scaling-up

• Growth of digital and e-commerce businesses

L&T Data Center and Cloud Services business has been launched in FY 2022-23 with the commencement of construction of Data Centers in Panvel and Kancheepuram.

digital and e-commerce businesses

L&T-SuFin and L&T EduTech have been scaled-up further, post their formal launch in FY 2021-22.


• Size of Green Business

The Green Business of L&T grew to ? 413 billion which is 37% of standalone revenues in FY 2022-23 (as compared to34.7% in FY 2021-22).

Developing business offerings to ride the Energy Transition wave

• New business or business offering developed

The Group also made significant progress in the Green Energy business with the signing of MoUs / agreements (with partners, for the development of Green Hydrogen projects) and setting up a pilot plant for Green Hydrogen production at its Hazira facility.

SO-IV Divestment of non-core businesses

• Divestment of businesses

In FY 2022-23, the Group entered into a Share Purchase Agreement to divest its entire stake in L&T IDPL (a joint venture having investments in road projects and power transmission assets).

The Group continues to actively pursue divestments from other non-core assets and is also exploring various alternatives to derisk the current exposure in Hyderabad Metro.


• Metrics linked to ESG performance based on materiality e.g.

For details refer to the following in the Integrated Report section:

Enabling business sustainability through

Natural Capital

- Carbon footprint

a high focus on ESG and Shareholder Value Creation

- Resource consumption

Social and Relationship Capital


Human Capital

- Training hours

Risk Management Framework

The Company has a robust risk management framework, including processes at individual businesses having dedicated risk management teams, in addition to statutorily mandated risk management committees. The Companys risk management framework, with several levels of risk ownership, involves the identification, evaluation and management of risks. The framework appropriately manages risks at individual projects as well as at the level of the overall portfolio. Portfolio-level monitoring primarily covers aspects such as concentration risk, etc.

In addition to project-related risks, the Risk Management Framework also addresses risk mitigation procedures for functions such as Treasury, Accounts, Technology, M&A, HR, etc. Overall, risk management is integrated with business processes to ensure that risks are adequately managed, while ensuring that the regulatory and other compliance requirements are met.

1. Tactical and Strategic Risks

Several emerging market economies have faced headwinds due to the US Federal Reserves interest rate tightening actions as well as the continuing Russia-Ukraine war. The economic environment included currency volatility, inflation, supply chain issues and commodity price increases. Geopolitical risks remain high. While commodity prices have corrected to some extent, they still remain elevated. In developed markets, fiscal deficits continue to remain high.

Country risks are actively monitored and managed using a country-clearance framework. Counterparty risks and Sanctions risks are also monitored and managed. Business contingency plans are put in place and tested to tackle potentially adverse scenarios. Currency risks are managed actively using appropriate hedging strategies. Pegged currency exposures are also monitored proactively.

? Portfolio changes

Climate change has resulted in the emergence of new business opportunities in the form of Energy Transition projects, which in turn has also led to a portfolio shift in terms of the type of projects undertaken, as well as the choice of geographies. An increase in the international Order Book has been witnessed. Other changes at the portfolio level have also occurred due to the size of projects, type of client, etc. At the Group level, the increase in the size of the IT&TS businesses implies that the Group will be more exposed to the economic conditions in developed markets.

? Talent risks

The increased focus on infrastructure spending by Central and State Governments has led to higher competition for talent. The Company has processes in place to monitor and manage its talent pool. Talent management is expected to remain a high priority for the Company to counter the risk of attrition.

? Energy Transition

The threat of climate change has pushed countries across the globe to adopt a Net Zero Path, and Energy Transition is a key element in that. In addition to this, geopolitical tensions arising out of the Russia-Ukraine crisis have brought to the fore energy security concerns and propelled the Energy Transition movement further. Stakeholder activism on ESG is also pushing corporates to pursue sustainable business operations and reduce the impact of the firms energy consumption.

The Company has committed to Energy Transition and Sustainability goals by setting targets to become Carbon Neutral by 2040 and Water Neutral by 2035. For reducing the impact of energy use, the Company is taking initiatives to reduce the consumption of fossil fuels by reducing the energy intensity of the businesses, switching to cleaner fuels and increasing the use of renewable energy as part of electricity consumption. The Company also views the energy transition as an opportunity for business growth. Areas like renewable energy (solar, hydel), clean energy (nuclear, natural gas), renewable fuels (green diesel), green hydrogen, battery energy storage and offshore wind present good opportunities for growth.

2. Operational Risks

The Company faces various operational risks like geological risks, climatic conditions, labour and resource availability, procurement risks, client payment terms, right-of-way, utilities shifting, clearances from various Government bodies, etc.

A risk review mechanism improves the ability to identify and manage operational risks. Risk registers are maintained and movements of risk across the life cycle of projects are tracked and managed. Various factors including resource availability, legal and taxation issues as well as financial / commercial risks are identified and mitigated at the bidding stage. In addition, the regular monitoring of projects under execution is also carried out. Guardrails and policies are laid down for aspects such as working capital management, vendor and sub-contractor engagement, etc., and project compliances. The Companys robust ERM system also helps in risk management. After projects are completed, close-out risk reviews are conducted.

? Natural Disasters

Historical precipitation data is analysed and factored into execution timelines at the stage of bid submission. Suitable studies of the terrain are carried out before the commencement of project execution, including soil testing, geological aspects, etc. During adverse weather conditions, equipment is protected by tying down or anchoring down (in case of barges).

Seismic impact on the business is evaluated and its mitigation through earthquake-resistant design is adhered to as a part of the risk review. A vigilant project execution culture ensures fast and safe de-mobilisation of manpower and machinery in case of a natural calamity. Insurance is also utilised prudently to manage these risks.

? Climate Risk

The impact of global warming and climate change is being seen in a higher frequency of extreme weather events like heat waves and changes in weather patterns. The Companys primary business activities are related to the construction and manufacturing sectors, which may get negatively influenced by climate change. Some of the major concerns are:

i. Actual weather conditions experienced at project sites / manufacturing facilities may be significantly different from historical or predicted meteorological data and impact the preparedness of the business.

ii. Climate change, being a risk multiplier, has exacerbated the instances of extreme weather events / natural calamities which cause significant difficulties in resource productivity, transportation of equipment and materials, and safe operations.

iii. Extremely high daytime temperatures pose a danger to the health and safety of workmen and employees, and impact their productivity.

iv. Heavy precipitation or flooding poses significant risks to operations and the movement of plants and machinery.

v. In addition to the loss of productivity and threat to safety, climate events pose an additional burden in terms of higher contingencies and insurance costs.

vi. Resource scarcity and the consequent impact on costs, e.g., availability of water for business operations.

vii. Higher costs in the form of carbon taxes and compliance costs, e.g., CBAM, SFDR.

The Company adheres to all environmental and safety compliances including ISO 14001 and ISO 45001. Occupational hazard mitigation measures and adherence to an environmental management plan are carefully monitored at all project sites and manufacturing locations. Assessment of high precipitation / flooding periods is done at the bidding stage for EPC projects and it is factored into the project execution plan to avoid heavy or at-risk work during those periods.

Monsoon preparedness plans are a standard requirement now for all projects and cover plans for the protection of equipment (covering, tying down or other suitable arrangements), back-up for power / fuel, human safety, and plans for restoring normal operations like de-watering arrangements.

For dealing with periods of extremely high temperature, measures are taken to reschedule the work-rest cycle, adopt additional measures for shelters and ensure hydration of the workforce, conduct awareness sessions and issue regular advisories to apprise the workforce of risks, reporting issues and measures to be taken. To de-risk the movement of equipment in difficult environmental conditions, appropriate arrangements (route assessment, ground reinforcement, special support team, etc.) are made in advance.

Initial risk assessment and regular risk reviews aim to anticipate the impact of climate risks and devise solutions to avoid / mitigate the risks.

? Cyber security

There is a Cyber Security Assurance Framework under which cyber preparedness is regularly monitored. The Chief Information Security Officer is responsible for company-wide cyber security related issues. Regular updates are provided to the Risk Management Committee and processes and policies are fine-tuned as required.

? Other risks

Risks to the Companys businesses can arise from changes in technologies, evolution in business models as well as intensified competition. Apart from the above, unforeseen tail risks (e.g., the COVID-19 pandemic) will continue to emerge as additional challenges. While the

Company has processes in place to track and manage these aspects suitably, residual risks will remain to be dealt with on an ongoing basis.

3. Financial Risks

Financial risk management is governed by the Risk Management Framework and Policy approved by the Companys Audit Committee and authorised by the Board. Financial risks in each business portfolio are centrally measured and managed by the Corporate Treasury.

FY 2022-23 was a year of continued recovery from the pandemic aided by concerted vaccination efforts. While the economy did open up, the ongoing Russia-Ukraine conflict impacted commodity prices adversely. Elevated oil prices widened the trade deficit putting pressure on the USD-INR exchange rate. Most of this pressure was absorbed by Indias foreign exchange reserves, which shrunk by about USD 70 billion.

In India, full recovery in urban services, strong urban job growth and steady improvement in real rural wages should see greater participation from lower-income households in FY 2023-24. Well-capitalised Indian banks with lower NPAs should be able to withstand the collateral stress, if any, emanating from the banking sector turmoil in some of the developed economies in the West. Indian banks credit is expected to grow steadily at 12-13% backed by a robust deposit growth of about 10-11%.

Inflation is expected to stabilise at around 5%, assisted by improvement in domestic food supply and a fall in global commodity prices. However, strengthening domestic demand could keep inflation elevated in the services sector. Meanwhile, correction in commodity prices and robust services exports are likely to contain the Current Account Deficit (CAD) in FY 2023-24, allowing the Government to exercise fiscal prudence and at the same time, pursue a capex-driven long-term growth path for India. Some green shoots in private investment are visible. However, developments with respect to the global economy and conditions prevailing in the domestic economy in terms of inflation and liquidity scenario will determine the momentum of private capex.

The slowing trajectory of inflation and improving CAD position would also allow the RBI to take a pause from further rate hikes during FY 2023-24, with a possibility of rate cuts, maybe towards the end of the financial year.

As for the global markets, the years 2020 and 2021 witnessed the central banks providing an economic safety net with ultra-accommodative monetary policies, primarily to negate the aftermath of the COVID-19 pandemic. The year 2022 was all about central banks starting to aggressively pull that safety net away, to combat the rising inflation across all commodity classes, exacerbated by the Russia-Ukraine conflict. The year 2023 will likely see all the major central banks taking a pause on interest rate hikes as the urge to control inflation may lead to recessionary conditions across most developed economies.

Looking ahead, we expect financial market volatility to remain elevated as risks still continue to persist and global financial conditions remain tight. This is likely to create continued headwinds to growth and, by extension, risk assets.

The recent developments in the banking sector in both the US and Europe have raised questions on the resilience of the banking system of the developed world. This has also increased the fear of contagion in other smaller regional banks and less regulated non-banking sectors like Private Equity and Hedge Funds having significant exposure to sectors like commercial real estate.

China could witness decent growth momentum in the first half of the year 2023 due to the pent-up demand emanating from the post-COVID reopening. In the second half of the year, the growth could moderate because of lower investments, sluggish domestic demand and a possible global slowdown.

? Foreign Exchange and Commodity Price Risks

The businesses of the Company are exposed to fluctuations in foreign exchange rates and commodity prices. Additionally, it has exposures to foreign currency-denominated financial assets and liabilities. Foreign exchange risk on revenues, costs, assets and liabilities are managed through forwards and options wherein the counterparties are regulated banking entities. The financial risks involving commodity prices are managed through price variation clauses embedded in customer contracts, hedges in financial markets and pass-through price arrangements. In the case of contracts with price variation clauses, the Company runs a basis risk in terms of revenues tied to various price indices versus actual prices. For FY 2022–23, commodity prices have softened from the peak levels of March 2022. With global growth expected to moderate in the year 2023, the Company expects base metal prices to be range-bound. Supply chain imbalances due to geopolitical issues continue to pose a risk, thereby leading to higher volatility.

The disclosure of commodity exposures as required under clause 9(n) of Part C of Schedule Rs. of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 in the format specified vide SEBI Circular dated November 15, 2018, is given below:

% of such exposure hedged through commodity derivative

Sr No.

Commodity name

Exposure towards the particular commodity (? crore)

Exposure in quantity terms (Tonnes)

Domestic market International market


OTC Exchange OTC Exchange
1 Aluminium - Buy 1,528.84 74,266 - - 45.68 - 45.68
2 Aluminium - Sell 231.88 11,762 - - 30.24 - 30.24
3 Zinc - Buy 24.94 939 - - 100.00 - 100.00
4 Copper - Buy 1,912.51 26,227 - - 50.02 - 50.02
5 Lead - Buy 12.03 694 - - 100.00 - 100.00
6 Coking coal - Buy 130.79 45,476 - - 6.60 - 6.60
7 Iron ore - Buy 91.66 89,277 - - 75.34 - 75.34
8 Steel - Buy 31,478.81 4,453,644 - - - - -
9 Cement - Buy 6,246.96 8,769,169 - - - - -
10 Nickel - Buy 297.95 842 - - 54.02 - 54.02

? Liquidity and Interest Rate Risks

The Company constantly monitors the liquidity levels, economic and capital market conditions and maintains access to the lowest cost sources of liquidity through a combination of approved banking lines, trade finance and capital markets. The Company judiciously deploys its surplus funds in short-term investments, in line with the Board-approved Treasury Policy. During FY 2022-23, the Company managed its higher than usual treasury investments to generate investment returns, to partly neutralise the higher interest cost due to borrowings raised in the previous year 2021-22. The Company dynamically manages interest rate risks through a mix of fund-raising, investment products and derivatives across maturity profiles and currencies within the robust Risk Management Framework.

Financial Resources and Capital Allocation

The capital allocation philosophy of the Company is geared to support business initiatives for the profitable growth of the Company, while retaining enough liquidity to support any sudden short-term requirements of the Group.

After facing uncertainties in FY 2021-22 in terms of liquidity and supply chain disruptions, the Company continued to face an uncertain economic environment at the beginning of FY 2022-23, given the Russia-Ukraine war. The Company raised a significant amount of long-term liquidity in FY 2020-21. The comfortable liquidity reserve on the balance sheet was also carried forward to FY 2022-23, given the lingering uncertainty. The Company provided financial support to Group companies like L&T Metro Rail Hyderabad Ltd., while they were recovering from the impact of the COVID-19 pandemic. The Company also supported the capital expenditure required to execute some of the large projects awarded in the previous years. Going forward, apart from regular capital expenditure, the Company plans to invest in select new businesses of green energy and data centers and continue to focus on growing its services businesses.

As a result of the improved collection efficiency in businesses, the Company ended the FY 2022-23 with a reduction in the debt levels to ? 18,151 crore vis-?-vis

? 20,298 crore in the previous year, at the standalone entity level. The Company proposes to raise long-term debt in FY 2023-24, to refinance almost ? 4,500 crore of maturing debt and to fund its proposed capital expenditure. Low gearing levels (Gross Debt to Equity ratio at 0.25x) and a healthy cash balance at about ? 24,300 crore equip the Company to deal with normal business uncertainties. Given the recovery in financial markets post-COVID, improved collection efficiency in the Companys businesses and the healthy balance sheet position of Indian banks, the Company may decide to lower the cash reserves on the balance sheet from the current levels in FY 2023-24.

With the implementation of the Large Exposure Framework guidelines of RBI from April 1, 2019, the banking limits sanctioned by domestic banks to any of the Group businesses will need to fit within 25% of the Tier 1 capital of banks, versus 40% of Tier 1 and Tier 2 capital prevalent earlier. As of now, the Company has adequate banking facilities to cater to the business requirements.

The Company is seeing a significant volume of large-value contracts in the Middle East, especially from Saudi Arabia, which will require large banking facility tie-ups locally. The Company expects to tie up the required banking facilities during the year to address the upcoming project requirements.

Internal Controls and Safeguards

The Company has adopted the globally accepted framework issued by the Committee of Sponsoring Organisations (COSO) of the Treadway Commission for Internal Controls. This framework provides for Internal Controls to be commensurate with the nature, size and complexity of the business, both at the entity level and process level and assists the Company in achieving predictable and desired outcomes. The internal controls are aligned with the strategy of the Company, dynamics of constant challenges and the resultant evolving business needs. The Companys internal controls framework ensures integrity in conducting its business, safeguarding its assets, timely preparation of reliable financial information, accuracy and completeness in maintaining accounting records and prevention and detection of frauds and errors monitored through a set of detailed policies and procedures.

Employees of the Company are guided by the ‘Code of Conduct that reflects and reinforces the culture and value system. A separate ‘Code of Conduct has to be confirmed by the suppliers at the time of the registration process to ensure that they align with the Companys commitment to pursue sustainable growth by integrating Environment, Social and Governance (ESG) principles with their businesses. The Board of Directors and Management at all levels exhibit the right tone through their actions, behaviour and directives. The ‘Code of Conduct and the ‘Whistle-blower / Vigil Mechanism policies are available to both employees and business partners to empower them to raise genuine concerns about any actual or suspected ethical / legal violations or misconduct or fraud, with adequate safeguards against victimisation, fear of punishment or unfair treatment.

The Internal Financial Controls (IFC) system operates at the entity and process levels and is aligned with the requirements of the Companies Act, 2013 and the globally accepted framework issued by COSO. The primary responsibility for establishing, operating and upgrading the Internal Controls System is on the executive management, who are assisted by Internal Control teams operating at corporate and individual business levels. The teams formulate and upgrade the processes and standard operating procedures on an ongoing basis and share best practices across the organisation.

The Corporate Audit Services Department undertakes the testing of internal controls (design as well as operating effectiveness) and follow-up for remedial actions where controls require strengthening. The Audit Committee guides and evaluates the efficacy of the Corporate Audit function and reviews the major audit observations regularly during the year. The operating effectiveness of IFC is carried out by the Corporate Audit Services team and the Internal Controls over Financial Reporting (ICoFR) by the Statutory Auditor, and no reportable material weaknesses, either in their design or operations, were observed. The evaluation included documentation review, enquiries, testing and other procedures considered to be appropriate in the circumstances.

Overall Financial Review FY 2022-23

I. L&T Consolidated

In backdrop of global volatility and uncertainty, the Group has recorded a good performance across its businesses, spread across diverse sectors and geographies. The Company continued to focus on its goal of maximising shareholder value by divesting assets identified for sale, achieving operational excellence through digital initiatives in furtherance to improved cost competitiveness, containing working capital along with better funds management and effective as well as profitable execution of its large Order Book.

During the year, as part of the strategy to exit non-core businesses, the Company, subject to necessary approvals, has entered into a Share Purchase Agreement with Edelweiss Alternatives to sell its entire shareholding in L&T Infrastructure Development Projects Limited, a joint venture, primarily engaged in the development and operation of the toll road and power transmission assets. Also, the Finance arm of the Group, L&T Finance Holding Limited, has divested its Mutual Fund business to HSBC AMC in pursuit of its strategy to become a leading retail-financing, digitally-enabled FinTech@scale.

Effective April 1, 2022, some of the existing segments of the Company have been realigned to reflect the Groups Lakshya 2026 strategy. The changes are as follows:

? Energy Projects - This is a newly formed segment that constitutes the existing segments of Hydrocarbon and Power, and the newly established Green EPC business to reflect the Groups entry into the Green Energy space and an integrated pursuit of opportunities in a rapidly transforming Energy sector

? Hi-Tech Manufacturing - This is a new segment comprising Heavy Engineering and Defence Engineering businesses – combined to leverage the extensive engineering, manufacturing and fabrication expertise across the various customer segments. In addition, the Groups venture into manufacturing Electrolysers and Batteries will also form part of this segment

? IT & Technology Services - This segment comprises existing listed IT&TS subsidiaries of the Group, viz.,

(a) LTIMindtree Limited, and (b) L&T Technology Services. Further, it will also include the new-age businesses of Data Centers and E-commerce / Digital Platforms (both businesses were reported under the ‘Others segment in the previous year).

During the year, the Company has commissioned a pilot Green Hydrogen plant at the Hazira location, marking its foray into the Green Hydrogen business. The pilot plant produces 45 kg of high-purity Green Hydrogen daily. Additionally, the Company has entered into a technology licence agreement with McPhy Energy (France) for the manufacture of Pressurised Alkaline Electrolysers. The Company has also entered into an MoU to develop floating Green Ammonia projects for industrial-scale applications with Norway-based H2Carrier (H2C).

The Group, during the year, also concluded one of the largest mergers in the Indian information technology (IT) sector, by merging its two listed subsidiaries, viz., Larsen & Toubro Infotech Limited and Mindtree Limited into one listed subsidiary namely LTIMindtree Limited. The merged entity is uniquely positioned to scale up by competing for larger deals and will benefit from cost and revenue synergies on upselling, cross-selling and stitching services together.

Further, the Company also divested a portion of Smart World & Communication (SWC) business to its subsidiary L&T Technology Services (LTTS) effective April 01, 2023. The endeavour of the business transfer is to transform SWC into a global solutions player in the domains of Digital, IoT, 5G, Cyber Security, Data Centers and Cloud, Analytics, etc., by effectively leveraging LTTSs global presence.

As at March 31, 2023, the L&T Group comprised 92 subsidiaries, 5 associate companies, 27 joint ventures and 35 jointly held operations. Out of the total 159 entities, 49 companies belong to the listed subsidiaries and 20 are related to Development Projects. The rest of the entities in the Group are mostly strategic extensions of the traditional businesses, viz., EPC Contracts and Hi-Tech Manufacturing, for enabling access to new geographies, technologies and nuanced business segments.

Order Inflow and Order Book

L&T Group achieved order inflows of ? 230,528 crore during FY 2022-23, registering a growth of 19.4% over the previous year. Growth was largely driven across businesses with strong domestic investment activity momentum assisted by the Government of Indias capex push and buoyant private consumption. This, however, led to a decline in the relative share of international order inflow to 38% from 44% in the previous year.

The year witnessed the booking of some noteworthy orders in domestic irrigation projects and wastewater projects in the Water & Effluent Treatment business, a project in the public space business in the Buildings & Factories vertical, multiple renewable energy projects from the Middle East in Power Transmission & Distribution business, few orders in Hydel & Tunnels business including a lift irrigation project and a strategic order in Heavy Civil business, a couple of orders in the ferrous metal space, few large orders in the Defence business, a large order in the Onshore vertical and multiple orders in the Offshore vertical of the Hydrocarbon business.

With the tepid ordering momentum in the Energy segment primarily due to subdued investment in coal-based power projects, the contribution of the Infrastructure segment in the overall order inflow increased to 51% from 48% in the previous year.

As at March 31, 2023, the Order Book is at a record level of

? 399,526 crore, providing multi-year revenue visibility for the Company. The Infrastructure segment continues to dominate with a share of 71% of the consolidated Order Book.

The Order Book registered a growth of 11.7% on a y-o-y basis, mainly with the receipt of some high-value orders during the year. Around 75% of the total Order Book comprises orders received from Indian Central and State Governments (including local authorities) and State-owned enterprises (both domestic and international). The private sector is gathering momentum with its contribution increasing to 25% of the total Order Book as at March 2023, as against 20% as at March 2022. Of the domestic Order Book, 28% of the orders are funded by multilateral agencies.

The share of the international Order Book marginally increased from 27% to 28%.

Consolidated Revenue from Operations

L&T Group recorded revenue of ? 183,341 crore during FY 2022-23, registering a growth of 17.1%. The growth was mainly achieved with the pick-up of execution momentum in project and manufacturing businesses and healthy growth in IT & TS businesses. The composition of international revenue at the group level is at 38% in FY 2022-23 compared to 36% in the previous year.

During the year, all the segments registered growth over the previous year. The revenue from the IT & TS segment continues to register industry-leading growth.

Operating Expenses and PBDIT

Manufacturing, Construction and Operating (MCO) expenses for FY 2022-23 at ? 116,615 crore increased by 16.7% over the previous year. These expenses mainly comprise the cost of construction materials, raw materials and components, subcontracting expenses and interest costs in the Financial Services business. This represents 63.6% of revenue, mostly in line with the previous year.

Staff expenses for the year FY 2022-23 at ? 37,214 crore increased by 25.3% over the previous year and as a percentage of revenue increased by 130 bps, reflecting a combination of manpower ramp-up and salary revisions. The Group continues to focus on productivity improvements, digitalisation and manpower optimisation across most of its businesses.

Sales and administration expenses at ? 8,758 crore is almost in line with the previous year at ? 8,734 crore. This represents 4.8% of revenue vs. 5.6% in the previous year.

The Groups operating profit at ? 20,753 crore for FY 2022-23 registered a growth of 14.0% y-o-y, largely due to improved activity levels. The EBITDA margin for the year however declined by 30 bps and is at 11.3%.

The impact of additional execution costs incurred in the Infrastructure segment, high commodity prices, one-time integration expense on the merger of erstwhile LTI and Mindtree, and higher staff costs impacted the Companys overall margin. At the same time, cost saving in projects of the Energy segment, higher NIM in Financial Services, improved ridership in Hyderabad Metro and lower provisions on contract assets and customer receivables partially mitigated the impact.

Depreciation and Amortisation Charge

Depreciation and amortisation charge for FY 2022-23 increased to ? 3,502 crore from ? 2,948 crore in the previous year, registering an increase of 18.8%, mainly on account of higher capex spends during the year.

Profit Before Interest and Tax

Segment-wise composition of PBIT for FY 2022-23 is represented below:

The segment-wise PBIT registered improvement over the previous year, majorly in Energy Projects, IT&TS businesses and Financial Services business. Further, the PBIT of Development Projects turned positive during the year primarily due to the value restatement for Nabha Power Limited (NPL), in line with the improvement in benchmark valuations due to the visibility of improved profitability and favourable outcomes of company-specific litigations.

Other Income

It mainly consists of profit on the sale of liquid / short-term investments and interest income. Other income at ? 2,929 crore improved by 29.2% over ? 2,267 crore, reflective of higher investible surpluses and efficient treasury operations.

Finance Cost

The interest expense for FY 2022-23 at ? 3,207 crore was marginally higher by 2.6% over ? 3,126 crore for the previous year. The reduction in average borrowing at a group level was partly offset by an increase in interest rates during the year. Further, refinancing of Hyderabad Metro term loans with market borrowings also contributed to the containment of the interest cost for the year.

Tax Expense

The Income Tax charge for FY 2022-23 was higher at

? 4,484 crore by 6.7% compared to ? 4,204 crore in the previous year on increased profits.

Exceptional Items

Exceptional items during the year mainly comprise divestment of the Mutual Fund business of the Financial Services, partially offset by a one-time charge on remeasurement of the wholesale loan assets of the Financial Services segment at fair value. The previous year mainly included divestment gain on the sale of L&T Uttaranchal Hydropower Limited, partly offset by tax liabilities on the transfer of L&T-Nxt to the erstwhile Mindtree Limited.

Consolidated Profit After Tax and EPS

Consolidated Profit After Tax (PAT) at ? 10,471 crore for FY 2022-23 increased by 20.8% over the previous year at

? 8,669 crore. The increase is mainly on account of growth in revenues and other income. Consolidated Basic Earnings per Share (EPS) for FY 2022-23 at ? 74.51 improved over the previous year at ? 61.71.

Return on Consolidated Net Worth

The Consolidated Net Worth, as at March 31, 2023, at

? 89,326 crore, reflects a net increase of ? 6,918 crore, as compared to the position as at March 31, 2022. The Return on Net Worth (RONW) for FY 2022-23 was higher at 12.2%, compared to 11.0% in the previous year, mainly on account of higher profits.

Liquidity and Gearing

Cash flow from Operations (including change in loans and advances towards financing activities) increased to ? 22,777 crore as compared to ? 19,163 crore in the previous year, supported by healthy execution and smart working capital management. During the year, additional funds were also generated mainly from the divestment of the Mutual Fund business of the Financial Services business, treasury and dividend income.

Funds were utilised mainly for repayment of borrowings of ? 4,832 crore, capital expenditure of ? 3,793 crore, and payment of dividend of ? 3,091 crore. Further, funds were applied for the purchase of current investments of

? 8,955 crore and net interest payment of ? 3,047 crore during FY 2022-23.

Consequently, there was a net increase of ? 2,893 crore in the cash balances as at March 31, 2023, compared to the beginning of the financial year.

Consolidated Fund Flow Statement

? crore
Particulars FY 21-22 FY 22-23
Operating Activities 19,163 22,777
Net Divestment 665 2,670
Treasury and Dividend Income 1,130 1,767
ESOP Proceeds (Net) 11 10
Source of Funds 20,969 27,224
Capital expenditure (net) 3,040 3,793
Repayment of borrowings 8,677 4,832
Purchase of Investments 2,422 8,955
Dividend Paid 2,528 3,091
Interest Paid 2,968 3,047
Payment to minority interest (net) 1,020 613
Increase in cash balance 314 2,893
Utilisation of Funds 20,969 27,224

The total Group borrowings as at March 31, 2023, was lower at ? 118,513 crore, compared to ? 123,468 crore as at March 31, 2022. The major decrease is in borrowings of the Parent entity, Financial Services and Nabha Power. At a Group level, the gross debt-equity ratio decreased to 1.14:1 as at March 31, 2023, from 1.29:1 as at March 31, 2022. The net debt-equity ratio improved to 0.62:1 as at March 31, 2023, from 0.81:1 as at March 31, 2022.

Details of significant changes in Key Financial Ratios:

In compliance with the requirement of listing regulations, the key financial ratios of the Group have been provided hereunder:

Sr. No.


FY 21-22

FY 22-23

% Growth


Gross Debt Equity Ratio





PBDIT as % of net revenue





Net Working Capital as % of Sales (Excluding Financial Services and Corporate)





Interest Coverage ratio (excluding Financial Services and Finance Lease Activity)




II. L&T Standalone

L&Ts Standalone financials reflect the performance of Infrastructure Projects, Energy Projects, Hi-Tech Manufacturing and Others. The Others segment comprises Realty, Construction & Mining Machinery, Rubber Processing Machinery, Smart World & Communication and E-commerce / Digital Platforms and Data Centers.

Brief summary of performance at Standalone level:

Particulars (? crore)

FY 21-22

FY 22-23

% Growth y-o-y

Order Inflow 118,956 149,984 26%

Share of international order inflow



Revenue 101,000 110,501 9%

Share of international revenue



Order Book 315,567 330,555 5%

Share of international order book



PBDIT 9,055 9,295 3%
PAT 7,879 7,849
Net Worth 67,114 71,528 7%
RONW (%) 12.2% 11.3%
EPS (? ) 56.09 55.85

Liquidity and Gearing

Business operations generated cash flows of ? 7,264 crore during the year, compared to ? 5,999 crore in the previous year. The increase is largely attributable to improved working capital management. The proceeds from cash generated through net divestment in S&A companies at

? 352 crore, treasury income of ? 1,323 crore and dividend income from S&A companies at ? 1,712 crore, has been utilised towards repayment of borrowings (incl. repayment of lease liability) of ? 2,027 crore, purchase of a short-term investment at ? 2,904 crore, in addition to capex payments of ? 2,236 crore, a dividend payment of ? 3,091 crore, and interest payment of ? 2,333 crore.

There was a net decrease of ? 1,930 crore in the cash balances as at March 31, 2023, compared to the beginning of the year.

Fund Flow Statement ? crore
Particulars FY 21-22 FY 22-23
Operating Activities 5,999 7,264
Net (Investment) / Divestment (667) 352
Treasury and Dividend Income 2,468 3,035
ESOP Proceeds (net) 11 10
(Increase) / Decrease in (2,164) 1,930
Cash Balance
Source of Funds 5,647 12,591
Capital Expenditure (net) 1,350 2,236
Repayment of Borrowings 4,236 2,027
(net of Additional Borrowings)
Purchase / (Sale) of (4,075) 2,904
Dividend paid 2,528 3,091
Interest paid 1,608 2,333
Utilisation of Funds 5,647 12,591

Total borrowings as at March 31, 2023, reduced to

? 18,151 crore, compared to ? 20,298 crore in the previous year. The loan portfolio of the Company comprises a mix of rupee and suitably hedged foreign currency loans. The gross debt-equity ratio reduced to 0.25:1 as at March 31, 2023, from 0.30:1 as at March 31, 2022. The Company remains debt-free after considering cash and cash equivalent during the year.


The Infrastructure Projects segment comprises the engineering and construction of:

(a) Buildings & Factories (b) Transportation Infrastructure (c) Heavy Civil Infrastructure (d) Power Transmission & Distribution (e) Water & Effluent Treatment (f) Minerals & Metals

Financial performance of the segment

The Infrastructure segment won orders worth ? 117,119 crore in FY 2022-23, higher by 25.2% over the previous year, with the receipt of multiple orders across various sub-segments. During the current year, the Buildings & Factories business registered growth with the receipt of some prestigious orders in the Public Space business. The Heavy Civil Infrastructure business registered growth on receipt of a mega strategic infrastructure order and the Water & Effluent Treatment business also received numerous orders for irrigation and wastewater treatment. The Minerals & Metals business performed well with the receipt of multiple orders in the ferrous metal space from a private client. For two years in a row, the Power Transmission & Distribution business has continued to benefit from Gigawatt-scale renewable orders from the GCC region. The decline in order inflow in Transportation Infrastructure is mainly due to the deferral of targeted prospects.

The share of international order inflow for the Infrastructure segment decreased to 22%, from 29% in the previous year, reflective of the buoyant domestic ordering environment. There are visible green shoots of pick-up in the domestic private capex as well.

The Infrastructure segment registered revenue of

? 87,823 crore for FY 2022-23 - a growth of 19.4% over the previous year. The growth was mainly due to a pick-up in the execution momentum of a strong and large opening Order Book. Revenue from international operations constituted 22% of the total revenue compared to 23% in the previous year.

The segments operating margin reduced from 8.2% to 7.0%, largely reflective of input price pressures, time and cost overruns in certain jobs and delayed customer claim settlements. The delay and disputes on additional claims from clients have created a timing mismatch in the books, consequently impacting margins. The benefits will accrue to the P&L as and when the claims get processed.

The funds employed by the segment at ? 24,577 crore as at March 31, 2023, registered a modest increase of 1.4% vis-?-vis March 31, 2022. The increase was contained mainly on account of improved working capital management partly offset by higher capex spends for projects.

Buildings & Factories


The Buildings & Factories (B&F) business is recognised for providing turnkey solutions for the entire spectrum of building construction, from concept to commissioning. The business is an industry leader in design-and-build (D&B) projects ranging from airports, hospitals, stadia, retail spaces, educational institutions, IT parks, office buildings, data centers, high-rise structures to mass housing complexes, cement plants, industrial warehouses, test tracks and other light factory structures. The business expertise in construction is powered by dedicated engineering design centres, competency cells, advanced formwork systems, mechanised project execution, a wide network of consultants and vendors, digitalised project control and a talented pool of employees.

The business is organised into the following Strategic Business Groups (SBGs):

Public Spaces, Airports & Factories SBG:

This SBG consists of the following three businesses:

? The Public Spaces business provides the design and execution of special structures like tall statues, metro stations, convention centres, marquee buildings, hotels, malls, integrated development and educational institutions ? The Airports business offers design-and-build solutions for passenger and cargo terminal buildings and their allied service structures, with integrated airport system solutions like baggage-handling systems, passenger-flow monitoring systems, passenger boarding bridges, visual docking guidance systems and other facilities ? The Factories business is a one-stop solution for the EPC requirements for cement plants, automobile plants, EV manufacturing, glass and paint manufacturing, warehouses, automobile test tracks and food processing plants

Health, Residential & Commercial Spaces SBG:

This SBG consists of the following four businesses: ? The Health business handles the design and execution of hospitals, medical and nursing colleges. Healthcare infrastructure is delivered with end-to-end healthcare facilities, including medical equipment, right from concept to commissioning.

? The Residential business is a prime EPC solutions provider of elite, affordable and mass housing projects. The business has expertise in executing tall towers and the development of mass-dwelling units. ? The IT Office Spaces & Data Centers business focuses on providing concept-to-commissioning services for setting up Data Centers, leveraging its strong mechanical, electrical and plumbing (MEP) competencies. It also offers turnkey office space solutions for Information Technology and Office spaces.

? The B&F Fast business explores and creates value from advanced construction technologies such as Prefabricated Prefinished Volumetric Construction (PPVC), modular construction, structural steel construction and 3D printing that will fast-track project delivery

The business offers total turnkey solutions with an in-house structural and architectural design using advanced systems like BIM 4D, 5D and BIM 360 field. The Engineering Design and Research Centre (EDRC), supports various business units with efficient engineering solutions and has proven capabilities in the Data Center segment as well.

This business is also a pioneer in implementing digital technologies across its entire spectrum of offerings, right from design to project execution/delivery. Digital technologies enhance project execution efficiency and help reduce execution timelines.

The business is known for constructing some of the tallest, largest and most complex and iconic structures across India and overseas.

Business Environment

The Governments emphasis on infrastructure creation continued with the release of new packages in mega-developments like High-Speed Rail and Central Vista. Further, revolving around the Governments vision to position India as a hub for Data Centers, the current year saw investment announcements and commitments from private players, both domestic and international. Healthcare infrastructure has taken the front seat in the focus of the Government, with an increased allocation of 2.1% of GDP.

The Governments focus on expanding and strengthening Indias manufacturing capabilities through PLI schemes, viz., Solar PV, Automobile and Auto Components, Advance Chemistry Cell (ACC) Battery, etc., has provided stimulus to factory capex.

The Real Estate market has recovered due to strong demand in residential real estate with housing sales registering healthy growth on the back of positive consumer sentiment.

The Construction industry is taking steps to reduce its environmental impact as global awareness of climate change grows. Customers are becoming more sustainability conscious and placing greater pressure on developers to lower the carbon footprint of new constructions. The increasing global focus on climate change could incentivise construction companies to factor sustainability into their projects, construction processes and designs. Industry leaders are looking for ways to reduce material waste from demolitions, switch to eco-friendly building materials and choose locally-sourced building products.

Major Achievements

Orders won:

? D2 Sabarmati Depot package, MAHSR to be developed on an 82-hectare land parcel in North Ahmedabad ? Kiran Nadar Museum & Convention Centre, Delhi – The Project involves the development of an eight-acre land parcel for the construction of an Art Museum and Convention Centre ? Construction of IKEA Meeting Place, Gurgaon ? Phoenix Commercial towers in Hyderabad with an approx. built-up area of 60 lakh sq. ft. ? Construction of state-of-the-art research and manufacturing facilities for Reliance Life Sciences Project, Nashik ? 2300-bed Government hospital in LB Nagar, Telangana

Key projects commissioned:

? Kempegowda International Airport T2, Bengaluru

? Seven Hospitals for Assam Cancer Care Foundation, Assam

? Birsa Munda Hockey Stadium, Rourkela, Odisha

? RAMCO Cement Plant at Kurnool

? IIT Hyderabad Phase 2 – Technology Innovation Park (TIP) Building & Research Centre Complex (RCC)

? JCB manufacturing facility at Halol, Gujarat

? Prestige Jindal City at Bengaluru, Karnataka

? International Terminal Building at Hyderabad International Airport, Telangana

? Wonder Cements Line 4, Nimbahera, Rajasthan

Other key achievements:

The business also achieved important milestones in the execution of major landmark projects:

? CIDCO Kharkopar – completed 96 flats in 96 days by achieving 3 days per floor slab cycle

? Structural works for Minerva Lokhandwala residential project in Mumbai were completed at 300 m height. This is one of the tallest residential towers in Mumbai City and the tallest building executed by L&T

? The Birsa Munda Hockey stadium at Rourkela (Odisha) was recognised by the Guinness Book of World Records as the worlds largest fully-seated hockey area with a seating capacity of 20,011 permanent seats. This stadium was completed in fifteen months and inaugurated on January 5, 2023

The business continues to focus on the implementation of Lean Practices across major projects. Some of the Lean Initiatives being implemented are Planned Percentage Complete (PPC) – to measure the efficiency of planning systems at projects, Last Planner System (LPS?) – to increase worker productivity and accountability; Constraint Identification – to identify bottlenecks and increase throughput, Variance & Root Cause Analysis to improve quality of work; 5S system to improve housekeeping and Safety, and Workmen Performance Measurement & Reward System. Extensive training programmes are conducted for staff and workmen to adopt these practices.

Adhering to L&Ts commitment to being the pioneer of new technologies in the country, the business has been a proponent of technologies like Volumetric (3D) Concrete Printing and Prefabricated Prefinished Volumetric Construction (PPVC). Following extensive research, the business received accreditation from the Building Materials & Technology Promotion Council (BMTPC) for the implementation of G+3 floors 3D concrete printing. And subsequently, as a major milestone, the business started receiving orders from external clients for the execution of projects using 3D concrete printing.

Digital tools are extensively used at project sites to improve project monitoring, quality and safety. The business has developed and implemented an in-house Predictive Analytics for Safety System (PASS) across many of its sites. This system predicts probable safety lapses at project sites by comparing various early EHS indicators and a huge volume of historical data from past projects. Additionally, pilot projects are being carried out using Artificial Intelligence (AI) in the form of visual analytics for hazard identification.

Targeted training programmes are conducted throughout the year for workmen, supervisors, staff and senior management to inculcate a pro-safety culture in the organisation.


The Indian Railways has undertaken several railway station redevelopment projects across the country. The Rail Land Development Authority (RLDA) has been entrusted with the responsibility to upgrade and modernise major railway stations across India.

The Government aims to transform India into a global sporting powerhouse by undertaking mega-sports infrastructure projects that will have a long-term impact on health, education and tourism. The Indian Government has proposed a sports budget of ? 3,397 crore for FY 2023-24. This is an increase of 11% over the previous years budget.

The Health sector has garnered significant attention from the Government after the pandemic. Both the Central and State Governments are focusing on building new hospitals and allied medical services like medical colleges on a large scale. We are also seeing significant investments from private players in the healthcare sector.

The residential real estate market in India witnessed astounding progress in 2022, setting new sales records of 68% y-o-y, further demonstrating the industrys prominence as one of Indias fastest-growing sectors. Indias housing market is expected to remain resilient despite rising interest rates and a weak global economic outlook. The increased allocation to housing projects under the Pradhan Mantri Awas Yojana by 66% to ? 79,000 crore will further boost the affordable housing segment.

The Indian Data Center Industry is witnessing meteoric growth with an expected CAGR of 11.4% in the next 5 years. The Data Center market is driven by the deeper internet penetration, increase in digital data traffic, public cloud services and higher expected growth in IoT. Many major private players are actively investing in this business.

There is increased optimism about the strong revival of the aviation industry. With many major international airports under construction across the country, the handling capacity across airports is expected to increase substantially in the next 2-3 years. Further investments are planned in the second half of FY 2023-24 by the Government and private players to augment the facilities and infrastructure of airports.

With many global manufacturing companies taking benefit from the PLI scheme, substantial investments are being envisaged in sectors such as automobiles and auto components, pharmaceuticals, electronics, food products, solar PV modules, Advanced Chemistry Cell (ACC) batteries, and drones and drone components.

With a slew of investments expected across various sectors in the coming years throughout the country, the business is well-placed to benefit from the expected large investments across them.

Transportation Infrastructure


L&Ts Transportation Infrastructure business is one of the leading contractors in India offering turnkey Design & Build / EPC solutions with single-point responsibility for all kinds of transportation infrastructure such as Roads, Runways, Bridges, Elevated Corridors, Railways, City Infra, Urban Transit and Airports. The business is organised into two Strategic Business Groups (SBGs), namely, Railways Business Group (RBG) and Roads, Runways & Elevated Corridors (RREC).

The Railway Business Group (RBG) is organised into the Mainline Business Unit (MLBU) and Metro Business Unit (MTBU). MLBU addresses EPC construction works in the domains of civil and trackwork, electrification and system integration, including signalling and telecommunication for all Mainline Railway Projects, Dedicated Freight Corridors, and Rail Links for Port, Mining and Power Plant facilities, etc. MTBU carries out EPC construction works involving ballastless trackwork, electrification and system integration for all Mass Rapid Transit System projects and Regional Rapid Transit System Projects in India and abroad.

The Roads, Runways & Elevated Corridors (RREC) Business Group is organised into the Roads & Bridges Business unit (R&B) and Formations & Structure Business unit (F&S). R&B provides EPC design-and-build construction services for all types of roads, bridges and elevated corridors, including all associated structures, cross-drainage, toll booths, wayside amenities, etc. In the Airport sector, the R&B business is involved in the construction of complete airside infrastructure, viz., runways, taxiways, aprons, airfield ground lighting, fuel hydrant systems, etc. The F&S business provides design-and-build construction services for civil works (earthwork, blanket, earth-retaining structures, cross drainage, etc.) for all types of Railway projects such as Dedicated Freight Corridor (DFCC) projects, High-Speed Rail and Urban Railway Networks.

The business has Engineering Design Centres located at Mumbai, Faridabad and Chennai. It also has a Competency Development Centre in Kancheepuram and a Workmen Training Centre in Ahmedabad.

Business Environment

Railway Business Group

The Railway sector has been on a high growth trajectory for the past few years. The pace of infrastructure creation has been at an all-time high with new and innovative methods and financing of construction. With an emphasis on the introduction of High-Speed and Semi High-Speed Corridors, Regional Rapid Transport Systems, Suburban Rail Systems, first and last-mile connectivity projects, modernisation of railway stations, implementation of Automatic Train Protection System ‘KAVACH, manufacturing of Vande Bharat trainsets and Electric Locomotives, the sector has been abuzz with activity, thereby opening up various opportunities for the business.

The business has been consistently recognised as a full-range rail system integrator through projects of national importance, viz., DFCC and other integrated transit projects, viz., Mauritius Metro and Dhaka Metro. It has built capabilities in all 3 railway domains including track construction, overhead electrification, and signalling and telecommunication.

The Indian Railways (IR) is on track to achieve its target of 100% electrification by the year 2024. Apart from Mission Electrification, IR has commenced the upgradation of the existing electrification system to 2 x 25 kV electrification to facilitate higher speed, haulage and improved system efficiency on major routes.

Roads, Runways and Elevated Corridors

The budgetary support for the Roads and Bridges sector has witnessed a steady increase of more than 58% over the last 4 years. Out of the capex announced under the National Infrastructure Pipeline, 18% is earmarked for Roads and Bridges, which augurs well for this business.

Over the last 7 years, the length of National Highways has gone up by 50% from 91,287 km (as of April 2014) to 144,634 km (till Jan 2023) and the length of expressways have expanded by 4,068 km during this period.

Also, in view of the exponential increase in traffic over the years in urban areas, the Government has shifted its focus on developing many new Elevated Corridor / Flyover projects across major cities, with the primary aim of decongesting urban roads and highways.

The Airports sector has not seen any major developments in the year. However, few opportunities are in advanced stages and are expected to be awarded soon.

Major Achievements

Orders won:

Major orders received during the year:

? Railway Electrification Works including Rigid Overhead Conductor Rail System & SCADA in Jammu & Kashmir from Indian Railways ? Multiple Track Works packages and overhead electrification works for Chennai Metro Rail Project from Chennai Metro Rail Limited ? Multiple Ballastless Track works for Bhopal Metro Rail Project from Madhya Pradesh Metro Rail Corporation Limited ? Construction of 4-Lane Flyover from Siramtoli Chowk to Mecon Chowk in Ranchi from Road Construction Department, Jharkhand

Projects completed:

The business has completed / commissioned the following projects:

? Phase 2B, 2C and 3 of Integrated LRT System Mauritius Metro Express package Phase 3 was inaugurated by the Honble Prime Minister of Mauritius in January 2023

? Phase 1 of the Dhaka Metro Line 7 from Uttara to Agargaon (25 TKM) including Uttara Depot (19 TKM) was commissioned in December 2022 ? Metro Link Express for Gandhinagar and Ahmedabad (MEGA) Track Package in Gujarat (66 TKM) commissioned in October 2022 ? EDFC CP 105 package (116 TKM) Overhead Electrification (OHE) between Dadri and Khurja in Uttar Pradesh commissioned in December 2022 ? EMP 4 package Electrical and Mechanical Works for WDFC involving 2 x 25 kV, High Rise Overhead Electrification (OHE) has been commissioned in September 2022 ? RVNL Bhatni Package-2 (19 TKM) priority section between Indara - Kiriharpur including 2 major yards commissioned in March 2023 ? WDFC CTP 3R package priority section form Iqbalgarh to Sanand North (332 TKM) commissioned in September 2022 ? Mumbai-Nagpur Expressway Project Package 10 (58 km) commissioned and inaugurated by the Honble Prime Minister of India in December 2022 ? Mumbai-Vadodara Expressway Project Package 1 (24 km) commissioned and handed over in August 2022 ? Delhi-Vadodara Expressway Project Package 22 (25 km) commissioned and handed over in September 2022 ? Pragati Maidan Project (priority section) commissioned and inaugurated by the Honble Prime Minister of India in June 2022

? Khulna Mongla Bridge Project commissioned and jointly inaugurated by the Honble Prime Ministers of India and Bangladesh in September 2022 ? Tallah Railway Over Bridge commissioned and inaugurated by the Honble Chief Minister of West Bengal in September 2022


Railway Business Group

As per the National Infrastructure Pipeline, investments worth ? 13.67 trillion are proposed to be made in the Railways sector during the period from 2019-20 to 2024-25 to enhance track capacity, improve freight efficiency, augment the speed of trains thereby, enhancing safety and ensuring better connectivity.

The Indian Railways (IR) has been focusing on network expansion in the past few years. In the Union Budget 2023-24, the Railways sector has received the highest ever capex allocation of ? 2.6 trillion, with many projects aimed at capacity augmentation and traffic decongestion in the IR network. The prospects in the upcoming 3 to 4 years include 7,000 km of new lines (? 70,000 crore), Doubling / 3rd Line expansion of 8,000 km (? 80,000 crore).

In the High-Speed Rail (HSR) segment, the Electrical System packages and balance Track packages of the Mumbai–Ahmedabad Corridor are expected to be tendered during the FY 2023-24. IR has announced the plan to develop 7 new high-speed rail corridors in the medium to long term, the feasibility studies of which have been initiated. In recent years, there has been a thrust for the development of Semi-HSR Corridors projects, of which Track and Systems packages worth

? 25,000 crore are expected to be finalised in the next 5 years.

In the Regional Rapid Transit System (RRTS), civil packages and system tenders in the next round are expected under the four RRTS corridors being implemented by the National Capital Region Transport Corporation (NCRTC).

On the DFCC front, progress towards new freight corridors, viz., East Coast (1,114 km), East-West (2,328 km) Corridors and North-South Corridor (2,327 km) are relatively slow. Projects worth a total of ? 58,500 crore are expected to be finalised in the next 5 years.

There is continued thrust on building new Metro / MRT Systems and expanding existing Metro networks as MRT facilitates Transit Oriented Development, easy movement across the city and reduced carbon footprint. Systems orders are expected to be finalised across 4 Metros in the next 2 years. The business outlook for the next 5 years includes 12 new projects (450 km) in the Track and Systems domain.

Roads, Runways and Elevated Corridors

Under the National Infrastructure Plan (NIP), the Government has planned to expand the National Highway network by ~ 60,000 km by 2025 in major economic corridors, strategic areas, and Elevated Corridors & Flyovers in major cities such as Delhi, Chennai, Kolkata, Mumbai and Bengaluru, with an investment outlay of ? 20.33 trillion. A daily average of constructing 23 km of roads has been achieved in March 2023.

In the Airports sector, the Government has envisaged 50 additional airports, helipads, water aerodromes, and advanced landing grounds to improve regional air connectivity.

~ 100 critical transport infrastructure projects for first and last-mile connectivity for ports, coal, steel, fertiliser and food grain sectors have been identified and are expected to pick up steam.

International Front

While the business continues to focus on neighbouring countries like Bangladesh, it is also strongly examining an entry into ASEAN, Middle East, North and East African countries where L&T has a strong presence and footprint.

Heavy Civil Infrastructure


The Heavy Civil Infrastructure business is a market leader in EPC projects in core civil infrastructure segments that are crucial to the Indian economy, viz., Metro Rail Systems, High-Speed Rail, Nuclear, Hydel and Tunnels, Marine Structures, and Defence Infrastructure facilities.

The business has a strong domestic presence. The ability to provide ‘tailor-made design-and-build and EPC solutions to suit the specific requirements of customers for complex infrastructure projects has enabled the business to become the market leader in India. Dedicated design and technical centres, competency cells, specialised training centres, digital project management, and a talented pool of employees help the business to sustain a leading role and secure major orders.

As an industry leader in augmenting capabilities for urban mass rail transit systems, the business is currently involved in the construction of various metro rail packages in Chennai, Bengaluru, Mumbai, Patna, New Delhi and NCR, in addition to the construction of the C4 section of the countrys first High-Speed Rail Corridor connecting Mumbai to Ahmedabad.

The latest construction technologies including in-house fabricated Full Span Launching Equipment, Straddle Carrier and Girder Transporter are being used in marquee projects, as a part of the ‘Make in India initiative.

The Nuclear segment offers turnkey services including civil, mechanical, electrical and instrumentation, seismic qualification and modular construction technology. Its expertise extends to both Pressurised Heavy Water Reactor (PHWR) and Light Water Reactor (LWR) technologies. Presently, the business is involved in nuclear power plant construction at Kudankulam, Kalpakkam, Tarapur, Kakrapar and Rawatbhata.

The Hydel and Tunnels segment offers complete EPC solutions for hydroelectric power projects, large-diameter transport / water tunnels, pumped storage plants and complex irrigation projects. The business also provides expertise for road and railway tunnelling projects, which contributes to nation-building. Presently, the business is involved in the construction of hydel and tunnel projects at Dummugudem in Telangana, Mumbai in Maharashtra, Neemuch in Madhya Pradesh, Lower Kopili in Assam, Rishikesh-Karnaprayag in Uttarakhand and Pakal Dul in Jammu.

The Marine Structures segment has extensive experience in greenfield ports, shipyard structures and seawater intake systems along the Indian coastline. It provides EPC solutions for breakwaters, berths, jetties and wharfs, dry docks and shore protection structures. It has unique expertise in providing design and construction solutions for state-of-the-art ship lift structures.

L&T Geostructure, a wholly-owned subsidiary, engages in the foundation and ground improvement related projects. It has a strong, professional and a specialised team with knowledge of design, equipment and methods to execute and supervise sophisticated foundation works. The business has expertise in deep piling and diaphragm walls, multi-cellular intake wells for river-linking, marine terminals with berths and jetties, and deep cut-off walls.

Business Environment

The Government is keen on building core infrastructure that is critical for economic growth as evidenced by the enhanced budgetary allocation of ? 10 trillion into various areas like transportation, energy, water and urban development.

Rapid urbanisation in India is driving the demand for better urban mobility. ICRA estimates that metro rail projects will provide business opportunities of about ? 80,000 crore to the construction industry in the next five years and consequently, the Metro Rail network is expected to expand by 2.7 times in next 5 years. With over 12 corridors proposed, Semi-High Speed and High Speed Rail projects are also being prioritised. Focus on reduction in energy consumption and carbon neutrality in this sector, places hyperloop as an attractive proposition for the national transporter. Indian Railways along with IIT-Madras are collaborating on the development of an indigenous Hyperloop system.

For India to achieve the ambitious target of 500 GW of non-fossil fuel based generation capacity, the country will need to add 25-30 GW capacity annually for the coming years. For the current year, USD 25 billion investment is estimated and the Government is taking steps to increase investment towards offshore wind, pumped storage, hydel power and nuclear power, etc.

India plans to increase its nuclear power generation threefold in the next decade to meet its growing energy needs and reduce its carbon footprint. The focus will be on pressurized heavy-water reactor projects, which are the mainstay of Indias nuclear power programme and on capability improvements to achieve the fleet mode construction goals. As the country explores Small Modular Reactor technology, which could be factory built, the business will also be focusing on building capability on the same.

Maritime India Vision 2030 has identified initiatives for the development of ports. Investment opportunities of about ? 1 trillion to ? 1.25 trillion are expected, which will result in increased capacity and also build world-class infrastructure at Indian ports.

The Government is focusing on building new capacities and upgradation of existing defence infrastructure with a budget allocation of ? 23,000 crore. This will lead to the creation of opportunities in various Defence Infrastructure projects including Naval infrastructure facilities.

Major Achievements

Orders won:

? Chennai Metro Rail Ltd. - Phase 2 Package CP08 EV-01 for construction of an elevated viaduct of approx. 10 km including an elevated ramp and 10 elevated metro stations between Nehru Nagar and Sholinganallur ? NPCIL - Rajasthan Atomic Power Plant for construction of natural draught cooling towers 7 & 8, cooling water pump houses and large diameter cement mortar lined and coated steel pipes (CMLC) ? Greenko - Gandhi Sagar 1440 MW Pumped Storage Plant in Madhya Pradesh for construction of Upper Dam, Intake Structure with Approach Channel, Steel Lined Buried Penstock / Pressure Shaft (Vertical & Horizontal), Surface Powerhouse, Draft tube tunnel, Tailrace Outlet Structure and Tailrace channel ? Uttarakhand Jal Vidyut Nigam Limited - Lakhwar Multipurpose Project for construction of 300 MW Lakhwar multipurpose hydropower project in Uttarakhand

Key achievements:

? Set a world record of 456.724 m in tunnel boring in the slurry TBM category (11-13 m dia.) in an urban environment at the Mumbai Coastal Road Project, Package 4 in the month of July 2022 ? Completed 108 m and 1,025 m of NATM (New Austrian Tunnelling Method) tunnelling in a single day on August 23, 2022 and 25 working days in the month of August 2022 respectively at the RVNL Package 2, Uttarakhand ? TBM relaunch in a record 15 days after completion of tunnelling at Bangalore Metro Rail Corporation package RT 03 in the month of September 2022 ? TBM assembly completed in 52 days in Pakal Dul in the month of October 2022 ? Record concreting of 11,050 m3 in KKNPP 5&6 (Kundankulam Nuclear Power Plant) for the raft slab


Considering Mission 2070 Net Zero India, the country is to focus on green construction technologies in future infrastructure projects. Carbon-efficient design (modular design), adoption of low-carbon construction processes (low emission materials such as fly ash) and enforcement of building energy codes are a few initiatives suggested by World Economic Forum in the Mission 2070: A Green New Deal for a Net Zero India white paper. The thrust on sustainability is expected to increase in the coming years, providing the necessary boost for sustainable infrastructure such as Metros, Hydel and Nuclear businesses.

The Government is also working on an investment plan of USD 750 billion to strengthen railway infrastructure and envisioned the Maritime India Vision 2030, which estimates massive investments in world-class infrastructure development at Indian ports. Further, there is an increasing thrust to expand metro services, being one of the low-carbon emission transport systems, to improve urban mobility. The Government is also considering the implementation of Mass Transit Systems such as Metro / Metro Lite / Metro Neo / Personal Rapid Transit System in Tier 1 and Tier 2 cities keeping in view the growing importance of the transport sector in the citys overall development.

The Nuclear business is expected to continue its growth along with a continued focus on 10 Pressurised Heavy Water Reactor (PHWR) projects. The growing energy demand in India will make nuclear power a major source of renewable power, as fossil fuels are scarce in the country.

Infrastructure as a sector will continue to attract strong capital inflows, especially with structural reforms undertaken in the recent past, digitalisation of logistics and infrastructure-focused wealth funds to aid investment formation. These investments have the potential to create a true multiplier effect to catapult the economy to a higher growth trajectory.

Power Transmission & Distribution


L&Ts Power Transmission & Distribution business vertical is a pioneering EPC player, providing technology-focused, end-to-end solutions for enabling access to clean and reliable electricity. It offers integrated EPC services and related digital solutions, starting from the establishment of Solar PV plants to smart, efficient transmission and distribution networks till the last-mile electrification. It serves Utility, Industrial and Infrastructure customers in 30 countries across the SAARC, ASEAN, the Middle East, Africa, North America and CIS regions.

The business is broadly organised into four major groups, viz., Transmission & Distribution (Domestic) SBG, International Transmission & Distribution Business Unit, Renewables SBG and the Digital Energy Solutions business, as under:

Transmission & Distribution (Domestic): This business group caters to various T&D utilities and developers, along with the bulk power supply consumers like metros, airports, etc.

The Substation business unit provides turnkey solutions for Extra High Voltage (EHV) air-insulated / gas-insulated substations up to 1200 kV, Flexible AC Transmission Systems (FACTS), devices such as Static Synchronous Compensator (STATCOMs) and Static VAR Compensator (SVCs), Digital Substation related solutions and EHV cable systems.

The Transmission Line business unit provides complete EPC solutions for overhead transmission lines. It is well integrated with the digitally-driven, power manufacturing units which has a combined capacity to produce more than 1.5 lakh tonnes of tower components per annum. The Kancheepuram manufacturing facility also houses the world-renowned Tower Testing and Research Station which provides its design and testing services to clientele from 33 countries.

The Power Distribution business unit has been at the forefront of taking electricity in an efficient manner to all by providing a range of EPC services related to urban / rural electrification, augmenting, reforming and strengthening of high voltage and low voltage distribution networks, power quality improvement works and advanced distribution management solutions.

International T&D units: This business group provides the entire spectrum of power T&D-related services in the Middle East, Africa and ASEAN regions.

Over the past three decades, the Middle East business unit has earned a strong reputation among the utilities and oil companies in Saudi Arabia, UAE, Oman, Qatar, Kuwait and Bahrain, having executed several marquee projects. It enjoys an enviable track record and garners a significant share of the T&D projects awarded every year.

Larsen & Toubro Saudi Arabia LLC (LTSA), a wholly-owned subsidiary, provides engineering, construction and contracting services in the sphere of transmission and distribution in the Kingdom of Saudi Arabia.

The fast-expanding Africa business unit has executed several landmark projects in Algeria, Egypt, Morocco, Kenya, Ethiopia, Tanzania, Uganda, Botswana, Mozambique and Malawi. It has made further inroads into Western and Northern Africa, with ongoing projects in Guinea, Cameroon and Tunisia. With the regional offices strategically located in Nairobi, Casablanca and Accra to serve the vast continent, the business has earned a coveted position, with a sizeable market share in the addressable segment.

In the ASEAN region, L&T is an established international T&D player, holding a portfolio of prestigious projects spread across Malaysia, Thailand, Myanmar and the Philippines. The offices in Singapore, Bangkok and Jakarta serve as the touchpoints for the electricity companies in the region.

Renewables: This business group is a single-stop EPC service provider globally for GW-scale Solar PV, Energy Storage, Microgrid and Hybrid Renewable Projects. There are very few players with such strong experience and expertise in different module technologies, module-mounting structures and storage types. The business group has accumulated in-depth engineering and construction know-how to execute a vast range of renewable projects, be it hybrid, floating or linear, with best-suited technologies for terrain type and tracking. The container integration facility at Kancheepuram augments the capabilities of the business with an annual capacity to integrate ~400 MWh of battery energy storage system with associated intelligent management and control systems.

Digital energy solutions: This arm of L&Ts Power T&D business provides electricity-related consulting and digital solutions globally through its Spark platform as well as a multitude of software products and solutions. Its offerings include hybrid energy management systems, energy storage controllers, substation data platforms, power system cyber security needs, etc. Driven by powerful algorithms and simulations, the solutions offered by this unit enable customers across India, the Middle East and the USA to build resilient future-ready systems.

The Power T&D business vertical aims to provide a green technology path to clean energy transition in India and abroad, while enabling the customers and prosumers with the highest standards of reliability, availability and efficiency of power transmission and distribution networks.

Business Environment

The renewable energy boom, especially in the Middle East, has paved the way for a plethora of opportunities in both Solar EPC and related transmission networks. As part of the National Renewable Energy Programme, the Kingdom of Saudi Arabia intends to increase the share of renewable generation in its energy mix. As a result, several GW-scale renewable energy projects and related 380 kV transmission network-strengthening projects have joined the fray.

In India, during the latter part of the year, several state DISCOMs finalised orders under the Reforms Based Results-linked Distribution Sector (RDSS) Scheme. Reducing Aggregate Technical & Commercial (AT&C) losses is an important objective towards achieving financial sustainability for distribution utilities.

The much-delayed transmission system packages related to renewable energy evacuation in Rajasthan and Gujarat were cleared.

Project progress was calibrated and project schedules were realigned during most parts of the year due to intermittent supply chain disruptions and commodity price volatility.

Major Achievements

Orders won:

? 3 GWp+ Solar PV Plant EPC orders in the Middle East ? 90 MW Floating Solar Plant in Madhya Pradesh ? 765 kV Substations and Transmission Lines related to Renewable Energy integration in Rajasthan, Gujarat and Andhra Pradesh ? 400 kV Gas Insulated Substation in West Bengal ? Advanced Distribution Management System order in Mumbai ? Distribution Infrastructure Improvement projects in Rajasthan, Gujarat and Chhattisgarh ? 380 kV and 230 kV Substation packages in Saudi Arabia ? 380 kV Overhead Line packages in Saudi Arabia ? 132 kV Substation packages in UAE

? 400 kV Transmission Line in Tunisia ? 500 kV Transmission Line in Thailand

? 275 kV and 132 kV Transmission Line, Substation orders in Malaysia

? Digital Solutions for managing EV Charging Infrastructure and for integration of Renewable Power Generation in USA

Projects completed and commissioned:

? Three 220 kV high-altitude Substations in Nepal ? 400 kV Substation in Tamil Nadu ? 376 km of 765 kV and 400 kV Transmission Lines for strengthening of Eastern Grid ? 170 km of 400 kV Transmission Line in West Bengal ? Distribution Infrastructure improved by adding 3,000+ Ring Main Units and over 3,800 km of cable conversion ? 484 MWp Solar PV Plants in India and Middle East, including a 20 MW Floating Solar Plant ? 20 Gas Insulated Substations and 476 km of overhead / underground transmission corridors in the Middle East, including the power evacuation substations meant for FIFA World Cup in Qatar ? 5 EHV Substations, 378 km of EHV Transmission Lines and 733 km Distribution Lines in Africa ? 500 kV and 230 kV Gas Insulated Substations in Thailand

Significant Initiatives

? Machine Learning-based design optimisation tools capable of handling multiple variables have been deployed for engineering and design ? First time in India: Using a precast method for cable jointing bay in a metro power supply system project, resulting in faster completion

? Time benefits have been realised by applying Lean Construction and Scrum principles for select construction activities in UAE projects


The Transmission System Plan for the evacuation of 500+ GW Renewable Energy before 2030 provides a workable roadmap. The revival in the finalisation of deferred Tariff-based Competitive Bidding (TBCB) orders is a positive sign. The cross-border interconnections, network expansion fuelled by demand growth in states and neighbouring countries will lead to improved opportunities in substations and transmission lines.

On the distribution front, the Supervisory Control and Data Acquisition (SCADA) / Advanced Distribution Management System (ADMS) packages and UG Cabling packages of the distribution modernisation programme are expected to gain thrust.

With the PLI scheme for Module Manufacturing seeing budgetary allocations and Renewable Energy Implementation Agencies (REIAs) setting a target to go for bidding of 50 GW capacity every year for the next 5 years, the domestic solar EPC will witness substantial potential. Several GWh scale battery energy storage systems (BESS) projects and floating solar projects are also on the anvil.

The Union Budget 2023-24 from the Government of India has laid emphasis on the Green Hydrogen Mission and HVDC corridors. The traction on offshore wind generation is another advantage. The initial wins and building up of credentials in the Electrical Vehicle Charging Infrastructure space augurs well for the emerging opportunities. Green shoots towards establishing a carbon credit market in India are seen, which may lead to additional business opportunities. The pace of order finalisation in election-bound states is a factor to keep an eye on.

There are visible opportunities in international markets as well. The Middle East region has plans to increase renewable energy capacity by another 70 GW before 2030. Country-level transmission system expansion projects, regional interconnection projects and utility infrastructure requirements for tourism and industrial hub-related giga projects continue to provide substantial opportunities in the Middle East.

The emphasis on ‘Just Transition to a green economy entails investments for improving electricity access and regional interconnections in Africa. The ‘Plus One strategy for manufacturing-related investments may fuel demand growth in the Far East. Targeted prospects from select countries in Africa and a stable inflow from the Far East, especially Malaysia and the Philippines, are expected to boost growth on the international front.

The Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA) in the USA are expected to unlock huge power system-related opportunities with resultant potential for Digital Solution offerings. In India and elsewhere, with an increasing renewable mix and prosumerism, the need for modernisation to bring in discipline and accuracy in the forecast, scheduling, dispatch and real-time control has increased tremendously. Such developments provide an opportunity for profitable growth through smart digital energy solutions.

With a strong Order Book in hand and being better positioned to garner ample prospects visible in both domestic and international markets, the business will target selective large opportunities with the intent of scaling up the business to the next level.

Water & Effluent Treatment


L&Ts Water & Effluent Treatment business specialises in building comprehensive water management infrastructure with capabilities covering engineering, design, procurement, construction and commissioning of water and wastewater treatment plants by providing end-to-end solutions for drinking water, irrigation, wastewater and industrial effluent treatment. The division caters to various clients such as irrigation departments, municipal corporations, industrial units and more. The solutions include technologies such as conventional and advanced treatment processes, membrane-based filtration, desalination, sewage treatment, effluent treatment, recycling and reuse, and Zero Liquid Discharge (ZLD) systems.

L&Ts Water & Effluent Treatment business is organised into 3 verticals – (i) Water & Wastewater (ii) Irrigation, Industrial & Infrastructure (iii) Water International

The Water & Wastewater business vertical encompasses a wide range of solutions for rural and urban water supply, water management and wastewater treatment.

The Irrigation, Industrial & Infrastructure business vertical caters to the needs of agriculture and industrial sectors by providing solutions for mega and micro irrigation, industrial water systems, effluent treatment, desalination and smart water infrastructure. It also includes the development of smart water infrastructure solutions, leveraging advanced technologies for efficient water management.

The Water International business vertical lays its focus on the international markets and continues to tap business opportunities in these markets, with a focus on regions such as the Middle East, East Africa, and SAARC (South Asian Association for Regional Cooperation) countries.

Business Environment

With COVID retreating, the business witnessed a steady recovery during FY 2022-23 by winning prestigious orders and ramping up execution activities, despite price pressures emanating from supply chain disruption caused due to the Russia-Ukraine crisis. The business has maintained a steady pace of growth capitalising on the increased budgetary allocation towards irrigation and water supply schemes. The business did well in its journey to become a technology-driven EPC player by bagging a slew of orders in the area of specialised water and waste treatment, primarily from states like Madhya Pradesh, Maharashtra, Odisha and Karnataka.

The water demand in the Middle East is expected to grow significantly as the business foresees significant spending in the areas of wastewater treatment and desalination. The water sector in the African subcontinent is seeing increasing thrust from multilateral agencies focused on social sector lending in areas of drinking water supply and wastewater treatment.

Despite the increased competitive intensity, the business has been able to sustain and grow due to its cost leadership, adoption of advanced technologies and various digitalisation techniques and is on course to transform itself into a technology-led EPC player.

Major Achievements

Orders won:

? 360 MLD Wastewater Treatment Facility at Bandra, Mumbai ? Hatpipaliya Lift Irrigation Project, Madhya Pradesh ? Kukshi Micro Irrigation Project, Madhya Pradesh ? Kutch Irrigation Scheme, Gujarat ? Parallel Carrier System to the Rajiv Gandhi Lined Canal, Jodhpur, Rajasthan ? Masalia Ranishwar Mega Lift Irrigation Scheme (LIS), Dumka, Jharkhand ? Lower Suktel Irrigation Project, Odisha

Major projects commissioned:

Over 1.5 million people benefitted from the commissioning of 10 projects during FY 2022-23. Some of the major projects commissioned during the year are: ? 100 MLD Desalination Plant, Dahej, Gujarat ? Chhaigaonmakhan LIS, Madhya Pradesh ? Alirajpur LIS, Madhya Pradesh ? Bhima LIS, Karnataka ? Harapanahalli LIS, Karnataka ? Athikadavu Avinashi LIS, Tamil Nadu ? Saidpur Sewerage Network Project, Bihar

Significant Initiatives

The following strategic initiatives were implemented during the year for the effective working of project sites and to build on the foundation of an agile culture: ? To fully automate the design process and generate uniform design documents with high precision, an in-house digital design tool WET Desk was developed. It is a futuristic and innovative digital solution, free of any manual intervention. ? Digital Stores were launched which help in efficient material issues, real-time cost booking and easy reconciliation, while offering secure transactions powered by OTP verification ? In the current year, a state-of-the-art laboratory ‘Water Technology Centre (WTC) has been established in Kancheepuram for research, development and innovation in water and wastewater treatment technologies. The laboratory is a testimony to L&Ts commitment to research and innovation in the field of water and effluent treatment, and the Companys focus on developing cutting-edge solutions to address water challenges in the region and globally.

? In order to reduce the impact of volatile commodity prices on input costs, the business is entering into pre-tender pricing agreements with key vendors and increasingly focusing on the Just-in-Time Model for material procurement, based on the availability at work fronts ? Water projects, being cross-country in nature, involve a lot of local stakeholders engagement for securing right-of-way, which leads to delays in project execution.

In order to overcome the challenges faced, a task force team with members having relevant experience in industrial relations and ex-Government officers from various departments has been formed ? We further aim to set new benchmarks in the industry and deliver exceptional value to our clients by implementing cutting-edge technologies such as drone deployments, LiDAR surveys and ML / AI to automate progress monitoring, thereby enabling the project teams to identify potential bottlenecks and make informed decisions for timely completion.


Domestic water infrastructure prospects possess tremendous potential on the back of a large unserved population, rapid urbanisation, industrialisation and climate change. Various schemes have been launched by the Government to tackle water scarcity, improve sanitation and water quality. In the coming year, the business could see more opportunities under the Governments AMRUT 2.0 scheme which aims to provide water supply through functional taps to all households and coverage of sewerage management in 500 cities.

The Indian Governments Jal Jeevan Mission aims to provide piped drinking water to 191 million rural households by 2024. Since its inception, over 80 million households have been provided tap water. With the General Elections scheduled for 2024 and several state elections around the corner, the Government is working on a war footing to monitor the progress and hence, the prospects in the near term appear abundant.

The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has an outlay of ? 93,068 crore spread over a couple of years and will potentially benefit about 22 lakh farmers. A wide array of prospects is visible in macro and micro irrigation through this scheme.

With growing water scarcity in many parts of the world, desalination is emerging as a viable solution to meet the water needs of coastal communities and industries. The business delivered 100 MLD desalination plants in the current year within the stipulated time, a testament to its execution, technology and process expertise.

The Indian Government has identified several key industrial corridors for development, including the Delhi-Mumbai Industrial Corridor (DMIC), Chennai-Bengaluru Industrial Corridor (CBIC) and others. The business could benefit from this by providing smart infrastructure solutions in the areas of water supply, wastewater management and other amenities to such zones.

The focus on sustainable water solutions, viz., groundwater recharge and water reuse, has increased since the emergence of ESG, thereby leading to improved business prospects.

On the international front, the business would focus on building partnerships and winning contracts in the Middle East, South Asia and Africa to diversify its revenue streams and expand its global footprint.

Minerals and Metals


The Minerals & Metals (M&M) business offers complete EPC solutions for the Minerals & Metals sectors across the globe. The business undertakes end-to-end engineering, procurement, manufacturing, supply, construction, erection and commissioning of projects covering the complete spectrum from mineral processing to finished metals.

The business also offers comprehensive product solutions with an array of customised mineral crushing solutions and equipment for varied applications, viz., surface miners, material handling, high-speed rail, steel plant machinery and other custom-made critical equipment and complex assemblies catering to core industrial sectors including Mining, Steel, Non-ferrous, Ports, Fertilisers, Cement, etc.

The business complete of product solutions is backed by five decades of experience and knowledge, in-house design resources, state-of-the-art manufacturing capabilities, as well as providing after-sales product support, and value-added, cost-effective services to ensure higher uptime. The manufacturing centres are in Kansbahal, Odisha and Kancheepuram, Tamil Nadu.

Business Environment

Domestic Business

India has witnessed a gradual and healthy revival of economic activity in the post-pandemic period. Riding on improved economic activity, a steady rise in demand and consumption of ferrous and non-ferrous metals is visible, both in domestic and international markets.

The states impetus to infrastructure development and the ‘Make in India initiative has played a significant role in boosting metal consumption. All the metal producers have been witnessing improved capacity utilisation and higher sales consistently over the last two years. The improved volumes, coupled with better realisations, have helped the industry players to substantially de-leverage their balance sheets.

With these positives, all major public and private sector metal producers in India are in various stages of a fresh Capex cycle due to the adoption of large modules of expansion plans.

Given the exhaustion of high-quality ore and mineral reserves and policy framework revolving around the use of lower-quality ores, it is now imperative for the industry to adopt beneficiation and pellet plants which will supply improved raw material to steel plants. The business has already geared up its knowledge base and resources to grab this upcoming opportunity.

The significant rise in demand for copper and aluminiumover the past years has raised a critical need to establish large-sized smelter units to keep up with the pace of rising demand. The recent allocation of mines will facilitate capacity expansion in the Aluminium sector. The discovery of lithium deposits for the first time in the country will fuel the industry growth further.

The M&M business, by virtue of its long-standing associations with almost all major metal producers in India, is confident of garnering a major share of these opportunities.

International Business

The GCC countries continue to invest in various industrialisation initiatives revolving around mining and minerals as a means of diversifying their current oil dependent economies. Amongst the Middle East countries, Saudi Arabia has been the frontrunner in new mineral exploration due to an abundance of reserves. UAE and Oman are emerging destinations for the next phase of the iron-making facilities expansion, offering lower power tariffs and flexible policies to promote ease in setting up new business ventures.

New projects lined up in Iron & Steel, Aluminium, Gold, Phosphates and new-age minerals provide opportunities for the business to offer the full spectrum of comprehensive services.

In Africa, minerals continue to be the mainstay core sectors as many of the countries are rich in a wide variety of valuable minerals and metals. However, the scale of plants is mostly restricted to ore-to-port which limits the entry of business to fewer countries, i.e., those who have opted for the downstream extraction chain to enhance value creation.

Product Business

The Product Business has been actively pursuing prospects in select international markets – more precisely, across Africa, the Middle East and Australia for a variety of products. The growth of core products in the domestic market (like Crushing Systems, Surface Miners, Material Handling Equipment, High-Speed Rail Equipment and Port Cranes) is primarily driven by movement in the following industrial sectors:

Cement Sector: The cement segment in India is expected to grow at a CAGR of 4-5% over the next four years, with large investments in greenfield and brownfield projects. All the major players are undertaking ambitious expansion plans to capitalise on this growth potential. Overall, the segment is poised for significant positive growth in the coming years. The business unit witnessed good order inflows from the Cement Sector in FY 2022-23 and continues to see a strong order pipeline in FY 2023-24, riding on the current momentum in the infrastructure economy.

Mining & Steel Sector: A spurt in capacity augmentation of steel plants and continued capacity augmentation in coal and iron ore to cater to the growing demand for steel and power have increased the business potential for its equipment range covering Surface Miners, Skid-mounted Coal Crushers, Stacker Reclaimers, Wagon Tipplers, Plough Feeders, etc. The current year witnessed increased order inflow for these equipment from the afore-mentioned sectors and the momentum is expected to continue in the near to medium term.

Port Sector: The port segment in India is expected to experience significant growth due to various Government initiatives aimed at promoting port-led development like the Sagarmala initiative and Maritime India Vision 2030. The business signed a licence agreement with Konecranes Finland to manufacture and supply technologically-advanced cranes for Indian ports and shipyards and received the first order for two shipyard cranes at Cochin Shipyard Limited in the current year. The business expects this traction to continue in the next financial year for providing the most advanced crane solutions to other Indian ports and shipyards.

Major Achievements

Orders won:

With increased demand and growth in the industrial sectors domestically, here are a few highlights and prestigious orders received: ? Mega order from the Arcelor Mittal / Nippon Steel (AMNS) for their expansion at Hazira, Gujarat covering 2 Blast Furnaces and a Steel Melting Plant. An order was also received for a Mineral Beneficiation Plant at Sagasahi, Odisha ? Aluminium Smelter at BALCO Korba, Chhattisgarh ? Phosphoric Acid Plant (PAP) and Di-ammonium Phosphate (DAP) Plant for HZL Chanderia, Rajasthan

? Cold Rolling Mill Plant at Hindalco Lapanga and Hirakud, Odisha ? Alumina Refinery at Utkal, Rayagada, Odisha ? First Export order for 1100 TPH Aggregate Crushing Plant from JSW Fujairah, UAE

? Orders for a new product, L&T Sizers, from external agencies for Coal India projects ? Largest order in crushing segment from Ultratech Cement for their prestigious sprint projects in Kotputli, Rajasthan, Kukurdi, Chhattisgarh and Maihar, Madhya Pradesh ? First order for Hybrid Wagon Tippler (manufactured for the first time in India) from Jindal Stainless Limited

Marquee projects commissioned or at an advanced stage of completion:

? Mansourah Massourah Gold Project in the Kingdom of Saudi Arabia ? Freight Handling Package for the Etihad Rail in UAE ? Steel Melt Shop in JSW Dolvi – 2nd Stream Commissioned ? Plant Upgradation for Birla Copper Phase 1 ? Rolled out the 12 Largest Capacity Torpedo Ladle Cars for JSW (380 T molten metal capacity) ? The countrys Highest Capacity Stacker-cum-Reclaimer (11,000 TPH) commissioned at JSW Jaigarh Project (Maharashtra)

? Full Span Launching equipment (4 sets – Straddle Carriers, Full Span Launching Girders, Girder Transporter) successfully commissioned and operational in MAHSR project in Gujarat

Significant Initiatives

? Concept of Plug & Play established in Stacker Reclaimer Machines – Hydraulic works and piping works done at Kancheepuram to ensure seamless assembly at the project site in Egypt ? Prestigious Quality Certification (as per European Quality Standards EN1090-1) received by Engineering Works (EWL), Kancheepuram, to serve as pre-requisite for CE (Conformit? Europ?enne) marking on products ? Introduced Smart Health Station (IoMT-based Health Station) to enhance the health monitoring of employees, including workmen, through various data analytics


Riding on high demand and improved margins, all major industry players are planning for capacity expansions. Economic revival has improved the demand sentiment and could possibly lead to a flurry of investments in the medium term. Tata Steel has plans to expand its capacity in newly acquired Neelachal Ispats Angul facility and Kalinganagar plant. AMNS group is planning for capacity expansion at its Hazira facility as well as a new greenfield plant in Odisha. Similarly, JSW capacity augmentation is planned for all of its existing plants at Bellary, Dolvi and Jharsuguda along with plans for a greenfield plant at Paradip.

The Hindalco and Vedanta Groups are fully geared to set up new finishing lines in the non-ferrous sector as part of their expansion plans.

The Middle East market is emerging as a hub for the energy-sensitive minerals and metals sector, coupled with investment-friendly policies and financing options. With many of the proposed projects reaching advanced stages of feasibility study and board clearances, a spate of new project implementation processes is likely to be rolled out, offering many opportunities for the business.

The outlook remains positive for the Product business, with the user industry poised for growth, driven by a good demand outlook. The Governments focus on infrastructure development and housing construction drives the growth of the industry. Additionally, the Governments emphasis on the ‘Make in India initiative, which aims to promote domestic manufacturing, will also support growth.


The Energy Projects segment comprises:

(a) Hydrocarbon Business (b) Power Business (c) Green Energy Business

Financial performance of the segment

The Energy segment achieved order inflows of ? 30,750 crore in FY 2022-23, registering a decline of 4.7% over the previous year, on subdued ordering activity in the thermal power business. The share of international orders declined to 61% from 76% in FY 2021-22, mainly due to the receipt of multiple domestic orders in the Hydrocarbon business.

The Energy segments revenue at ? 24,956 crore for the year grew by 5.2% y-o-y, due to a pick-up in execution momentum, mainly in the Hydrocarbon business. The Power business registered a decline due to the tapering of the Order

Book. The share of international revenue in FY 2022-23 was higher at 39% of the total revenue of the segment as compared to 30% in the previous year, on the execution of large international projects in the Hydrocarbon business.

The segments operating margin increased to 9.1% from 7.8%, mainly due to cost savings and a change of job mix under execution.

Funds employed by the segment as at March 31, 2023 at

? 4,299 crore, declined by 3.3% vis-?-vis March 31, 2022, mainly due to a decrease in contract assets in some large value projects and receipt of customer advances in the Hydrocarbon business. The Power business though was impacted due to delays in the collection of retention money from clients and build-up in contract assets due to the non-achievement of billing milestones.

Hydrocarbon Business


The Hydrocarbon business provides integrated ‘design and build turnkey solutions for the hydrocarbon industry, globally. The business executes projects for oil & gas extraction and processing, petroleum refining, chemicals & petrochemicals, fertilisers, cross-country pipelines and terminals. Leveraging its expertise in hydrocarbon projects, verticals like asset management and offshore wind have recently been launched to tap the relevant opportunities in these emerging areas.

The business has integrated capabilities across the value chain, supported by in-house front-end design and detailed engineering, project management, procurement, modular fabrication facilities, Onshore and Offshore construction, installation and commissioning. Major fabrication facilities are located in India and the Middle East. In India, the Engineering, Procurement & Project Management Centres are located at Mumbai, Vadodara and Chennai, and Modular Fabrication facilities are at Hazira (near Surat) and Kattupalli (near Chennai). The overseas presence of the business is predominantly in the Middle East, i.e., in the UAE, KSA, Kuwait and Algeria. The Project Management Office with a training facility has been established in Al Khobar, KSA.

The business also has a state-of-the-art Modular Fabrication facility at Sohar in Oman, a piping shop at Jubail in KSA and a newly built Heavy Wall Pressure Vessel Manufacturing shop at Jubail Industrial Zone in KSA.

The business caters to clients across the hydrocarbon value chain through the following business verticals:


Lumpsum Turnkey EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) solutions are offered to the global offshore Oil & Gas industry. The product offering encompasses wellhead platforms, process platforms, process modules, subsea pipelines and systems, brownfield developments, deep-water subsea manifolds and structures, living-quarters platforms, transportation and installation services, and decommissioning projects.

The Offshore vertical has comprehensive in-house engineering capabilities offering ‘Fit for Purpose engineering solutions, covering the complete project life cycle, from concept to commissioning. As a one-stop solution EPCIC player, it also has in-house fabrication facilities which focus on zero-punch list dispatch to the site. Marine assets comprise a self-propelled heavy-lift-cum-pipe-lay vessel – LTS 3000 – held through a joint venture, and a wholly-owned pipe-lay barge – LTB 300 – that helps expedite offshore installations, ensuring on-time completion of projects.


This business vertical provides EPCC (Engineering, Procurement, Construction, Commissioning) solutions for a wide range of onshore hydrocarbon projects covering Oil & Gas processing, petroleum refining, petrochemicals, fertilisers (ammonia and urea complexes), thermal systems such as cracking furnaces, cryogenic storage tanks and LNG regasification terminals, cross-country pipelines and terminals as well as coal / pet-coke gasification, coal-to-chemicals, and crude-to-chemicals projects. The business has a track record of concurrent execution of multiple mega projects successfully, both in domestic and international markets, with diverse technology process licensors. The Design Engineering Centre for the Onshore vertical offers the complete spectrum of FEED (Front End Engineering Design), process and detailed engineering.

In FY 2022-23, the Company has acquired the Joint Venture partners stake in L&T-Chiyoda Limited and it has been renamed ‘L&T Energy Hydrocarbon Engineering Limited. The business will continue to provide engineering and related services to the hydrocarbon industry in the domestic and international markets.

Construction Services

This business vertical renders turnkey construction services for refineries, petrochemical, fertiliser projects, gas-gathering stations, cross-country oil & gas pipelines and terminals including LNG and oil storage tanks and underground cavern LPG storage systems. Its major capabilities include heavy-lift equipment erection competency, application of advanced welding technologies with high levels of automation, management of workforce and material in large volumes at construction sites and Quality / QHSE systems conforming to international practices. The business has also invested in strategic construction equipment, viz., a range of pipeline-spread equipment, automatic welding machines and other plant and machinery for mechanical construction works.

Modular Fabrication

This vertical specialises in the modular fabrication and the supply of offshore and onshore structures and process modules, including free-standing static equipment for Oil & Gas fields, refineries, petrochemical plants and fertiliser plants. The vertical has the capability to undertake significant modularisation of onshore process plants, which is the new emerging trend.

World-class modular fabrication facilities are strategically located at Hazira (Indias West coast), Kattupalli (Indias East coast), Sohar (Oman) and Jubail (KSA). The combined annual capacity for fabrication is estimated at about 60 million manhours or 200,000 MT (depending on the product mix).

The Piping and Pressure Vessel Manufacturing Shops in KSA primarily cater to the local market and for developing skills to support the countrys localisation programme.

The business is equipped to supply products like wind farm foundations and other modules for offshore wind-farm projects and e-houses. An all-weather waterfront facility provides easy access to clients across the globe and has load-out jetties suitable for the dispatch of large and heavy modules via ocean-going vessels and barges.

Advanced Value Engineering & Technology Services (AdVENT)

Leveraging the expertise in high-end engineering and execution of large-scale technologically complex EPC projects over several decades and collaborating with well-organised R&D centres and renowned institutions, the AdVENT vertical delivers customer-centric solutions for various elements of the value chain of the hydrocarbon industry.

AdVENTs technical capabilities and agility enables it to offer tailor-made value engineering solutions such as product modular solutions, supporting customers in re-purposing studies of existing assets and adoption of the energy transition.

AdVENT also focuses on technology-backed chemical industries which are now ramping up investments in the chemicals sector, thereby reducing dependence on imports. These chemicals are the building blocks of high-value industrial end products.

Asset Management

The Asset Management business delivers integrated digitally enabled value-added services to the Oil & Gas industry.

The Asset Management solutions extend the organisations design, engineering, construction and commissioning capabilities to cover operations, maintenance, performance enhancement and health assessment of critical assets. This business vertical complements EPC project offerings for mutually beneficial engagement with clients over the entire lifecycle of assets.

Offshore Wind

The newly-formed Offshore Wind business offers EPCI (Engineering, Procurement, Construction and Installation) solutions for the Offshore Wind Energy segment, which is poised for faster growth across all the major geographies. The business leverages capabilities built over the last three decades in the Oil & Gas offshore segment and offers EPC solutions for Offshore HVAC and HVDC Substations as well as fixed and floating foundations. The business has forged a partnership with Electrical Technology Company for joint ‘go to market solutions and has also signed an MoU for collaboration with a company leading in floating technology.

Business Environment

The current ongoing geopolitical tensions are expected to slow down the journey of energy transition and also ensure that all sources of energy remain relevant for the current decade.

While the general outlook remains positive, the business environment remains a bit challenging, with elevated commodity prices, supply chain constraints for procurement from Europe, logistic constraints in domestic markets due to increased scale and complexity of projects, limited availability of skilled labour force in the markets and finally stiffer timelines as well as stringent contractual terms and conditions. The business is witnessing competition from European, Korean and new emerging Chinese players in the GCC space.

However, the business has, over the years, developed expertise and put in place several mitigation measures including implementation of technological solutions and modular solutions wherever feasible, focusing on productivity improvement and reducing workforce dependence to effectively deal with these headwinds.

Finally, the business has once again demonstrated resilience with robust order inflows and recorded its highest ever order backlog in FY 2022-23.

Major Achievements

Orders won:

? Multiple offshore packages from a prestigious client in the Middle East for EPCI ? Indias first contract for decommissioning of offshore facilities from British Gas Exploration and Production India Limited (BGEPL, part of Shell Plc Group of Companies) at the Tapti field, off Indias West Coast ? An order from Oil & Natural Gas Corporation (ONGC) for balance works of Pipeline Replacement Project (PRP-VI) and associated subsea works across Indias West Coast offshore fields ? Multiple contracts from Indian Oil Corporation for setting up a Residue Hydrocracker Unit and Reactor-Regenerator System Package (P-25) Project on EPCC basis ? EPC contract for setting up a Hydrogen Generation Unit (HGU) from Matheson Tri - Gas Inc., for Numaligarh Refinery Expansion Project (NREP) ? 5-year O&M contract from Vedanta Limited, Cairn Oil & Gas division for Integrated O&M of Upstream Oil & Gas Processing Facility at Raageshwari Gas Terminal and associated Gas Well Pads and South Satellite Fields, located in Rajasthan, India ? Engineering, Procurement and Construction of a Technical Ammonium Nitrate plant and Weak Nitric Acid plant from Chambal Fertilisers and Chemicals Limited ? Contract from a prestigious client in KSA for rerouting of Midyan-Duba Gas and Condensate pipelines ? Modules for Green Hydrogen Project for an international client

Projects completed:

? Heera Re-development Phase III for ONGC

? Commissioning of New Water Injection South (NWIS-R) project, the first-of-its-kind Enhanced Oil Recovery Project in India for ONGC

? Commissioning of Ammonia and Urea plants along with production of Urea prills for Hindustan Urvarak and Rasayan (HURL) at its Sindri and Barauni complexes

? Crude / Vacuum Distillation Unit of HPCL Visakhapatnam ? Monoethylene Glycol (MEG) and Offsites & Utilities Projects for Indian Oil Corporations, Paradip Refinery ? Completion of dispatches of the modules for Singapore Gasification Project of Linde

Significant Initiatives

As part of Lakshya 2026, the business has embarked on various strategic initiatives to boost cost-competitiveness and to achieve its targeted growth aspirations.

Strategic actions include building partnerships, developing markets for adjacencies in offerings, nurturing new businesses like asset management, offshore wind farms and modular solutions, driving localisation efforts in key geographies where a long-term presence could be established and adopting digitally-enabled operational excellence.

The business is focusing on improving productivity through collaboration and seamless digital integration across project ecosystems. Some of the key initiatives include:

? Implementation of Drishti, an AI-driven knowledge portal which leverages the collective expertise and facilitates accelerated decision-making ? Implementation of Epsilon for integration of various transaction systems and creation of Project Virtual Twins with Multi-D visualisation ? Construction-driven EPC using Advanced Work Packaging Methodology

? Predictive Analytics for single-point visibility of various project interfaces and proactive actions towards reducing rework and eliminating waste at construction sites ? Robotic Process Automation (RPA) bots for automating mundane tasks across functions


The ongoing geopolitical instability continues to affect global trade, economic growth and technological innovations. A slower pace of energy transition and high oil prices will continue to support investments in fossil fuels, which is evident from continued investments by Oil & Gas majors, especially in the GCC and the developing world. Oil & Gas as an energy form, will continue to remain a core for an energy-hungry economy like India.

The Government of India aims to double the net area being explored for Oil & Gas to 500,000 sq. km. by 2025. Favourable Government policies revolving around concession for early monetisation, marketing and pricing freedom as well as the shift of focus from Revenue to Production maximisation are favouring the investments in the Exploration and Production industry. ONGC has drawn up its Strategy 2040 to increase its production two-fold and has announced capital projects worth USD 7 billion over the next 3 years.

Indias crude oil refining capacity is planned to be increased to 450 MMTPA from the current 250 MMTPA by 2030 and the demand for Petrochemicals is expected to grow nearly threefold to 80 MMTPA by 2040 from the current level of

31 MMTPA. The Government of India has set a target of gasifying 100 million tonnes of coal into value-added products by 2030. An investment of ? 35,000 crore is planned by Indian PSUs for setting up surface coal gasification projects. Indias natural gas demand is projected to reach 133 BCM in 2030 from 64 BCM in 2022. India is also considering the creation of strategic reserves of LNG to protect against potential supply shortages and numerous LNG receiving terminals are planned to be set up in the near future. The Government is also set to expand its natural gas grid to 34,500 km by adding another 17,000 km of pipelines with an investment potential of

? 70,000 crore over the next couple of years.

Further, the Government of India intends to maximise the production of fertilisers mainly based on indigenous feedstocks and also decrease import dependency on speciality chemicals like ammonium nitrate and nitric acid to achieve self-sufficiency. On the back of the anticipated diversification of a global supply chain, many international chemical companies are looking to set up niche chemical manufacturing units in India.

The lack of capital spending during the COVID period and the subsequent geopolitical developments are likely to accelerate the launch of new projects across the Oil & Gas value spectrum. KSA has developed its Vision 2030 document for production enhancement and is targeting 12-13 MMB / D of oil production and 2 BCFE / D of Gas Production. UAE is also planning to boost its Oil & Gas production capacity to 5 MMB / D, while Kuwait is envisaging spending on oil production, exploration and other projects by 2025. The business is also well-positioned to participate in upcoming mega offshore Oil & Gas projects in Qatar. With the recovery in Oil & Gas prices, the Middle East and North Africa (MENA) region is planning for investments of around USD 450 billion in Oil & Gas as well as petrochemicals.

There is an increased thrust on localisation in KSA, UAE and Qatar and the business has introduced significant initiatives to address localisation requirements in KSA, which is the biggest market outside India, for the hydrocarbon business presently. The business has formed a joint venture with a KSA-based company for jointly targeting onshore business opportunities in KSA.

Offshore Wind, now widely recognised as a reliable source of energy, is gaining momentum. The business is committed to playing a significant role in powering the winds of change and towards this, our newly formed Offshore Wind business has secured pre-qualification and is participating in large tenders for key developers across the globe. Indian refineries and petrochemical units have started outsourcing their utilities Operations and Maintenance (O&M) on an activities-and-workforce-supply basis. They are exploring combining O&M of multiple units / activities, which is providing opportunities for integrated Asset Management services.

The business remains optimistic about the outlook for Hydrocarbon and the various business adjacencies in the medium term.

Financial performance of the business

The Hydrocarbon business achieved order inflows of

? 29,080 crore in FY 2022-23, registering a decline of 5.9% over the previous year due to deferment of some targeted prospects and a base effect. The share of international orders also reduced from 79% to 64% in March 2023, since the previous year included two large-value orders from Saudi Arabia.

The Hydrocarbon business recorded revenue of ? 20,868 crore for the year, registering a growth of 8.3% y-o-y, due to a pick-up in execution momentum, mainly in the Offshore vertical of the business. The share of international revenue in FY 2022-23 was higher at 45% of the total revenue as compared to 36% in the previous year, with a higher opening international Order Book.

The operating margin of the business increased to 9.9% from 8.7%, mainly due to cost savings arising out of improved execution in a few international and domestic jobs.

Power Business


L&T has established itself as one of the leading EPC players in offering turnkey solutions for both Coal and Gas-based power plants, encompassing every aspect of design, engineering, manufacture, construction and project management. In addition to undertaking turnkey projects, it also offers equipment and other services for power plants.

The business has developed its own capabilities in executing large and complex power projects, which include engineering, state-of-the-art manufacturing facilities, a competent manpower pool and decades of experience earned in executing large and complex projects within and outside India. The business has a proven track record of delivering complete power plant solutions with scale and sophistication to meet Indias growing energy needs.

The business also executes combined cycle and cogeneration power projects, based on LNG, Natural Gas and / or liquid fuel, on a turnkey basis. It has an excellent track record in implementing projects for utilities, refineries and Independent Power Producers (IPPs) in India and overseas. With extensive experience of over three decades in executing EPC contracts for Combined Cycle Power Plants (CCPP) and Cogen plants, the business has numerous references, deploying gas turbines sourced from major leading Original Equipment Manufacturers with Gas Turbine (GT) sizes ranging from 30 MW up to the most advanced GTs to date.

The business has built on its core competencies and capabilities and has emerged as a major player in emission control technologies such as Flue-gas desulphurisation (FGD) in the Indian thermal power plant industry. It now has a sizeable presence in the FGD business.

The business has an integrated manufacturing facility at Hazira, Gujarat. It is one of the worlds most advanced facilities having a manufacturing capacity of 5,000 MW per annum.

The facility manufactures ultra-supercritical / supercritical boilers, turbines and generators, pulverisers, axial fans and air preheaters, components of FGD and electrostatic precipitators. The business has project management offices at Vadodara, Faridabad, Dhaka and various other project sites.

The business has the following Joint Venture (JV) companies within its fold:

L&T-MHI Power Boilers Private Limited, a JV with Mitsubishi Heavy Industries (MHI), Japan – the worlds leading power equipment maker – for the engineering, designing, manufacturing, erecting and commissioning of ultra-supercritical / supercritical boilers up to a single unit of 1,000 MW.

L&T-MHI Power Turbine Generators Private Limited, a JV with Mitsubishi Heavy Industries (MHI), Japan and Mitsubishi Electric Corp. (MELCO), for the manufacture of Steam Turbine Generator (STG) equipment of capacity ranging from 660 MW to 1,000 MW. The Company is engaged in the engineering, design, manufacture, erection and commissioning of ultra-supercritical / supercritical turbines and generators.

L&T Howden Private Limited, a JV with Howden Holdings B.Rs.. L&T Howden, is in the business of regenerative air preheaters and variable pitch axial fans (equipment, after-market spares and services) for power plants.

L&T-Sargent & Lundy Private Limited, a JV with Sargent & Lundy LLC, USA, is engaged in the business of providing design, engineering and project management services for power projects.

Business Environment

The thermal power sector is witnessing a revival after the pandemic-induced hiatus of around three years, amidst the continuing transition of Indias power generation mix. With increasing economic activity, industrial expansion and power demand growing to record levels, many utilities are feeling the need to fast-track the brownfield expansion of their existing coal-based thermal power projects.

In FY 2022-23, EPC coal-based power projects having a cumulative capacity of around 8.3 GW were in various phases of tendering. This establishes that for sustained energy security, thermal power generation is going to co-exist with renewable energy for a longer period than envisaged – till India achieves its Net Zero Target by 2070.

Tenders for FGD Units were delayed and retendered due to an increase in input costs, resulting in budget constraints for power producers and an extension in deadlines for compliance with SO2 emission norms by the Ministry of Environment, Forest and Climate Change (MoEFCC).

The gas-based power generation sector in India remains muted due to higher fuel costs for the power sector, despite an improvement in the supply and distribution network for natural gas. While approximately 24 GW of installed / commissioned gas-based power plants in India are idling due to high costs of generation, the Administered Pricing Mechanism (APM) gas prices have also been rising during the past one year.

Though there are challenges in the international markets, such as a greater focus on renewables, geopolitical dynamics and financing of thermal power projects, a few select markets still offer specific opportunities based on the cleaner operation of gas-based thermal plants, added with new technologies like carbon capture, etc. The business continues to pursue certain targeted projects with reputed clients and OEMs.

Major Achievements

Some of the major achievements by the business during the year include: ? FGD order received from a Central Utility for a 3 x 660 MW Power project in Uttar Pradesh ? Boiler Hydro Test successfully concluded for Unit-1 of a 2 x 660 MW Central Utility Project in Uttar Pradesh

? Completion of Facilities for Cooling Tower Package of both the units of a 2 x 800 MW Central Utility Project in Odisha

Significant Initiatives

In line with the energy transition and sustainability requirements, the business formed a Technology Task Force (TTF) to identify, incubate and implement new technology opportunities to make the organisation resilient. The TTF has finalised a few focus areas like Coal Gasification and Integrated Gasification Combine Cycle (IGCC), Small Modular Reactors, Carbon Capture Technology, Biofuel / Ammonia / Methanol firing in Supercritical Power Boilers and Flexibilisation in Coal-based power plants. The business is also expanding into adjacencies like providing Life Cycle solutions (spares and services) to customers, which will cater to other OEM machines as well.

To improve profitability and on-time execution of Projects, the business introduced the Operational Excellence initiative in the mid of FY 2022-23. To improve productivity and reduce profit leakages, various digital and analytical levers such as IoT-isation, Virtual Reality, Artificial Intelligence and Machine Learning have been imbibed into the day-to-day operations. The focus to achieve QEHS (Quality, Environment, Health & Safety) excellence remains of prime importance. It has also accelerated the usage of digital levers to increase the efficiency and productivity of operations.

To expand its international footprint, the business is focusing on business development activities in select international geographies, specifically GCC and select countries in Southeast Asia. It has taken steps to strengthen its presence in such geographies to capitalise on the opportunities available in this sector.


In the wake of the expanding economy, growing population, rising urbanisation, and increased industrialisation, India is seeing a surging rise in energy demand and a consistent increase in the Plant Load Factor (PLF) of thermal power plants compared to previous years. In order to maintain the countrys energy security amid rising demand, the thermal power sector has started gaining momentum after a temporary downturn. As per estimates from the Ministry of Power, Indias power demand is set to double by 2030.

Considering the CEAs projections of 274 GW thermal power capacity by FY 2031-32 and in view of the retirals of old, inefficient, and polluting power plants, the addition of new thermal power capacity will continue in the near term, positively impacting the business prospects. The business is envisaging more than 20 GW of thermal tenders in the next few years.

It is estimated that the total installed capacity of power plants for which FGDs are to be installed is around 167 GW, involving 440 FGD units. About 96 GW of FGDs have been ordered to date. Tendering of balance units is expected to gain momentum in FY 2023-24 if the revised deadlines stipulated by MoEFCC are to be adhered to.

The business is also focusing on international markets for opportunities. The inherent advantages of gas-based power projects like fuel flexibility and fast ramp-up and ramp-down capabilities, make it most suitable for grid balancing along with renewable energy projects.

L&T-MHI Power Boilers JV and L&T-MHI Power Turbine Generators JV are also looking forward to leveraging upcoming spares and service opportunities in the domestic market and will continue to explore business opportunities in the international market for export orders.

Financial performance of the business

The Power business recorded an order inflow of ? 1,670 crore for the year ending March 31, 2023, registering a growth of 22.8% as compared to the previous year with the receipt of an FGD order. Ordering activity remained subdued during the year largely due to the deferral of coal-based power project opportunities and the delay in tendering of FGD orders.

The segments revenue at ? 4,090 crore declined 8.1% on a y-o-y basis, with tapering of execution of jobs in the portfolio and a diminishing Order Book.

The operating margin improved to 6.5% from 3.9%, mainly due to the cost savings in a couple of international gas-based projects nearing completion.

Green Manufacturing & Development


L&T has decades of experience in providing solutions to the energy industry, offering critical Equipment Manufacturing and Engineering, Procurement and Construction (EPC) services for reputed Indian and International clients in Oil and Gas, Thermal Power, Renewable Energy (Solar and Hydel Power) and Nuclear Power. The Company has, over the years, helped India and the world meet their past and present energy needs.

Having been at the forefront of providing innovative and sustainable engineering solutions, L&T is aligned with the global movement towards the use of renewable energy and the adoption of clean technologies, which will help meet Indias and the worlds future energy needs. L&T is positioned to add value in the fast-evolving Green Energy space and emerge as an industry major.

As part of its ESG commitments, L&T has pledged to achieve Water Neutrality by 2035 and Carbon Neutrality by 2040. L&Ts Green Energy business with its focus on Green Hydrogen and its derivatives, will be an integral part of the Companys Clean Fuel Adoption Policy. The Companys Green Energy Vision is centred on the following three business segments encompassing the Green Energy Value Chain:

Green Manufacturing: The Company intends to leverage its Hi-Tech Manufacturing capabilities and facilities to venture into the Electrolyser and Stationary Battery (Advanced Chemistry Cell) manufacturing businesses to drive down costs and cater to both domestic and global markets. This is aligned with Indias vision to become a Green Manufacturing Hub.

Green EPC: The Green EPC business of the Company endeavours to be a preferred partner of choice for clients in India and in the Middle East, offering integrated cost-competitive solutions for the low-carbon Ammonia / Hydrogen / Methanol / Carbon capture projects to achieve their energy transition journey. Beginning with concept and design, the business will also deliver comprehensive project management expertise to de-risk future execution of the project.

L&T Green EPC has a highly skilled engineering workforce well-versed in the latest technologies and processes involved in Green Hydrogen production. In addition, L&T has a strong supply chain network and partnerships with leading technology providers, which enables the Company to source the necessary equipment and materials for Green Hydrogen projects at competitive prices. This, combined with the Companys project management and construction expertise, will enable the delivery of Green Hydrogen projects on time and within the budget.

Green Development: The Green Energy Development vertical will focus on Green Ammonia, Green Hydrogen and Green Methanol projects, which have the potential to provide a clean and sustainable source of feedstock and fuel to the hard-to-decarbonise / hard-to-abate industrial sectors like steel, petrochemicals, refining, etc.

The business has distinct but complementary capabilities to the EPC vertical, thereby enabling it to design and develop plants on a Build, Own and Operate (BOO) basis. The business will also leverage the Companys strategically placed locations having proximity to ports, for the storage, handling, transfer and export of Green Hydrogen and Green Ammonia to international clients and position itself as a leading subcontinent-based exporter.

The business will forge key partnerships and joint ventures with reputed national and international players across the Green Energy value chain and offer customers a single-point integrated solution that meets their market expectations.

Business Environment

The Government of India has launched the National Green Hydrogen Mission that seeks to incentivise the commercial production of Green Hydrogen and make India a net exporter of energy. The mission has laid out a target to develop a Green Hydrogen production capacity of at least 5 MMT (million metric tonnes) per annum by 2030 with an initial financial outlay of ? 19,744 crore. This will allow the decarbonisation of refineries, city gas-grids, fertiliser, petrochemical, steel and other hard-to-decarbonise sectors, reduce dependence on imported fossil fuels and feedstock, develop indigenous manufacturing capabilities, create employment opportunities and design new technologies such as efficient fuel cells.

States like Uttar Pradesh, Rajasthan, Odisha and Gujarat have announced policies in alignment with the Green Hydrogen Policy of the Union Government. Policy implementation and standard setting for Green Hydrogen are at an advanced stage nationally as well as globally.

The Union Budget 2022-23 has allocated ? 35,000 crore for capital investment towards energy transition, net zero objective and energy security. The Government of India has also developed a framework for Sovereign Green Bonds, in which it defines the ‘green sector and the process to ensure that investments will be directed to it.

The Energy Conservation (Amendment) Act, 2022, was enacted during the year, setting in place mandatory provisions for the use of clean energy.

Major Achievements

The business has entered into an Electrolyser Manufacturing Binding Agreement with McPhy Energy, a France-based leading electrolyser technology and manufacturing company, for a long-term partnership to explore the opportunities unfolding in the emerging Green Hydrogen market. Under this partnership, McPhy will grant an exclusive license of its pressurised alkaline electrolyser technology to L&T for the manufacturing of electrolysers, including future product upgrades. The business plans to set up a Gigawatt-scale manufacturing facility for electrolysers based on McPhy technology in India to serve the domestic requirements as well as cater to other select geographies.

The business has recently commissioned the first Green Hydrogen plant for captive consumption for Hydrogen Blending at the A. M. Naik Heavy Engineering Complex at Hazira, Gujarat, which includes a Solar Roof-top plant, Green Hydrogen Generation plant with a state-of-the-art energy management and data analytics system, Oxygen and Hydrogen storage and handling systems and Battery Energy storage systems. The plant has a production capacity of 45 kg high purity (99.99%) of Green Hydrogen daily using an electrolyser capacity of 380 kW.

Significant Initiatives

Technology innovation plays a central role in the growth of an emerging industry such as green energy, which includes green molecules, energy storage and green energy application technologies. L&T envisages a state-of-the-art green technology innovation platform that will enable closer collaboration with its partners, components suppliers and leading academic institutions. The conceptualisation of new designs, architecture, test methods and innovation in materials processing is critical for the sector to improve energy efficiency, enhance reliability and reduce equipment cost.

Partnerships with leading Indian and global academic institutions are critical to support the development of the technology leadership of the Indian industry. As a first step, a collaboration with the Indian Institute of Technology – Bombay for Green Hydrogen value chain was signed in the Q1 FY 2022-23.


The Government of Indias commitments at COP26 to target Net Zero by 2070 requires a shift towards cleaner sources of energy. Specific targets such as setting up of 500 GW non-fossil fuel energy capacity, 45% reduction of carbon intensity and 50% energy through renewables by 2030, etc., continue to provide a thrust to the Green Energy businesses. Further, India can also position itself to become a global Green Hydrogen Hub.

The three business segments offer a truly integrated solution from EPC, OEM to BOO, which helps in improving competitiveness, aided by a planned presence across the entire value chain.



The Hi-Tech Manufacturing segment comprises:

(a) Heavy Engineering Business

(b) Defence Engineering Business

Financial performance of the segment

The Hi-Tech Manufacturing segment achieved order inflows of ? 15,762 crore during FY 2022-23, registering a growth of 39.5% over the previous year, mainly on account of higher domestic orders in the Defence business. The share of international orders increased to 17% from 15% in FY 2021-22.

The Hi-Tech Manufacturing segment achieved revenue of

? 7,161 crore for the year, registering a growth of 14.3% y-o-y, due to a pick-up in execution momentum mainly in the Heavy Engineering business. The Defence Engineering business revenue registered marginal growth over the previous year as the existing jobs in the portfolio are in their early stages of execution. The share of international revenue in FY 2022-23 was 22% of the total revenue of the segment as compared to 24% in the previous year.

The segments operating margin declined to 18.0% from 19.6%, mainly due to execution delays revolving around supply chain issues and a change of job mix in the portfolio.

Funds employed by the segment as at March 31, 2023, at

? 2,651 crore declined over the corresponding figure on March 31, 2022, by 1.8%, mainly due to higher customer advances on receipt of large orders in the Defence business. The Heavy Engineering business was however impacted due to client fund constraints and logistics challenges, resulting in a build-up in contract assets on non-achievement of billing milestones.

Heavy Engineering Business


L&Ts Heavy Engineering business is a global leader in the manufacturing of Engineered-to-Order equipment for Refinery, Petrochemicals, Fertiliser, Oil & Gas and Nuclear Power plants.

The A. M. Naik Heavy Engineering complex at Hazira is a globally-benchmarked, state-of-the-art, fully-integrated and digitally-enabled manufacturing and fabrication complex. The acclaimed in-house engineering capability has been built around a highly talented team adopting the latest technology and committed to a safe and sustainable work culture. The business is globally recognised for its impeccable track record of timely and quality deliveries, while creating new international benchmarks. The business has implemented the Industry 4.0 methodology in its manufacturing operations.

The business is organised into the following Product Business Units (PBUs):

The Reactor & Pressure Vessels (RPV) PBU specialises in the fabrication of Hydro-Processing Reactors, Tubular Reactors, Gasifiers, Ammonia Converters, Urea Reactors, Coke Drums, Fluid Catalytic Cracking (FCC) Reactor – Regenerator system, Oxidation Reactor, Titanium Cladded Equipment, LNG / Gas Processing Pressure Vessels and Heavy Columns.

The Heat Transfer Equipment (HTE) PBU specialises in Acrylic Acid Reactor System, Ammonia & Urea Plant Exchangers, High-Pressure Heat Exchangers, Methanol Converters, Propylene (PO) Reactors, Vinyl Acetate Monomer (VAM) Reactors and Fired-tube Waste Heat Boilers.

The Process Plant Internals (PPI) PBU specialises in proprietary process plant internals for Reactors and Ammonia Converter baskets. A large variety of critical internals for advanced refining processes are manufactured using materials like Stainless Steel, Duplex / Super Duplex Stainless Steel, Inconel, Monel, Hastelloy, Titanium, etc.

The Modification, Revamp and Upgrade (MRU) PBU offers value-added end-to-end solutions for FCC revamps, Crude Distillation Unit / Vacuum Distillation Unit revamps, multi-shutdown facility revamps, Urea Reactor life extension, Coke Drum repairs, Heat Exchanger revamp, Urea energy-saving projects and emergency repairs for the process plant industry.

The Nuclear PBU specialises in key equipment for steam supply systems for nuclear power plants. It manufactures key components of the nuclear island like Steam Generators, End-shields, Pressurisers, Safety Heat Exchangers, Reactor Header Assemblies, Calandria, End Fittings, etc. It supplies critical components for Fusion Reactors (ITER), Fast Breeder Reactors, Casks/Canisters for handling spent fuel and critical equipment for strategic programmes.

The Special Fabrication Unit (SFU) fabricates critical Titanium Piping Spools, complex internals for Gasification Plants, Loop Reactors and Primary Quench Exchangers (PQE) for the petrochemicals sector.

The Forge Shop business also has one of the worlds largest Forge shops. L&T Special Steels and Heavy Forgings Private Limited (LTSSHF), a joint venture with Nuclear Power Corporation of India Limited. LTSSHF meets the critical custom-made heavy forging requirements of sectors like Nuclear and Hydrocarbon.

Business Environment

The FY 2022-23 began with the Russia-Ukraine war and its after-effects on supply chains and logistics, cancellation of orders and high commodity prices. The business continued to thrive despite the above challenges.

The business does face foreign competition in domestic projects. To have a level playing field, the business is proactively working through industry associations to influence concerned ministries to mitigate the risks associated with the inconsistencies in the implementation of public procurement under Atmanirbhar Bharat and to ease / simplify certain processes applicable under Quality Control Order (QCO).

The business has observed a surge in demand for Renewable Diesel and Bio Diesel plants (which are more eco-friendly). Enforcement of clean fuel standards – Renewable Energy Directive (RED) II, Renewable Fuel Standard (RFS) and Low Carbon Fuel Standard (LCFS) in developed countries, is providing sustainable growth in demand in this sector. Oil-to-Chemicals provide additional growth momentum in the mid to long term in the petrochemicals sector (especially in Asia) and LNG sector (especially in the USA and the Middle East). Globally, momentum is witnessed in Blue and Green Ammonia projects in the fertiliser sector.

On the domestic front, the Government has approved multiple mega projects in the refinery and petrochemicals sector. Traction is also being seen in large-scale private projects, viz., Oil-to-Chemicals and Solar Photovoltaic (Giga factories).

The Modification, Revamp and Upgrade (MRU) business, identified as a Lakshya 2026 growth initiative, has taken off well, both in India and in the GCC countries. Increasingly, clients are opting for revamps and upgrades and deferring greenfield investment projects. This business has entered into energy efficiency enhancement projects in the domestic fertiliser sector, which will unlock further business potential.

Nuclear power has garnered support in view of climate change and pressure on all nations to achieve ‘Net Zero emission targets. NITI Aayog and the Department of Atomic Energy (DAE) is exploring the possibility of replacing / retiring Thermal Power plants with Small Modular Reactors. Anushakti Vidhyut Nigam Limited (ASHVINI), a JV between NTPC and NPCIL will focus on the fast-track construction of 6 X 700 MWe Pressurised Heavy Water Reactor (PHWRs).

The business is targeting Special Projects like Laser Interferometer Gravitational-Wave Observatory (LIGO) and Medical Isotope Reactor. The good track record in the Fusion Reactor project (ITER) has opened further business opportunities from ITER Organization.

Major Achievements

On the international front, the business has won multiple marquee orders, viz., the Worlds Largest Coke Drum and Breech Lock High-Pressure Heat Exchanger; Heaviest Chromium Molybdenum Vanadium steel (CrMoV) reactors from Pemex, Mexico; 1st breakthrough order for the Blue Ammonia project from Air Products; Worlds Largest Ethylene Oxide (EO) reactor order for BASF, Germany; Worlds Largest Ammonia Converter for OCI Beaumont and KBR; and Renewable Diesel reactors for Shell, Singapore. During the year, the business supplied critical equipment to new markets like Israel and Egypt.

In the domestic sector, the business continued its dominance in Urea Reactors by securing its 12th Urea Reactor order. Vertical Plate Coke Drums and Loop Reactors were breakthrough orders secured during the year, with large business potential.

The MRU business secured the largest domestic order for GSFC Urea Revamp Project which is expected to unlock opportunities for energy efficiency projects in the domestic fertiliser sector.

The Nuclear business is on track to create new benchmarks in the fleet orders of Steam Generators and End-shields. It also successfully secured the ISO 19443 certification (first time by any company in India). The Special Fabrication Unit (SFU) moved up the value chain by delivering complex Air Steam Rings for HRRL, manufacturing Seismic Stoppers for the National High-Speed Rail Corporation Limited (NHSRCL) and Loop Reactors for an IOCL project (all the equipments have been manufactured for the first time in India).

LTSSHF has successfully delivered forgings for Steam Generator and stainless-steel plates for the End-shield for the NPCIL fleet orders. In the Hydrocarbon sector, the Company has received orders for the supply of shells for IOCL and Singha refinery, Singapore.

Significant Initiatives

The business is embarking on an end-to-end digital transformation programme, viz., iRUDRA, which aims at creating a digital thread across the entire business value chain, with one set of unified data. All standalone systems will be seamlessly connected through a Data Lake which will enable strong analytics and provide insights for real-time, critical managerial decisions. Initiatives like Design and Estimation Automation will drastically improve office productivity and the accuracy of design and estimates through analytics. Real-time visibility of project progress and cost control alongside scenario analysis facilitates better project monitoring.

The acceleration of automation initiatives, as below, contributed to significant improvement in productivity:

? Smart Wireless Bot for Non-Destructive Examination (NDE) and Surface Roughness Measurement ? Auto-evaluation of Time-of-Flight Diffraction (TOFD) and Phased Array Ultrasonic Testing (PAUT) in non-destructive testing ? Drone-based Remote Refractory Inspection and Assessment ? Digital Factory Twin Improving competitiveness for products like Renewable Diesel Reactor, HP Screw Plug Heat Exchangers and Heavy Columns and Vessels has been identified as a major initiative to increase market share.

LTSSHF focused on mastering manufacturing technology and achieved one of the lowest (2%) rejection rates for the Nuclear and Hydrocarbon sectors across the globe.


Despite geopolitical uncertainties, the Indian economy is expected to report healthy growth in FY 2023-24. On the domestic front, the business expects launch of new projects in coal gasification, petrochemical industries, and Giga factories for Solar Photovoltaic (PV). The MRU business expects a sustained increased demand and getting a stronger foothold in the GCC region.

In the international segment, it is expected that the uptrend of investment in renewable diesel projects, petrochemical and LNG sectors is likely to continue. The business also expects a similar positive momentum of opportunities in Renewable Fuel / Petrochemical projects in the USA and Southeast Asia, LNG projects in the USA and the Middle East and Fertiliser projects in Australia, the USA and the Middle East.

The Nuclear business is pursuing opportunities in Small Modular Reactor (SMR) technology development and proof of concept initiatives with NPCIL and NTPC. The Governments localisation push for the Kundankulam Nuclear Plant project is expected to generate additional business opportunities. Mega science projects from ITER and the Department of Atomic Energy (DAE) are closely tracked by the business. The foreign technology programme continues to progress at a slower pace on account of a lack of commercial viability. Fleet Order procurement for the strategic sector is also expected in the next 2 to 3 years, and the Nuclear business is well poised to tap this opportunity.

The demand for heavy forgings is largely dependent on the outlook of the Nuclear, Defence, Hydrocarbon, Thermal and Hydropower industry segments. LTSSHF is currently the only certified indigenous producer of large and heavy critical forgings and thick plates.

The business remains positive in its outlook for order prospects. However, in view of the recent geopolitical situation, commodity price escalations have created cost pressures on the contracts under execution. Digital and organisational excellence initiatives are expected to result in improved productivity and higher value creation in the medium to long term.

Financial performance of the business

The Heavy Engineering business recorded an order inflow of

? 3,637 crore for the year ending March 31, 2023, higher by 12.8% as compared to the previous year, mainly due to receipt of orders from the Fertilisers & Petrochemicals business. The share of international orders decreased to 48% from 51% in the previous year.

The Heavy Engineering business revenue of ? 3,658 crore reflected a strong growth over ? 3,039 crore of the previous year, with higher execution of orders in the Refinery sector. The share of revenue from international operations has remained steady at 36% in FY 2022-23.

The operating margin of the business declined from 19.0% to 16.0%, mainly due to time and cost overruns. Execution delays due to supply chain issues, challenges around logistics and additional cost provisions in an international project resulted in a lower margin during the year.

Defence Engineering Business


L&T entered the Defence sector in the mid-80s as a part of the Companys strategic focus on building a strong and self-reliant India by leveraging its precision engineering capabilities. This was well ahead of the opening up of the sector for private industry participation in 2001. During the preceding one and a half decades, L&T has been associated with the Defence Research & Development Organisation (DRDO), while concurrently contributing to the Indian Navys ‘A Builders Navy aspiration, by enabling in-country value addition.

Having built a portfolio of products, systems, platforms and solutions, and correspondingly a basket of technologies, the business provides concept-to-design-to-delivery wide-ranging, solutions across chosen defence segments with a focus on indigenous design and emphasis on creating Indian Intellectual Property (IP). The portfolio includes the development and production of naval (submarines, underwater platforms and warships) and land platforms (armoured systems, howitzers, air defence guns), engineering systems for such platforms, weapon delivery systems with fire control solutions, radar systems & sensors, sub-systems for missile and space launch vehicles and avionic products.

The business is headquartered in Powai, Mumbai and its operations extend across India, and include two R&D centres, three Design & Engineering Centres and dedicated production centres: ? Armoured Systems Complex for manufacturing, integration and testing of armoured and allied platforms and an Underwater Platform Hull Manufacturing facility at L&Ts A. M. Naik Heavy Engineering Complex at Hazira (near Surat) ? Shipyard at Kattupalli (near Chennai) ? Strategic Systems Complex for weapon, sensor and engineering systems at Talegaon (near Pune) ? Precision Manufacturing & Systems Complex for manufacturing aerospace and missile subsystems, Centres of Excellence for Advanced Composites and Additive Manufacturing at Coimbatore ? Strategic Electronics Centre at Bengaluru These Work Centres are complemented by R&D Centres at Powai and Bengaluru, a Design and Engineering Centre for Weapon, Sensors and Engineering Equipment at Powai and Talegaon and Design and Engineering Centres for Submarines and Warships at Powai and Chennai.

The business is structured into two Strategic Business Groups (SBGs):

? Defence & Aerospace ? Defence Shipbuilding

Defence & Aerospace

Since its inception, the Defence and Aerospace (D&A) business has built a portfolio of wide-ranging indigenously designed and developed products, systems, solutions, platforms and technologies. The business has indigenously developed more than 250 defence systems and products and more than 50 of them have been delivered in serial production mode. The business model is uniquely differentiated through its focus on in-house technology and product development, innovation for serial production, mature and equated partnerships with global majors, as well as with the Indian Defence industry, both in the Government and in private segments. Besides the supplies, the business offerings also include providing support during installation, commissioning, field evaluation trials and through-life support, which includes obsolescence management. These initiatives enable the business to maintain its market leadership position in the private sector, which augurs well, given the Government‘s push for higher indigenisation through Atmanirbhar Bharat Abhiyan and the Governments support for exports in the Defence segment. The business also has a joint venture with MBDA, a global leader in missiles and missile systems.

Defence Shipbuilding

The Defence Shipbuilding business offers end-to-end solutions for the design, construction of defence ships and refit services. The business owns and operates a greenfield mega defence shipyard at Kattupalli, near Chennai, located across a sprawling 980-acre complex. The Kattupalli Shipyard is Indias largest shipyard, with the first phase spread, across 150 acres, being operational for more than a decade. The design and construction of the yard is modelled to adopt global best practices, such as modular construction, construction under covered shops, use of a ship-lift with dry and wet berths, etc., These practices enable simultaneous construction of different classes of vessels until near completion on land and subsequently launching them through the ship-lift. It is the only Indian shipyard with Industry 4.0 practices, thereby enhancing construction efficiency, cycle time and consistent build quality.

A dedicated Warship Design Competency Centre in Chennai is equipped with the latest integrated 3D design, analysis and product lifecycle management tools that are interfaced with project management and ERP systems, in line with global best practices.

The Kattupalli Shipyard has been largely engaged in new builds and refits / repairs of defence ships of the Indian Navy and Indian Coast Guard. Since its inception, the yard has built and delivered 85 ships of various types ranging from Fast Patrol Boats to Heavy Lift Vessels. The majority of these ships have been designed in-house in the Warship Design Competency Centre. The business has also delivered Interceptor Boats, Offshore Patrol Vessels (OPVs) for the Coast Guard and high-speed Border Guard Boats for a friendly foreign nation, ahead of schedule. The capability of the business to achieve on-time or ahead of contractual delivery performance in all the contracts for defence vessels is unique in the Indian shipbuilding industry. A significant benchmark was attained by the shipyard in delivering the 2,130 MT class OPV and completing the entire acceptance trials in its maiden sea sortie of the vessel to affirm the design and build quality in record time. The shipyard has undertaken refits and repairs of over 100 defence and commercial vessels for both Indian and foreign customers.

L&Ts participation in the Defence Sector stems from its ethos of being a Builder to the Indian Nation. Various sustainability risk standards for defence also recognise the right of countries to defend themselves and the need to develop and produce defence related products to fulfil security, peacekeeping and humanitarian needs. It may be noted that India is committed to non-proliferation under the "Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Act, 2005". India is also a signatory to the Missile Technology Control Regime (MTCR), a multilateral export control regime, and a party to the Wassenaar Arrangement – a voluntary export control regime that limits the destabilising proliferation of sensitive technologies. Further, India is has voluntarily adopted a ‘No First Use (NFU) Policy (PIB notification dated January 4, 2023) that is enshrined in the commitments of the Cabinet Committee on Securitys (CCS), and Indias application to join the Nuclear Suppliers Group (NSG) in 2016, is also under discussion. The Company recognises the need to act responsibly in carrying out this business, implement internal controls and stay committed to respecting human rights.

While maintaining its position as a leading player in the Indian Defence Sector, the business does not manufacture any explosives or ammunition of any kind, including cluster munitions or antipersonnel landmines or nuclear weapons or components for such munitions. The business also does not customise any delivery systems for such munitions.

Business Environment

With the Government of India initiating substantive policy reforms in the past three years and allocating higher budgets for indigenous acquisition, the macro picture has improved for the Defence business. In FY 2022-23 Acceptance of Necessity (AoNs) for capital acquisition worth ~ ? 2.7 trillion has been accorded, of which 99% of the procurement will be from Indian industries.

The supply chain ecosystem continues to witness a few challenges on account of the geopolitical dynamics around the world. However, the business has developed a robust and resilient supply chain over the years with self-reliance as the primary focus. The ongoing geopolitical situation has also provided a renewed perspective on kinetic and non-kinetic modes of wars and the impact of emerging and disruptive technologies and their usage.

The corporatisation of the Indian Ordnance Factory Boards (OFB) has unlocked the potential of the factories and is expected to enhance the efficiency of defence production within the country and rationalise available capacity and infrastructure.

On the Aerospace front, the Government has approved the Indian Space Policy 2023, which outlines the roles and responsibilities of ISRO, space sector PSU - New Space India Limited (NSIL) and Indian National Space Promotion & Authorisation Centre (INSPACe). The policy also opens up the sector for private participation in end-to-end space activities from building and launching launch vehicles and satellites to downstream space data collection and dissemination. INSPACe will play the role of Regulator and the Promoter / Facilitator and single-window hand-holder to Non-Government Organisations entering the space sector. The business has witnessed traction through orders being placed by the NSIL for the building of PSLV launch vehicles.

Major Achievements

During the year, the business has achieved multiple successes, uniquely reaffirming L&Ts positioning as a ‘nation-builder through a series of Make-in-India programmes. These include:

? Successful delivery of multiple land and naval weapon launch systems and engineering systems to the Indian Armed forces ? New benchmarks established by work centres in terms of accelerated realisation of systems and equipment (serial production category). Noteworthy ones include the supply of Large Survey Vessels to GRSE from Kattuppali Shipyard, the supply of Naval Weapon Launch systems from SSC Talegaon, and Space Launch Vehicle Hardware (PSLV & GSLV) from PMSC Coimbatore ? The Kattupalli Shipyard has created history by becoming the first Indian Shipyard to carry out repair works of United States Navy ships, i.e., USNS Charles Drew and USNS Matthew Perry ? The R&D and Design & Engineering teams continued their focus on emerging technologies to develop a range of products and solutions that are intended to future-proof the business. Unmanned systems solutions were developed and validated across four domains (Underwater, Surface Warfare for naval, land and air domains).

Significant Initiatives

Evolving through collaboration, the business has identified and signed MoUs / agreements with strategic partners to enhance business opportunities, both in domestic and international markets. R&D and innovation have been the backbone of the defence business since its inception and the business continues to invest in R&D to develop technologies and products.

The business has established its proficiency by leveraging Industry 4.0 across multiple R&D, Design & Engineering Centres and Production Work Centres that extend from equipment and systems to the building of complete platforms, such as warships, submarines and armoured systems.

Focused digital initiatives have led to accelerated productivity and achieved business excellence by means of meeting key deadlines, the evolution of innovative technologies and processes that could adapt to provide through life support, training, digital quality assurance and control, trial evaluation and acceptance.

The business continues to focus on the triple bottom line and green initiatives. It has achieved a significant y-o-y reduction in water and energy consumption, in line with L&Ts sustainability focus, carbon and water neutrality targets. The facilities continue to excel in the utilisation of green energy in operations.


In a volatile geopolitical backdrop, most countries across the world are expected to step up defence spending. In India, the experiences that have taken place at the borders over the recent years have catalysed the innovative adaptation of existing weapons / platforms for high-altitude operations as well as the development of indigenous weapons / platforms to meet the adverse environmental conditions and build force multipliers. This has brought about a renewed focus on the expeditious completion of trials of systems and their accelerated deployment.

While the Defence Capital Acquisition budget witnessed a moderate increase (~7% y-o-y) in the budget year FY 2023-24 over the previous financial year, the allocation for procurement from domestic industry has been enhanced from 68% to 75% of the total capital procurement budget, thereby resulting in a potential scaling up of domestic capital spend from ? 84,600 crore in FY 2022-23 to ? 100,000 crore in FY 2023-24. The Government has provided a major impetus for defence exports, with targeted exports of USD 5 billion in FY 2025-26.

The Defence Production Policy is being recast into a draft Defence Production and Export Promotion Policy (DPEPP), which is under consideration for implementation. The DPEPP has laid emphasis on building a robust defence industry with the inclusion of the private sector on a level playing field basis. Over 150 programmes have been identified for acquisition under the ‘Make route of DAP 2020 which focuses on indigenous design, development and realisation through Indian sources. Contracts worth ? 500,000 crore are expected to be placed on Indian industry within the next five years for the procurement of systems / platforms covered in the indigenisation lists.

The Indian space sector is fast emerging as a sunshine sector and promises to see tremendous growth in the coming years. The business has been a trusted industry partner to ISRO and has contributed to the indigenous capability of the Indian space sector for over five decades. The reforms announced in the space sector will enable private sector companies, like L&T, to take on the complete manufacture and integration of launch vehicles as well as satellite bus manufacturing and associated services.

Financial performance of the business

The Defence Engineering business recorded substantial growth of 50.1% y-o-y in order inflow by bagging some large value domestic orders aggregating to ? 12,125 crore, compared to ? 8,079 crore in the previous year.

Benefitting from a higher opening Order Book, the Defence Engineering business earned revenue of ? 3,504 crore, higher by 8.6% compared to the previous year. The share of international revenues decreased to 7% from 13% in the previous year with the tapering of an international order in shipbuilding.

The operating margin remains stable at 20.0% compared to 20.2% in the previous year.

The IT and Technology Services segment comprises:

(a) LTIMindtree Limited and its subsidiaries

(b) L&T Technology Services Limited and its subsidiaries

(c) Digital Platforms and Data Centers

Financial performance of the segment

The segment recorded revenue of ? 40,988 crore for the year ended March 31, 2023, registering a growth of 26.3% over the previous year, reflecting the improved growth opportunities in the sector. International revenue constitutes a steady 92% of the total revenue of the segment.

The segments operating margin has declined to 20.7% from 23.3% in the previous year mainly due to a one-time integration expense on consolidation of the two companies (LTI and Mindtree) and an increase in employee costs on the roll-out of staff augmentation programme and wage hikes.

The funds employed by the segment as at March 31, 2023, at ? 29,106 crore increased by 9.8% compared to March 31, 2022, mainly reflective of improved activity levels.



LTIMindtree (LTIM) is a global technology consulting and digital solutions company that enables enterprises across industries to reimagine business models, accelerate innovation and maximise growth by harnessing digital technologies. As a digital transformation partner to more than 700 clients, LTIMindtree brings extensive domain and technology expertise to help drive superior competitive differentiation, customer experiences and business outcomes in a converging world. Powered by nearly 90,000 talented and entrepreneurial professionals across more than 30 countries, the Company combines industry-acclaimed strengths in solving the most complex business challenges and delivering transformation at scale.

During FY 2022-23, the erstwhile Larsen & Toubro Infotech Limited, with an engineering DNA, and Mindtree Limited, with an experience DNA, successfully completed their merger and started operating as a merged entity, viz., LTIMindtree Limited. The combined entity possesses the capabilities of a Tier 1 company, while retaining the agility of a smaller company.

The business has a strong presence in each of the following verticals:

Banking and Financial services

LTIMindtrees strong domain and technology capabilities, focused sub-industry offerings and a strong partner ecosystem enable true end-to-end transformation. The business helps BFSI customers modernise their core, reimagine their go-to-market models, adopt cloud, leverage data and insights and improved engagement with their customers through insightful analytics, personalised marketing and curated experiences. LTIMindtree also helps customers with their ESG journeys by creating strategies, providing intelligence services, managing risks, staying compliant and generating green alpha.


LTIMindtree enables solving of complex problems such as digital adoption, fraud management, customer experience, speed-to-market, underwriting profitability, operational efficiency and distribution effectiveness through its domain expertise in technologies such as RPA, AI, ML, data and analytics.

Communications, Media and Entertainment

The CME industry is ideal for applying digital at scale and amplifying business outcomes. LTIMindtrees clients – such as broadcasters, streamers, telecom ISVs and out-of-home services – are using the Companys expertise to open new doors to a limitless future. LTIMindtree has the industry experience to leverage cloud, data, analytics, AI / ML, AR / VR, NFT, metaverse, 5G and IoT, which are pivotal in creating new rules in the CME business.


LTIMindtree is already powering the digital transformation of energy organisations with technology solutions and services that not only help them achieve their core operational goals of safety, reliability, efficiency and profitability, but also help monitor, track, account and report their carbon footprint. The Company assists in trading carbon credits through holistic emissions management and decarbonisation of operations and expansion into renewables. LTIMindtrees comprehensive next-generation solutions are designed for upstream, oilfield services, midstream, downstream and renewables, and are helping clients to adopt an array of emerging technologies to enhance their capabilities in the entire value chain.


Utility enterprises are reinventing themselves towards the path of becoming digital organisations. Most of them have embarked on a digital transformation journey, driven by increased developments in smart grid technologies such as smart meters, AMI, smart inverters, advanced T&D sensors, distributed energy resources and behind-the-meter technologies. LTIMindtree understands the new solutions and methodologies required for connecting the physical and digital worlds through end-to-end IT / OT capabilities and is leading the charge in providing automation and control systems, powerful real-time advanced analytics and decision support capabilities, as well as extending customer engagement benefits.


The Company works with customers across the payer, provider, healthcare product manufacturer, pharmacy and benefits manager landscape, among others, to provide a deep and broad set of business solutions ranging from new and exciting consulting strategies to bold technology solutions across the enterprise. LTIMindtree helps the entire value chain by deploying cognitive and ML capabilities to improve decision-making, allowing them to leverage data engineering, cloud, AI, ML, process automation, predictive analytics and collaboration tools.


LTIMindtree has been partnering with global Hi-Tech leaders in their journey to reimagine their product and service roadmaps, and has been creating new revenue streams, re-engineering business processes, devising next-generation immersive customer experiences and impacting profitability for the clients. The expertise around cloud-native services, intelligent edge devices, geospatial technologies, core process digitisation, AI and IoT-powered approaches to increasing yields, and an understanding of the subscription economy to amplify clients business outcomes.

Life Sciences

The trend of collaboration could be an early signal for healthcare to become more affordable and accessible, while also accelerating personalised medicine and a patient-centred treatment journey. LTIMindtree has been a part of these changes across the industry, creating digital technology-enabled solutions for faster drug discovery, lower R&D costs, more diverse trials, adaptive manufacturing, a transparent supply chain and governed regulatory needs.


The Company, with its vast experience across manufacturing, helps its clients to quickly adapt to the changing technological environment. Its solutions, service offerings and Domain SMEs are geared to address all IT-related aspects of the Customer-Dealer-OEM-Supplier ecosystem. Clients can reduce operational costs and complexity, and effectively address project risks and compliance with the solutions provided by LTIMindtree.

Retail & CPG

LTIMindtree leverages technology to drive deeper consumer / customer relationships, reimagine products and services, redefine value chains, and innovate into the future with new business models. With the latest technologies, the Company helps clients to enhance consumer intimacy, drive channel excellence, have a future-ready core, monetise data, and become agile and efficient. This includes leveraging cloud, data sciences, AI, ML, IoT, RFID, AR / VR, automation, etc.

Travel, Transport and Hospitality

Airlines, freight carriers, logistics companies, cruise liners, hotels and restaurant chains have successfully used LTIMindtrees intelligent technologies to deliver seamless customer experiences, loyalty management, improve freight planning, create resilient supply chains and build dependable demand and capacity management systems. The Company leverages decades of experience and expertise in integrating industry-specific platforms with ERP, partner systems, virtual technologies, automation, IoT, multi-cloud environments, and data and analytics to stitch cluttered and disjointed applications and infrastructure into a unified digital system.

LTIMindtree has offerings across the following service lines:

? Customer Success
? Data & Insights
? Cloud & Infrastructure
? Cyber Security
? Digital Engineering
? Quality Engineering – Testing
? Connected Universe – NxT
? Platform Operations
? Geospatial Engineering – NxT
? Enterprise Cloud Apps
? Salesforce
? Oracle

Alliances and Partnerships LTIMindtree has built a strong ecosystem of partners that enables it to drive significant value for its clients in an ever- changing technology landscape. Last year, the Company significantly deepened its engagement with partners by investing in scaling capacity, co-creating joint offerings, building Centres of Excellence (CoEs) and signing on to exclusive partner programmes to accelerate business momentum in key focus areas such as Cloud, Data, Security and Customer Experience, among others.

The Company also witnessed the inauguration of two state-of-the-art innovation centres in collaboration with AWS and ServiceNow. LTIMindtree now has a 360-degree relationship with many of its strategic partners, which has enabled it to have a resolute focus on achieving joint business outcomes and creating exponential business growth.

With a view to strengthening its existing capabilities in key areas such as Data, Security, Customer Experience and FinTech, LTIMindtree has expanded its alliance portfolio by incubating partnerships with Alation, Thoughtspot, Query Surge, Snaplogic, Redpoint, Treasure Data, Turbotic, WSO2, Cyfirma, TrustMapp, Knowbe4, Everbridge, Workday and Mambu. In addition to this, the Company also signed agreements with Google Cloud, Microsoft and IBM for regional expansion as well as partnering in new joint programmes.

Some of the Companys key partner relationships are:


The Company is an Amazon Partner Network Premier Consulting Partner for Amazon Web Services (AWS). The Go-to-Market strategy on AWS is a trifecta approach cutting across areas like Data & Analytics, Migration and Application Modernisation. LTIMindtree has enabled large Data Center exits and assisted global enterprises in successfully migrating and modernising their applications on the AWS cloud. Additionally, the Company has helped enterprises in migrating from traditional databases to modern AWS databases like AWS Aurora, uncovered business insights and helped customers monetise their data through niche Data and Analytics IPs and Accelerators, built on the AWS cloud.


LTIMindtree is a Global System Integrator and Premier Partner for Google Cloud Platform (GCP) and Google Workspace. The Go-to-Market strategy with GCP comprises big bets in the areas of Data Lake Modernisation, EDW Modernisation, Modernise Traditional Applications & Platforms, Mainframe Cloudification and Security Operations. The Company is also a strategic vendor to Googles ‘Professional Services Organisation (PSO), providing Google Cloud customers with qualified partners that have demonstrated technical proficiency and proven success in specialised solutions and service areas.


The Company has a long-standing 360 Degree Gold partnership with Microsoft and has significantly strengthened its credentials. It also received a solution partner designation in the areas of digital and app innovation, infrastructure, data and AI, security and modern work. LTIMindtree is also a member of exclusive Microsoft programmes including the Mixed Reality Partner Programme and the Microsoft Security Solutions Provider programme.


LTIMindtree is an IBM GSI and Platinum Business Partner with global coverage. The Go-to-Market priorities with IBM include digital business automation, sustainability, hybrid cloud and security. LTIMindtree has six Expert-level IBM competencies in Digital Business Automation, Cloud Integration and Development, Assets and Operations, Cloud Management, Threat Management and Digital Trust. The IBM Partner Solution Showcase portal now includes LTIMindtrees joint offerings iDigitalisation (iDz) and Digital Hybrid Infrastructure Platform (DHIP).


The Company is one of SAPs 19 Global Strategic Services Partners (GSSP) which assists organisations in leveraging the latest SAP innovations such as RISE with SAP, S / 4HANA Cloud (Private / Public), Industry Cloud Solutions, SAP Business Technology Platform (BTP) based Platform-as-a-Service (PaaS) offerings, Sustainability, Mid-market and various other solutions.


For over 20 years, the Company has been a trusted partner of Oracle, enabling customers to leverage cloud technology. As a Global Expertise and Cloud Solutions

Provider Expertise partner, LTIMindtree collaborates with Oracle on marketplace offerings, competency centres and customer advisory boards. LTIMindtrees services include Oracle Cloud Application, Oracle Cloud Infrastructure, Enterprise Applications and Industry GBU Applications. Its expertise lies in Oracle Application Development, Digital Native Applications, Applications to Oracle Cloud, Database to Oracle Cloud, DevOps, Platform Integrations and Data Management.


The Company has established a strong partnership with Snowflake, earning the highly coveted Elite Partner status and being named one of Snowflakes top three partners globally.


LTIMindtrees strategic partnership with ServiceNow spans programmes like Sales, Services, Service Provider and Technology Partner Programme. LTIMindtree has become an Elite partner of ServiceNow. LTIMindtrees Managed IT Services solution helps the client to get the speed and quality of IT services required to be on top of changing business needs.


The Company is an established premium consulting partner of Salesforce, with over 18 years of experience on the platform. As a Summit (Platinum) Partner, LTIMindtree specialises in Salesforce / MuleSoft implementation strategies to drive digital growth through deep client engagement. The services range from Strategy Consulting and Solution Design to Implementation and Application Value Maintenance.


LTIMindtree is a Global Platinum Solutions Partner for Adobe - the highest level of GSI partnership that they offer. The GTM focus areas cut across Data and Personalisation, Omnichannel Commerce and End-to-End content lifecycle. The partnership brings a full suite of customer experience transformation services to their digital transformation programmes.


LTIMindtree and Pegas partnership has strengthened significantly in FY 2022-23. The acquisition of Ruletronics, a pure-play Pega consulting and implementation player helped scale up the Pega credentials significantly. During the year, LTIMindtree was included by Pega in its exclusive list of Global Strategic partners. With Industry and Marketplace Solutions, Successful Customer Implementations, a Certified skill set and joint GTM activities, the Company has earned a reputation as one of the most valuable and preferred partners for Pega.

Hitachi Vantara

The Company partners with Hitachi Vantara as a Global System Integration Partner, helping clients harness the potential of digital technologies. The GTM focus areas are along Storage-as-a-Service, VDI-as-a-Service and IaaS (Infrastructure-as-a-Service). LTIMindtree leverages Hitachi Everflex to offer the power to scale-up and flex as businesses demand change and efficient pay-as-you-go offerings to keep IT costs aligned with business usage with powerful SLA guarantees.


LTIMindtree is a Cisco Gold Partner with a 360-degree relationship. The collaboration with Cisco enables LTIMindtree to provide next-generation IT solutions and services to its customers by leveraging various Cisco architectures. The Company leverages the Cisco partnership in initiatives for software-defined networking, data center transformation, application transformation security, unified communication, IoT and smart city projects.

Duck Creek

The Company is a Premier System Integrator partner of Duck Creek Technologies with over 20 years of experience on the platform. LTIMindtree specialises in Duck Creek solutions and services to help insurance clients globally transform their businesses using modern core systems and digital innovation. The differentiated solutions increase business agility, accelerate product rollouts, maximise operational efficiency, leverage cloud adoption, enhance customer experience and deliver meaningful cost savings for insurance carriers using the Duck Creek platform.

Business Environment

For the IT industry, FY 2022-23 has been a year of continued revenue growth with a focus on strengthening the industry credentials and building on trust and competencies. The volatile global economic scenario and higher cost pressures continue to support the demand for technology adoption and digital acceleration. Consequently, technology continues to be a strategic imperative that is a critical component of business innovation and transformation, as well as a source of improving operational and cost efficiencies.

Indias technology industry exhibited continued growth in constant currency terms and is expected to cross USD 245 billion in FY 2022-23.

Further, NASSCOM anticipates that the sector is on track to hit USD 500 billion by 2030. The proportion of digital tech in the overall technology services revenue has been increasing with every passing year. From around 26-28% in FY 2019-20 to leapfrogging to over 32-34% in FY 2022-23, there has been increasing penetration of digital tech in the industry. The industry continues to be a net hirer, adding 2.9 lakh new jobs and taking the total employee base to ~54 lakh (5.7% y-o-y growth), strengthening its position as the ‘Digital Talent Nation for the world.

Key Deal Wins

? A leading digital marketplace for the automotive industry has selected the Company as its lead transformation partner for the consolidation of all digital initiatives ? A leading North American public utility company has chosen the Company as a strategic long-term partner for Infrastructure & Cloud Managed services ? An Energy and Utility company partnered with LTIMindtree to lead their digital transformation journey towards green energy ? A North American Energy company selected LTIMindtree for a multiyear deal involving Data, Cloud enablement and Infra and Managed services

Significant Initiatives

LTIMindtree has always strived to leverage its capability in diverse domains and is also continually investing in building expertise in exponential technologies. While last year, the areas identified were Metaverse, Cloud, Analytics, Industry 4.0, Artificial Intelligence (AI) and Automation, this year has witnessed an exponential deep dive into some of these identified areas where LTIMindtree was able to identify dependent technologies that would take it to the next level. For example, in Metaverse, LTIMindtree was investing in Web3 & Decentralisation, Mixed Reality, Generative AI, Spatial Technologies and IoT for Smart Spaces. Quantum Technologies, AI-driven Automation and a focus on ML and LLMs are other areas LTIMindtree has identified for its medium-term absorption roadmap.

The real-time tracking of technology absorption has enabled LTIMindtree to classify technologies under 3 categories such as evolving/expanding immersive experience, accelerated AI automation and optimised technology delivery.


The global economic environment is likely to remain uncertain and volatile. The IT industry faces challenges ranging from geopolitical tensions to supply chain uncertainties, ongoing semiconductor and raw material shortages as well as enactment of new legislations across different countries and possible trade restrictions impacting business outcomes. Globally, the enterprises are likely to see headwinds – demand contraction in some markets – and this uncertainty may result in delayed decision-making.

Nevertheless, NASSCOMs Annual CXO Outlook Survey 2023, indicates that while enterprises digital transformation remains a core strategic priority for 2023, cost takeout and optimisation requirements are expected to remain in demand given the macro environment. AI and analytics, cybersecurity and cloud-related spends are in a multi-year super cycle and shall remain the primary catalysts of growth along with more integrated use cases and higher value realisation.

Finally, the business will continue to invest in innovation, new growth engines and platform-led delivery models and keep expanding through organic and inorganic means to get access to new capabilities and geographies.

L&T Technology Services


L&T Technology Services Limited (LTTS) is a leading global pure-play Engineering Research and Development (ER&D) services provider. The business offerings comprise consultancy, design, development and testing services across the product and process development lifecycle.

LTTS provides services and solutions in the areas of software and digital engineering, embedded systems, engineering analytics and plant engineering. Its customer base includes 69 Fortune 500 companies and 57 of the worlds top ER&D companies across multiple segments, viz., transportation, telecom & hi-tech, plant engineering, industrial products and medical devices. The Companys engineers and technologists collaborate with leading global firms to drive smart solutions and services for new product development, facilitate remote asset management and enable virtual product design and prototyping.

In the Q4 FY 2022-23, LTTS crossed a significant milestone of achieving a USD 1 billion revenue run rate, underscoring its dominant position amongst the leading global ER&D companies.

The key differentiators for LTTS business are its value-maximising customer-centric innovations, domain expertise and a multi-vertical presence spanning major industry segments:


LTTS Transportation Engineering services enable global OEMs and Tier 1 companies to develop next-generation vehicles and aircraft systems, achieve a faster time-to-market and drive innovation across their respective domains.

The Company partners with global customers in the automotive domain, leveraging its robust and reliable platform and solution offerings across key emerging areas, including, Electrical Vehicle (EV) technologies, Advanced Driver Assistance System (ADAS) and Autonomous Drive (AD) frameworks.

LTTS has over a decade of expertise in the Trucks and Off-Highway segment and offers its services across Construction and Mining, Cranes and Material Handlers, Commercial Vehicles, Agricultural and Gardening Equipment, Powersports and Polymer industries.

In the aerospace sector, LTTS offerings encompass a wide spectrum across aero engines, aerostructures and systems, avionics, air traffic management systems and new-age digital transformation solutions. The Company is helping Aerospace OEMs and Tier 1 manufacturers maximise ROI, meet compliance standards and enhance quality.

Industrial Products

LTTS leverages its deep domain expertise in software, hardware, mechanical engineering, industrial networking protocols, the Industrial Internet of Things (IIoT), smart industry products, test frameworks and enterprise control systems to support its growing customer base for industrial products worldwide. The results are translated into a robust presence across building automation, home and office product design, energy management, process control and machinery design.

The Company is also involved in driving global supply chain optimisation to help customers explore alternate sourcing avenues in the post-pandemic economy. With digital manufacturing emerging as a major focus area, LTTS is driving multi-layered digital transformation initiatives for customers to help unlock the true potential of emergent technologies in the Industry 4.0 ecosystem.

Following its acquisition of L&Ts Smart World and Communication business (SWC), LTTS is set to expand its capabilities with new-age offerings around Sustainable Smart World, leveraging the global momentum in favour of smart spaces and integrated facilities.

Telecom & Hi-Tech

LTTS Telecom & Hi-Tech vertical delivers engineering services and solutions across five major domains, viz., Telecom, Consumer Electronics, Semiconductors, Independent Software Vendors (ISVs) and Media & Entertainment (M&E).

The business is leveraging its extensive ER&D capabilities to enable leading telecom OEMs and CSPs across geographies to help organisations unlock value from private networks for business applications. With the acquisition of L&Ts Smart World & Communication business, LTTS is set to enhance its capabilities and offerings across the next-gen communications space by driving significant network architecture, orchestration and management capabilities.

The Company supports its semiconductor customers with a range of services covering hardware system design, platform software development, modem services, verification and validation, multimedia, connectivity, storage, mechanical engineering and customer engineering facilities.

LTTS has long-standing partnerships with leading ISVs for cutting-edge VLSI, application engineering, cloud engineering, platform development and migration, product uplift and support, and testing and certification solutions.

In Media & Entertainment, the Companys offerings span product engineering, conceptualisation, design and development, testing and certification, manufacturing support, maintenance, and value engineering. LTTS continues to explore and expand its partnership ecosystem with leading participants in the emerging OTT space to capitalise on the momentum generated by tectonic shifts in global media consumption patterns.

Plant Engineering

LTTS offers chip-to-cloud capabilities across designing, engineering, project management, handover operations, and delivery and maintenance of custom digital solutions. The Company is an Engineering, Procurement and Construction Management (EPCM) services specialist and supports stages across a plants lifecycle – from conceptualisation to commissioning. LTTS multiple Value Engineering Centres across geographies help drive business success for its global customers.

LTTS Plant Engineering vertical caters to diverse industries, including Consumer Packaged Goods, Chemicals and Energy & Utilities. The Companys digital solutions continue to enable manufacturers in their journey to upgrade, integrate and redefine their legacy operations with smart platforms, state-of-the-art connectivity and deep synergies for delivering transformative business outcomes.

Medical Devices

Combining an industry presence of over three decades with multi-vertical engineering expertise, the business works closely with leading healthcare providers and device manufacturers. This includes delivering solutions for remote medical care, Quality Assurance and Regulatory Affairs (QARA), in-vitro diagnostics, patient mobility solutions, surgical services, home healthcare and the Medical Internet of Things (MIoT).

The Company leverages its digital engineering capabilities to accelerate product development cycles, reduce time to market, deliver sustained value engineering and ensure seamless multi-geography compliant product launches for healthcare device manufacturers. The business offerings include digital health management and healthcare operations, cover chronic disease management, remote monitoring, decision support, clinical workflow optimisation, care collaboration portals and health monitoring platforms.

LTTS continues to redefine the current medical product design methodologies with cutting-edge digital technologies, solutions, and platforms, ensuring business success for its global customer base through enhanced regulatory compliance, best-in-class quality and revitalised operational paradigms.

Business Environment

The global ER&D landscape is expected to maintain its robust growth trajectory. Zinnov estimates the industry to be worth around USD 2 trillion by 2025, growing at a 6% CAGR. Digital engineering is projected to constitute over 53% of this global ER&D spend, with significant traction being expected around emerging and new-age technologies.

The impact of new-age offerings, viz., AI, IoT and 5G is evident in the rising demand for innovative solutions and translates into significant opportunities for global businesses looking to redefine and revitalise their products and services.

Leveraging the availability of a young and talented workforce and combined with a growing focus on innovation, Indias share as a destination for global ER&D spend is expected to grow substantially.

The Companys robust growth trajectory continued to be defined by its key differentiators around deep, multi-vertical domain expertise, enabling value-maximising, customer-centric innovations across major industry segments.

Major Achievements

LTTS registered several major deal wins across all its verticals. Large deal bookings were also high, led by two marquee deals of TCV USD 50 million and USD 60 million, and several others over USD 10 million.

Key Deal Wins


? Strategic engineering partner to Airbus for providing Advanced Engineering Capabilities and Digital Manufacturing Services under a multi-year contract ? A US-based off-highway equipment OEM company selected LTTS as its strategic partner to develop capabilities around Embedded Software, Control Systems and Software Verification / Validation Engineering ? Five year, multi-million-dollar deal from BMW to provide high-end engineering services for the companys suite of infotainment consoles in its family of hybrid vehicles

Industrial Products

? Multi-year product sustenance programme for a large European material handling and logistics automation company

? Multi-year agreement with a leading energy conglomerate to provide consulting, implementation and sustenance of Asset Integrity across the customers major assets ? Chosen as an engineering partner by a global provider of industrial automation, for end-to-end product design, firmware development services and the development of automation platforms

Telecom & Hi-Tech

? A global technology company selected LTTS as its preferred technology partner for developing robust testing and accelerator frameworks for its embedded systems ? Selected by an American technology company for developing safety libraries and embedded firmware implementation for its family of chipsets. The engagement includes LTTS software safety qualifications, CSP generation, architecture and software components design.

? LTTS was empanelled by a leading network solutions provider to build, operate and manage a 5G radio testing lab for end-to-end test services on ORAN (Open Radio Access Network), including lab operations and management services.

Plant Engineering

? Engineering partner for a global Oil & Gas major for niche engineering and technology support to help the customer expand its market share ? Preferred partner for the digital transformation of a large Swedish food processing and packaging companys integrated content management system to drive standardisation and compliance ? A large Industry 4.0 deal from a leading multinational food and beverage company to improve operational efficiencies by re-engineering centralised maintenance operations

Medical Devices

? A medical devices leader awarded LTTS a multi-year engineering programme contract for its product line ? Data engineering programme for a global healthcare provider to track and monitor the execution of triage and vigilance preparation and to help accelerate productivity and reduce training costs ? Programme to help an international healthcare firm harmonise and streamline their Quality Management Systems (QMS) across North America, covering support across R&D, product quality, manufacturing and supply chain management

Significant Initiatives

LTTS has continued to invest significant time and effort in strategic initiatives that will propel its technology footprint, engineering infrastructure and human resources, with the objective to provide a differentiated experience to its customers.

? LTTS inaugurated its Engineering Design Centre (EDC) in Toulouse, France, to cater to the new-age digital requirements of the global aerospace and defence sectors. The centre will specialise in end-to-end solutions for aerospace design and manufacturing.

? The Company unveiled its Engineering, Research and Development (ER&D) centre in Krakow, Poland, to cater to customers in Automotive, Mobility and Hi-Tech domains. The ER&D centre will support major customers in Europe and North America.

? LTTS is collaborating with Qualcomm Technologies, Inc., to deploy end-to-end solutions for the global 5G Private Network Industry utilising their combined core expertise in the Hi-Tech & Telecommunication domain ? LTTS, in collaboration with ISG and with CNBC TV 18 as media partner, initiated the first ever Digital Engineering Awards to recognise and honour engineers and organisations at a global level for their pioneering work and to promote engineering services and technology innovation. The inaugural edition of the Digital Engineering Awards attracted over 120 applications from more than 70 global organisations across North America,

Europe, and the Asia Pacific, active in the Automotive, Aerospace, Industrial Products, Plant Engineering, Telecom and Hi-Tech domains.

? The Company expanded its global footprint with the launch of a new Engineering Research & Development (ER&D) centre in Toronto, Canada, two new design and prototyping centres in Peoria, USA, and a centre of excellence in Pune, India


As the nations largest pureplay ER&D services provider, LTTS registered double-digit growth during FY 2022-23. This is built on top of its stellar 20% growth achieved during FY 2021-22. Digital and emerging technologies were the key drivers of this journey as the Company now focuses on the next milestone, to be at the forefront of innovation-led growth.

The Companys industry-leading performance continues to be defined by significant investments across emerging technology areas, including the six Big Bets – Electric Autonomous & Connected Vehicles (EACV), 5G, MedTech, Digital Products & AI, Digital Manufacturing and Sustainability. The Company is witnessing significant traction across each of these focus areas, with several marquee deal wins in the global markets.

The Companys deep engineering and domain expertise continues to drive innovation across cutting-edge devices, evolved manufacturing practices, and state-of-the-art products and services. Achieving yet another milestone of

filing over 1,000 patents to date further demonstrates the Companys technological prowess.

The Companys acquisition of L&Ts Smart World and Communication (SWC) is expected to be a major enabler in this direction. SWC has a proven track record of delivering innovative solutions in the areas of next-gen communications, sustainable smart world and cybersecurity – core capabilities in alignment with three of LTTS six Big Bets. The business is well placed to take these offerings to the global market, besides delivering additional value for existing customers and leveraging the new capabilities acquired.

LTTS is present in 25 countries worldwide. It is adding talent and capabilities across focus geographies as a part of the continued commitment to drive global expansion.

The Company continues to explore new partnerships with leading global organisations to redefine and revitalise the digital journeys of its customers across industries and geographies, reaffirming its vision of Engineering a Sustainable Tomorrow through Technology and Innovation.

Digital Platforms and Data Centers

This business mainly includes new-age businesses incubated by the Company namely L&T EduTech, L&T-SuFin and Data Centers. These ventures are a part of L&Ts plan to leverage digital technologies in some of its core domains in order to future-proof them and tap future growth opportunities.

L&T EduTech

L&T EduTech is an Edtech platform launched in October 2021 offering a superior online and hybrid educational experience by using a technology-intensive, user-friendly platform. It collaborates with universities, corporations, Non-Governmental Organisations and Government bodies to provide access to state-of-the-art technical and skill-based education. With its robust learning management system, skill exchange platform, knowledge sharing community (Engineers Ensemble: National Engineers Forum) and micro-learning platform (endorsed by All India Council for Technical Education [AICTE]) the platform facilitates lifelong learning, enhancing the learners educational journey.

The four major verticals of L&T EduTech are:

College Connect: This vertical aims to narrow the gap between academic learning and practical industrial experience. It offers courses in core Engineering, Information technology, Arts and Science with industry-specific application knowledge. This vertical also organises career guidance sessions, conducts regular faculty development programmes and offers industry immersion programmes to deliver a superior learning experience to both teachers and students.

Professional Skilling: This vertical offers upskilling and reskilling opportunities for corporate employees with a number of product packages, including .Net, Java, Data Analytics, Cybersecurity and more.

Assessments: This vertical runs a robust auto-proctored assessment platform that helps organisations in their recruitment process of fresh talent and workforce development. It includes workplace competency assessments, hands-on coding assessments, National Engineering Competency Test (NECT), etc.

Vocational Skilling: This vertical provides e-learning courses to blue-collar employees in diverse industries, with a focus on ensuring safety, quality and productivity.

We are planning to add Emerging Tech business as a new vertical next year, which will include skilling in futuristic areas, viz., Electric Vehicles, Drone Technology and Meta.

Major Achievements

? Collaborated with over 40 colleges and 10+ corporations for numerous skilling programmes ? Partnered with over 10 renowned companies for course content and software integration ? Signed MoU with AICTE to be a partner in ensuring high-quality technical education to all sections of the society ? Collaborated with Gujarat Technological University (GTU) to offer niche industry-abridged certification courses directly to students of GTU and its affiliated colleges

? Collaborated with KPR Institute of Engineering and Technology (KPRIET) to launch Experience Engineering, a joint venture immersive learning centre ? Engaged with Tamil Nadu Skill Development Corporation (TNSDC) and Additional Skill Acquisition Programme (ASAP) Kerala to upskill students from the higher education segment ? Signed an MoU with Construction Skill Development Council of India (CSDCI) that would certify that the digital content curated by L&T EduTech would meet the National Skills Qualifications Framework standards, conducting assessments, facilitating placements, sharing demand, etc.

The Indian edtech market is expected to reach USD 30 billion by 2031, from USD 700-800 million in 2021. According to KPMG, India has also become the second largest market for E-learning after the US. Industry-led curriculums and cross-functional credits are only going to increase in number since there is a dearth of continuous industry-based knowledge and upgradation among the students and professionals of India. Additionally, digitalisation has made it easier for people to learn at their own pace, anytime and anywhere. These factors provide a positive outlook for the scalability of L&T EduTech in the years to come.


L&T-SuFin is a platform which was launched in March 2022 for SME / MSME buyers and sellers to connect in an efficient and transparent manner, thereby enabling sellers to expand their sales reach and for buyers, to find the right products and services at an optimal cost and quality. The platform offers a wide product range in industrial supplies and consumables, building and construction materials, electrical and electronics equipment, machinery tools and mechanical equipment and packaging, printing and office supplies, etc.

In 2022, B2B E-commerce GMV (Gross Merchandise Value) was USD 11 billion in India and is expected to reach USD 55 billion by 2027. Similarly, the total transaction value in the Digital Payments segment in India is projected to reach USD 150-200 billion in the next 3-4 years from the current USD 65 billion. Clearly, India is undergoing a Digital Revolution. L&T is also playing its role in this space by launching L&T-Sufin – an E-Commerce platform which has just completed its first year of operation.

Major features offered by L&T-SuFin include:

? Discovery of the B2B products market and sellers through an efficient digital process ? Getting a competitive price through a Request for Quotation (RFQ) mechanism and online transaction fulfilment ? Financing support from partner banks and NBFCs ? Logistical support, including transit insurance In the first year of its operations, the business has catalogued over 3 lakh Stock Keeping Units (SKUs) in 45 categories. The business has onboarded over 30,000 sellers on the platform in FY 2022-23. L&T-SuFin has been recognised as one of the 10 Most Promising B2B Marketplaces in India by Silicon India magazine in the year 2022.

The Business has also implemented several new initiatives to catalyse growth and scale up further. These include:

? Original Equipment Manufacturers (OEMs) are being approached for nominating Key Distributors or Dealers (Key Sellers) of their brands who would provide competitive rates and assured service of the branded products in order to make these items attractive on the platform ? To improve the adoption rate for Request for Quotation (RFQ) generation and response by simplifying guidance on the platform and implementing WhatsApp-based RFQs. A central RFQ team has been formulated which provides assisted RFQs for Buyers requiring Platform assistance but having critical volumes ? Providing finance to the Buyer or Seller for doing transactions on the platform through Partner Banks or NBFCs has created higher dependency and repeat purchases on the platform The business is planning to venture full-fledged into white-labelling of goods from the next year, by tying up with Contract Manufacturers and selling in the market through its registered brands for select products. The business has also entered a partnership with CREDAI-MHCI and has done industry events with recognised bodies like CII, ASSOCHAM and various local chambers, etc., to strengthen industry connections and get new leads.

In FY 2023-24, the business plans to achieve ISO 27001 compliance and will also be available through a mobile app, leading to greater ease of usage and convenience.

Data Center and Cloud Services

L&Ts Data Center is a new business unit of L&T which will offer Colocation Services (space, power, CCTV monitoring) to MSME and other enterprises. In addition, it will also offer Cloud Services as (a) Infrastructure as a Service-IaaS (viz., Application Integration Services) and (b) Platform as a Service-PaaS (viz., operating systems and database management) models. The Company has committed investments to set up modern state-of-the-art Data Centers in Mumbai and Chennai. A website named L&T-Cloudfiniti has been launched to provide these services.

Data Centers contain physical or virtual servers that centralise shared IT operations and equipment for the purpose of storing, processing and disseminating data and applications with critical infrastructure such as power, cooling and internet connectivity.

Indias Data Center market is one of the fastest growing, with 138 data centers (~750 MW) in FY 2021-22 and new data centers with 1,000+ MW capacity expected to come up by the end of FY 2024-25. With an aim to achieve a Digital Economy of USD 1 trillion by FY 2025-26, the Government of India has come out with many incentive schemes to support the ecosystem of the Telecommunication and Information Technology industry by creating a conducive environment for Data Center business growth in India.

Finally, India has witnessed a major change in its technological landscape in the last 10 years, making fast-paced progress towards a full-fledged digital economy. With time, the volume of data and need for analytics is only expected to move higher, thereby creating an acute need to have multiple data centers. Further, policies around data localisation also accentuate this requirement. Although there are a few concerns like lack of a unified single window clearance across the country for setting up Data Centers, unavailability of redundant infrastructure such as network and power connectivity and scarcity of skilled manpower, the business is reasonably confident to cross these teething hurdles and emerge successfully as a leading player in this fast-growing sector.


L&T Finance Holdings Ltd. (LTFH), incorporated in 2008 and listed in 2011, domiciles the financial services aspirations of the Group. It is one of the Indias leading NBFCs, having a strong presence across lending businesses.

LTFH embarked on the strategy of ‘Lakshya 2026 to become a digitally-enabled retail finance company, moving from being ‘product-focused to customer-focused, thereby pivoting to become a FinTech@Scale. FY 2022-23 was characterised by the reshaping of businesses towards ‘Retailisation with the intent of creating sustainable, long-term value for all stakeholders in line with the Lakshya 2026 plan.

LTFH has a granular digital and data analytics-powered retail franchise pan-India, delivered through a network spanning 27,500+ employees, across more than 100 cities / towns and about 2 lakh villages with over 28,000 touch-points. This, in turn, caters to the requirements of more than 2 crore customers through a suite of customer-focused products.

Retail Finance

The Retail business comprises the following:

Rural business loans and Micro-loans

The Rural Business loans and Micro-loan products, backed by a strong rural presence and digitally-enabled processes, are committed to the financial inclusion of the unserved and underserved rural customer segment. During the year, the

Business achieved a disbursement growth of 70% y-o-y to

? 16,910 crore, to over 30 lakh rural women customers. The loan portfolio in this segment stands at ? 18,693 crore as on March 2023, growing at 41% on a y-o-y basis.

Farm Equipment Finance

Domestic tractor volumes grew by 12% on a y-o-y basis to 9.4 lakh, on the back of a good monsoon, adequate reservoir levels, robust mandi arrivals of crops and a record Rabi sowing. Retail demand across key geographies continued to be strong on the back of positive customer sentiments led by finance availability, better price realisation of crops and favourable Minimum Support Prices (MSPs). LTFH, with its strong Original Equipment Manufacturer (OEM) and dealer relationships, continued to be a leading player in this space by financing more than 1 lakh new tractors.

LTFHs digital-assisted app proposition offers a seamless onboarding experience with an industry-best Turnaround Time (TAT) of less than 24 hours. This has resulted in disbursement growth of 25% y-o-y to ? 6,450 crore and a book growth of 13% y-o-y to ? 12,819 crore.

Urban Finance

? Two-wheeler Finance

The two-wheeler industry grew 19% during the year, with domestic sales increasing by 14%. However, it is yet to reach the peak pre-COVID levels. Despite this, LTFHs performance has outperformed the sector, with disbursements of ? 7,110 crore and a book size of ? 8,960 ??crore, increasing by about 20% y-o-y and resulting in about 8.45 lakh units being financed.

The underwriting process in this business is powered by an algorithm-driven engine which ensures quick processing and industry-best TAT. This acts as a catalyst for maintaining a leadership position in the market.

? Home Loans and Loan Against Property (LAP)

The mortgage market in India (industry size of ? 27.6 trillion for Home Loans and ? 6.24 trillion of LAP), coming out of the pandemic, witnessed steady growth in FY 2022-23 despite being faced with a rapidly rising interest rate cycle wherein RBI orchestrated a 250 basis points (bps) increase in Repo rate between May 2022 and February 2023.

LTFH has expanded its business with an increase of 97% in disbursements over the previous year reaching ? 4,730 crore and 26% growth in book reaching ? 13,410 crore. This has been achieved with the business changing the customer mix of Salaried and Self-Employed Non-Professional (SENP) customers for new disbursements.

To strengthen the distribution network, the Business has created a multi-directional distribution channel by sourcing Direct Selling Agents, Referral Agents, Developers and Digital business.

Consumer Loans

The Personal Loan industry in India is witnessing consistent double-digit growth year after year, with a market size of

? 9.9 trillion. Despite the existence of several loan products in the market, online Personal Loans (PLs) have emerged as one of the most favoured loan options.

LTFH embarked on launching this product two years ago by tapping into its two-wheeler customer base, harvesting a database of over 65 lakh customers as of March 2023. This year, based on the success of this product, the Business expanded the sourcing channel to e-aggregators comprising partnerships with over 15 FinTech players, aggregators and BFSI companies. As a result of these efforts, the Business has disbursed ? 4,886 crore in FY 2022-23, translating to a book size of ? 5,471 crore.

Small and Medium Enterprise (SME) Finance

LTFH forayed into the financing of professionals and small businesses through a new vertical – SME Finance in FY 2021-22. Post an initial pilot project to establish and firm up its proposition, LTFH launched it as a full-fledged proposition in FY 2022-23. The franchise, which started with 2 locations, has now expanded to 19 in FY 2022-23 with disbursements of ? 1,473 crore, leading to a book size of ? 1,378 crore and a customer base of more than 6,000. LTFH has created its distribution framework through its 130+ channel partners pan-India.

The USP that LTFH is endeavouring to create is a direct-to-channel journey, digitally simplified processes and a strong value proposition to the customer – through term loan and drop-line Overdraft (OD) assistance.

Wholesale Finance

The Wholesale business comprises Infrastructure Finance and Real Estate Finance.

LTFH is in the process of transforming itself into a retail finance company. This process of Retailisation is expected to be completed through a two-pronged approach of growing the Retail book as well as reducing the Wholesale book through accelerated sell-down.

During the year, the Wholesale Finance book (including De-focused) reduced from ? 43,257 crore to ? 19,840 crore, a 54% reduction y-o-y through a calibrated reduction of Infrastructure Finance and Real Estate Finance books.

Business Environment

Non-Banking Financial Companies (NBFCs) have been an integral part of Indias financial ecosystem, complementing the banking system in many ways. They provide a wide range of financial services like loans, credit facilities, investments and other financial offerings. NBFCs have played a significant role in the Indian economys growth and financial inclusion story, especially in the rural and semi-urban areas. One of the major factors that have contributed to the growth of NBFCs is the rising aspiration level amongst the masses which has translated into growing demand for credit in the Indian economy, across all categories. Another factor that has contributed to the growth of NBFCs is the Governments initiatives to promote financial inclusion. The Government has launched a number of schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY), Mudra Yojana and Stand-Up India to extend financial services to the unbanked and underbanked population.

As the economy revives post-pandemic, NBFC sector prospects have improved due to robust infrastructure spending by the Government, increased consumer spending, credit uptake in industrial and agriculture sectors and low transaction costs. Further, the rural segment is also thriving due to an increase in crop prices, healthy Rabi sowing season, strong water reservoir levels and reasonable export demand. Rising digital penetration in the country driven by FinTechs is also supporting the growth of NBFCs.

There have been some headwinds during the year due to aggressive rate hikes by the US Federal Reserve impacting the flow of foreign funds into the country. The financial conditions turned tighter during the second half of FY 2022-23 following monetary policy tightening by the RBI, which somewhat impacted the lending growth in the country. Liquidity in the banking system turned into a deficit intermittently due to transient factors like advance tax outflows, GST outflows, State Bond auctions, etc. However, the RBI injected liquidity through variable repo auctions with higher Government spending to protect the positive credit sentiment.

Major Achievements


LTFH launched – PLANET, a D2C app in March 2022. Within a year of its launch, PLANET crossed 30 lakh downloads, with over 2.8 lakh customers from the rural sector. LTFH sourced over ? 1,650 crore, collected more than ? 240 crore and serviced over 48 lakh customers during the year. The app is rated 4.5 (on a scale of 5) on the Google Play store.

The app aims to deepen customer engagement and features over 130 functions. It is evolving continuously and adding new features to provide a differentiated customer proposition.

Significant Initiatives

The business undertook the following strategic initiatives in FY 2022-23 towards fast-tracking Lakshya 2026 goals:

? Sale of Mutual Fund business

The Mutual Fund business was sold to HSBC AMC in Q3 FY 2022-23 for a total consideration of ? 4,249 crore.

? Accelerated pace of Retailisation

During the year, the Company increased the share of Retail from 51% to 75% and reduced the mix of Wholesale from 49% to 25%.

The Retail portfolio grew 35% during the year through growth led by flagship products – Farm Equipment Finance, Two-Wheeler Finance and Micro-Loans; high growth in mature products such as Home Loans as well as a pick-up in new products such as Consumer Loans and SME loans.

? Single Lending Entity Structure

In line with the ‘Right Structure strategy, LTFH, over the last 7 years, has merged 5 entities. This has led to a reduction in the number of lending entities from 7 to 2, i.e., L&T Finance Limited (LTF) and L&T Infra Credit Limited (LTICL), leading to simplification of the corporate structure along with enhanced governance and superior controls. It is now proposed to merge these subsidiary lending entities with the equity-listed holding company LTFH (subject to necessary statutory / regulatory approvals).

Risk Management Framework

LTFH has in place a Board-approved Enterprise-wide Risk Management Framework. This framework encompasses Risk Appetite Statement, Risk Limits Framework, Risk Dashboards and Early Warning Signals.

In addition to Enterprise-wide Risk Management Framework, the following emerging risks are being addressed in line with Lakshya 2026.

Credit Risk

A new-age portfolio management framework has been put in place as a part of the Lakshya 2026 journey. The focus is on strengthening the underwriting capabilities for existing as well as ‘New-To-Credit customers by investing further in building geo-agnostic underwriting capabilities and improving digital and analytical capabilities.

The business has a provisioning policy which is cautious, conservative and prudent in nature. As part of the strategy of insulating it from event-based risks, LTFH has built macro-prudential provisions to strengthen the balance sheet. As at March 31, 2023, the company carried ? 1,171 crore of macro-prudential and other additional non-GS3 provisions in the Retail segment.

Liquidity Risk

The Business maintains a positive liquidity gap on a cumulative basis in all the time buckets up to 1 year (at LTFH consolidated level). A Contingency Funding Plan has also been put into practice for responding to severe disruptions, which might affect the ability to fund activities in a timely manner and at a reasonable cost.

IT Risk

The Business is undergoing a digital transformation with cyber security being a key deliverable to ensure the continuity of business. Accordingly, the Business has put in place the necessary security measures to shield its systems and data against cyberattacks. In addition, a detailed security assessment of all internet-facing applications is also carried out on a regular basis.


Global growth is forecasted to slow down on account of sustained inflation in many economies, rising interest rates and negative global spillover effects from the war in Ukraine. India may see a slower GDP expansion in FY 2023-24 on the back of a likely slowdown in global economies, a high-interest rate environment amidst sustained inflationary pressures, subdued consumption demand and pressures on external balances.

Although there are a few definite positives for India such as sustained government capex, deleveraged corporates, low-stressed assets in the banking sector, Production-linked Incentive (PLI) schemes, etc., they are still not sufficient to take Indias GDP growth to near potential levels.

The Indian banking systems health continues to be at its best in decades. India Ratings expects the banking system credit growth to moderate to 13.5% (y-o-y) in FY 2023-24 from 15% in FY 2022-23. During FY 2023-24, bank credit growth would be driven by housing NBFCs catering to the credit needs in the services segment and large industry segment (especially working capital). However, loans to SMEs could pose risks to the banks asset quality because this segment is the most vulnerable to elevated interest rates.

The overall loan book of the NBFC sector could reach about

? 50 trillion by March 2024 (from ? 40 trillion as of March 2022), as per estimates by ICRA Ratings. Various rating agencies have pegged the NBFC sector growth between 12-16% for FY 2023-24. This growth would be largely driven by NBFCs who have access to capital and cost-of-funding advantage. Credit costs are likely to remain benign, but a higher borrowing cost would compress spreads for NBFCs in FY 2023-24. Near-term growth for NBFC retail book is expected to be driven by the unsecured segments comprising personal credit and micro-finance.

The business will continue to pursue its stated strategy of a customer-focused FinTech@Scale growth in the Retail lending sector.

Financial performance of the segment

The segments revenue improved by 5.0% y-o-y at

? 12,575 crore for FY 2022-23 due to higher disbursements on the back of the retailisation of book strategy. A revised business strategy is being implemented in line with the Lakshya 2026 strategic plan. The core strategy for the Financial Services business revolves around its transformation into a full-scale retail-oriented, digitally-enabled business. Several initiatives have been completed to exit the wholesale exposure, resulting in 75% of its loan book being retail credit as at March 31, 2023.

Disbursements of loans and advances at ? 46,975 crore for the year registered a growth of 26% on the y-o-y basis, reflective of a higher credit demand due to overall improvement in economic activity. The Loan Book stood at ? 80,893 crore as at March 31, 2023, registering a decline of 8% over the previous year, reflecting timely collections in Retail Finance, phased exit from Wholesale Finance and sell-downs to ARCs (in Wholesale Finance and de-focused book). The Net Interest Margin (NIM), including fee income, improved from 7.8% to 8.7%, mainly due to the increased share of the retail portfolio and higher fee income.

The Gross Non-Performing Asset (GNPA) ratio marginally moved up to 4.74% as at March 31, 2023, from 4.08% as at March 31, 2022. Net NPA ratio has improved to 1.51% as at March 31, 2023, against 1.98% as at March 31, 2022.

The Financial Services business has concluded the sale of the Mutual Fund business to HSBC AMC during the year.

The Development Projects segment comprises:

(a) Roads and Transmission projects developed through a joint venture company, L&T Infrastructure Development Projects Limited and its subsidiaries and associates (the L&T IDPL Group)

(b) The Hyderabad Metro Rail project, executed through a wholly owned subsidiary, L&T Metro Rail Hyderabad Limited

(c) Thermal Power Plant project executed through Nabha Power Limited, a subsidiary of L&T Power Development Limited

Financial performance of the segment

The segment recorded revenue of ? 5,029 crore for the year ended March 31, 2023, higher by 15.1% over the previous year. The growth in revenue is mainly on account of the higher Plant Load Factor (PLF) in Nabha Power Ltd. (NPL) with a pick-up in power demand in the state of Punjab. Further, an increase in the ridership on the Metro services in Hyderabad aided the growth in revenue of the segment.

The segment reported an operating profit of ? 715 crore for FY 2022-23, higher than the ? 100 crore reported in FY 2021-22. The increase is mainly on account of value restatement for NPL, largely reflective of the improvement in the realisable value of the asset on better performance and favourable settlement of litigation during the period.

The funds employed by the segment as at March 31, 2023, at ? 19,754 crore, was lower by 1.9% compared to March 31, 2022, mainly due to the annual amortisation of Hyderabad Metro assets.

During the year, the Company entered into a Share Purchase Agreement with Edelweiss Alternatives, to sell its entire shareholding in L&T Infrastructure Development Projects Limited. The sale transaction is subject to receipt of necessary approvals.

L&T Infrastructure Development Projects Limited (L&T IDPL)


L&T Infrastructure Development Projects Limited (L&T IDPL), a joint venture with CPP investments holding 49% equity stake, is a pioneer in the Public-Private-Partnership (PPP) model of infrastructure development in India. The Company has a long and successful history of working with the Union and various State Governments to develop infrastructure projects. Since its inception in 2001, the Company has developed landmark infrastructure projects across key sectors such as roads, bridges, transmission lines, ports, airports, water supply, renewable energy and urban infrastructure. It is one of Indias largest road developers as measured by lane kilometres constructed under concession agreements signed with Government authorities.

Currently, the Companys portfolio includes eight highways of 3,244 lane kms and a transmission line from Kudgi to Bidadi in Karnataka covering 490 km. For part of the year, till January 2023, it also managed 5 operational road assets on behalf of the Indinfravit Trust. This InvIT was sponsored and launched by the Company in 2018 as the first privately-placed InvIT in India. It has substantial holdings from leading international pension funds and insurance companies.

The Company has over two decades of extensive experience in working with governments, financial institutions and corporate entities. It has proven competencies in Viability Assessment, Financial Closure, Project Management, Operations & Maintenance and Portfolio Management of infrastructure assets across various sectors.

Business Environment

The operations witnessed a sharp pick-up in toll revenue of 22.3% over the previous year, reflecting the strength of the recovery in the Indian economy in the post-pandemic environment.

FASTag (Electronic Toll Collection) has been made mandatory with effect from February 15, 2021, for all vehicles plying on NHAI roads. Electronic Toll collection has rapidly picked up and, as a proportion of total toll collections on these roads, it is currently over 97%. This digitalisation has resulted in reduced cash handling and associated costs.

During the year, the Kudgi Transmission line achieved availability of 99.99%, thereby qualifying for incentive payments over and above the base transmission tariff.

In March 2023, NHAI released the final settlement dues of M/s Chennai Tada Tollways Limited, signifying the end of the legal process launched following the termination of the concession in 2015 and the proceeds are being utilised to settle dues of the project lenders.

One of the SPVs of the Company, L&T Halol Shamlaji Tollway Limited, had been admitted to the Corporate Insolvency Resolution Process. During the year, this project was transferred to a third party through a process driven by the NCLT and L&T IDPL has been fully discharged from all debts and liabilities of this company.

Major Achievements

L&T IDPL became a zero-debt Company during FY 2021-22 and has complied with all procedural submissions in this regard. Consequent to that, the Company applied to RBI for surrendering its NBFC CIC registration. Considering the Companys status and its compliance, RBI has granted its approval and now L&T IDPL is an unregistered CIC.

Divestment Process

Both the shareholders of L&T IDPL (L&T and CPP

Investments) have entered into a Share Purchase Agreement dated December 16, 2022, with M/s Edelweiss Alternatives to sell their entire 100% shareholding in L&T IDPL. The transaction is subject to completion of customary closing conditions, including receipt of applicable regulatory and other approvals.

L&T Metro Rail (Hyderabad) Limited


L&T Metro Rail (Hyderabad) Limited (L&T MRHL) is a special purpose vehicle (SPV) created to undertake the business of constructing, operating and maintaining a Metro Rail System including Transit Oriented Development (TOD) in Hyderabad on a Design, Build, Finance, Operate and Transfer (DBFOT) basis. The remaining concession period is approximately 49 years, with further extensions available as per the conditions set out in the Concession Agreement signed with the Government of Telangana.

The Metro Rail system consists of three elevated corridors from Miyapur to L.B. Nagar, Jubilee Bus Station to Mahatma Gandhi Bus Station and Nagole to Raidurg, covering a total route length of 69.2 km. The metro rail system was commissioned in phases, with the final stretch being put into commercial operation in February 2020.

The Concession Agreement also includes rights for real estate development in the form of Transit Oriented Development (TOD) rights for 18.5 million sq. ft. (strategically located land parcels interspersed at prime city locations, adjoining Metro stations and corridors), of which 1.80 million sq. ft. consisting of 4 malls and an office block have commenced commercial operations. Future developments could encompass Grade A commercial developments for IT / ITES offices, Healthcare, Retail and Hospitality. Newer business models of upfronting revenues from transit-oriented development are being worked upon with all the stakeholders involved.

Business Environment

The FY 2022-23 began with the easing of the COVID-19 situation which aided improvement in mobility. Since metro services are one of the preferred modes of transport, this benefitted the SPV in the form of increased ridership. The average daily ridership in FY 2022-23 was 361,000 as against 155,000 in FY 2021-22. This significant jump in ridership at Hyderabad Metro is the best post-COVID recovery amongst all the Indian metro rail projects.

Higher petrol and diesel prices encouraged commuters to use public transport rather than their own vehicles, which further favoured Metro ridership. The partial resumption of work-from-office at large IT companies and in-person academic sessions in colleges and universities also aided the recovery in ridership during FY 2022-23.

The business undertook various initiatives to further boost ridership, viz., promotional schemes, extended operating hours during festival days, helpdesk kiosks at major IT parks, etc. During the year, the business entered into an MoU with Telangana State Road Transport Corporation (TSRTC) for improving the last-mile connectivity feeder service for its customers.

With the recovery in retail business operations, the occupancy levels in TOD malls saw improvement during the year.

Major Achievements

QR ticketing (Digital & Paper) introduced by L&T MRHL is already making travel contactless, easy and hassle-free for commuters. L&T MRHL has become Indias first metro rail to roll out a WhatsApp-based e-ticketing System.

Over the last 12-18 months, the business repositioned 2 of its retail malls, viz., ‘Erramanzil Mall as a Premium Mall and ‘HITEC City Mall as an Electronic & Entertainment destination, which is expected to accrue benefits in the long term.

The business has activated newer media, viz., audio advertisements, station exteriors and viaduct parapet branding during the year.

Manpower optimisation by using a digital Asset Management System and benchmarking with other Metros have resulted in a 20% reduction in Operations & Maintenance staff deployment.

Significant Initiatives

L&T MRHL has successfully submitted the application to Global Carbon Council (GCC) during the year for monetising the carbon credits generated from the project.

The business is exploring additional non-fare revenue opportunities through various measures such as consultancy services for other metros, leasing out the Rail Grinding Machine to other metros, royalty from QR and open-loop ticketing partners, tie-ups with cab aggregators, leasing out space for setting up EV charging stations, etc.

With a view to enhance its green footprint, further capacity expansion of its solar power generation is under implementation.

Driving towards digitalisation, L&T MRHL has implemented business intelligence tools like Alteryx and Tableau, for both business and passenger data analysis / interpretation, which will improve the managements decision-making capabilities.


The improvement in ridership during the FY 2022-23 is likely to sustain in FY 2023-24 as well. Increased focus of corporates towards the work-from-office model coupled with improved hiring is expected to enhance ridership.

Measures such as fare system integration with other transport modes and collaborations with various feeder services for first and last mile connectivity are expected to strengthen the fare revenue. In addition, new non-fare revenue initiatives in optic-fibre cable leasing, mobile towers, tie-ups with cab aggregators etc., can add to revenues for the business.

The business is working towards introducing the open-loop ticketing system which will make it more convenient for commuters to make digital payments. The business is also planning to add exclusive shuttle services from metro stations to corporate offices through innovative partnership models and enhance its partnership with Telangana State Road Transport Corporation (TSRTC) for feeder services and other route optimisations. Further, flexible ticket pricing is also expected to catalyse increased occupancy over time.

Post the recovery in retail segments witnessed during FY 2022-23, the business expects the momentum to continue. A new business model for upfronting revenues from Transit Oriented Development is under progress, with the monetization activities expected to pick up pace in FY 2023-24.

Hyderabad Metro Rail is seen as an environment-friendly, safe, clean and sustainable mode of transport with best practices adopted by L&T MRHL. With the Government planning to implement Phase II of the Metro project, it will significantly enhance the average ridership of the metro network in the medium to long term.

Nabha Power Limited


Nabha Power Limited (NPL) owns and operates a 2 X 700 MW supercritical thermal power plant at Rajpura, Punjab. All the power generated from this plant is sold to Punjab State Power Corporation Limited (PSPCL) under a 25-year Power Purchase Agreement (PPA) which is effective till the year 2039.

The plant sources its fuel from South-Eastern Coalfields Ltd. (SECL) and Northern Coalfields Ltd. (NCL), subsidiaries of Coal India Limited, under a 20-year Fuel Supply Agreement (FSA). The FSAs are for a total annual contracted quantity of 52.4 Lakh MT. The Company has secured approvals to arrange for coal from alternative sources to make up for any shortfall in the supply of coal under the FSA. The Bhakra-Nangal distributary is a perennial source of water for the plant under an allocation from the State Government. The plant is operated by an in-house team of experienced operations and maintenance professionals.

The power plant has been running successfully for over nine years with an availability of over 85%. The plant has been the most reliable source of power for the State of Punjab and has supported its requirements with uninterrupted supply during peak season. NPL also happens to be the lowest-cost coal-based power producer within Punjab, with the best operational efficiency.

Business Environment

Indias average electricity demand has gone up significantly by ~10% in FY 2022-23 (y-o-y) due to higher economic activity and an increase in industrial and residential power consumption. During the year, the electricity demand in Punjab rose substantially on account of higher-than-usual temperatures and an increase in domestic consumption. The average demand has been higher by 11.70% (7983 MW) compared to last year (7147 MW).

The annual Plant Load Factor (PLF) of NPL stood at 85%, the highest in the operational history of NPL and the plant also achieved 21% higher PLF than the national average for FY 2022-23. Of the total power demand of Punjab state, 14% was met by NPL.

With a surge in power demand across India, the requirement for coal also went up during the summer months. To meet the increased demand, all thermal plants in India were directed by the Ministry of Power (MoP) to blend imported coal up to 10% of their total requirement from April-September 2022.

Despite all the challenges, NPL made every possible effort to secure coal from various CIL subsidiaries, e-auction coal and imported coal, which ensured adequate coal supply, resulting in uninterrupted power supply at an affordable cost to the state of Punjab during the year.

Major Achievements

? Annual PLF: 85% v/s all India thermal average: 64%, highest ever in the history of NPL. Annual Plant Availability Factor (PAF): 91% (~100% during paddy season) ? Highest continuous operation:

? Unit days achieved: Unit II, 331 days (Previous best 183 days)

? Station days achieved: 179 days (Previous best 126 days) ? Annual Overhaul of both units carried out, resulting in improved operational efficiency


In FY 2023-24, the average power demand in Punjab is expected to remain around 9,000 MW (Peak 15,000 MW) and as a result, NPL is expected to schedule a high PLF of 86% and remain at the top of the merit order among the thermal power producers within the state.

The overall power demand for the country is expected to stay high during the financial year and is expected to peak around June – July 2023 (~235 GW). On the fuel side, coal supply may continue to pose challenges. Anticipating the high demand, the MoP has already issued notification for mandatory 6% blending of imported coal for H1 FY 2023-24 for all thermal power plants.

The Ministry of Environment, Forest and Climate Change (MoEF&CC) has issued Draft Agro Residue Utilisation by thermal power plants (TPPs) Rules, 2023 on proposed mandatory co-firing of crop residue pellets with coal in TPPs in NCR and adjoining areas. However, regulatory and commercial clarity on this aspect is yet to emerge.

NPL expects to commission Flue Gas Desulphurisation (FGD) for both units during FY 2023-24, thereby complying with the new environmental norms, ahead of the mandated deadline.

Major focus areas for NPL during the year would be HSE compliance, maximising plant availability, improving operational efficiency, commissioning of FGD, securing adequate and the right coal, resolution of long pending litigations and digitalisation initiatives to improve efficiency.

‘Others segment comprises:

(a) Realty Business

(b) Industrial Machinery, Products & Others comprising of Construction & Mining Equipment, Rubber Processing Machinery and Industrial Valves

(c) Smart World & Communication

Financial performance of the segment

Revenue for the segment registered a growth of 12.9%, from ? 6,262 crore in FY 2021-22 to ? 7,072 crore in FY 2022-23. The growth was largely in the Realty business on higher handover of flats and sale of commercial property. Additionally, there was an improvement in the demand for Construction Equipment and Rubber Processing Machinery. An extended conversion cycle and delayed client clearances impacted the Valves business, whereas execution headwinds and a depleting Order Book impacted revenues of the Smart World & Communication business.

The operating margin for FY 2022-23 declined to 18.1% from 18.6% for the previous year, mainly reflective of the inflationary pressures in the construction equipment business.

The funds employed by the segment as at March 31, 2023, at ? 8,122 crore, remained largely around the same levels as in the previous year.

Realty Business


L&T Realty is positioned amongst the top real estate developers in India, with a development potential of 62 million sq. ft. across residential, commercial and retail segments in Mumbai, Bengaluru, NCR and Chennai. The business model includes development of own land as well as in partnership with land / development right owners as well as the sale and leasing of commercial spaces.

Residential Segment

1. Emerald Isle, Mumbai

This flagship residential project in Powai is spread over 90 acres and developed in phases. During the year, a tower was handed over to customers within the committed timelines. Regarded as one of the finest gated communities, the project today has a lively community of over 1,300 resident families.

2. Elixir Reserve, Mumbai

A premium residential project in Powai, Elixir Reserve is nestled in a picturesque setting. This project is replete with state-of-the-art amenities, including an ICSE school, commercial office and retail spaces within close proximity.

3. Crescent Bay, Mumbai

With the Arabian Sea as the backdrop, Crescent Bay is a six-tower residential complex at Parel with the perfect setting for an exclusive lifestyle. The highlight of this project is a sky deck and other lifestyle amenities on level 21. The project is completed and has been occupied by over 1,300 families.

4. Seawoods Residences, Navi Mumbai

Part of Indias first Transit-Oriented Mixed-Use Development, the Seawoods Development is spread across over 40 acres. Seawoods Residences offers unmatched connectivity and and breath-taking views of the surrounding area. The project has garnered sufficient interest from consumers. A new phase, i.e., West Square, was launched in the current financial year and was able to bring in new customers to the larger resident family, thereby cementing L&Ts name in the Navi Mumbai region.

5. Rejuve 360, Mumbai

Designed on the principles of wellness, this residential complex is focused on the theme of rejuvenation of mind, body and soul. Conveniently located in Mulund West, the project has sustained its position among premium developments in the micro-market.

6. 77 Crossroads, Mumbai

This gated community, situated at Ghatkopar offers functional residences with unmatched comforts and conveniences. The location provides easy access to every corner of the city.

7. Raintree Boulevard, Bengaluru

Conceptualised on the live-work-play theme, Raintree Boulevard is a 65-acre Mixed-use Development project located in the high-growth micro-market of Hebbal. Situated just 20 mins away from the airport, the project offers fine living and best-in-class amenities. L&T Tech Park and a large format mall are within walking distance from the project.

Commercial Segment

1. Seawoods Grand Central, Navi Mumbai

The Seawoods Grand Central offers 2.6 million sq. ft. of Grade A development with a unique combination of commercial and retail business spaces.

2. Commercial Towers, Mumbai

Designed to provide superior workspaces, it is part of a larger integrated development promoting the walk to work concept. It is one of the coveted corporate addresses in Powai, Mumbai, with proximity to excellent social infrastructure. Much of this development is already completed and some sections have been effectively divested.

3. L&T Technology Park, Bengaluru

Located in the rapidly growing micro-market of Hebbal, the project has the potential for the development of 3.4 million sq. ft commercial office spaces. Tech Park-1, i.e., Phase 1 of the office spaces having an area of 1.2 million sq. ft. is completed. With unmatched connectivity and well-designed spaces, this project is set to become the most favoured address for many technology companies.

4. L&T Innovation Campus, Chennai

The 6.5 million sq. ft. L&T Innovation Campus project is under a phase-wise development on a 40-acre plot in the IT hub of Chennai. It will bring together world-class innovation business / IT hub and an eclectic mix of leisure and lifestyle amenities, with a lush central parkland at its core. The development offers the convenience of ‘walk-to-work.

New Growth Opportunities


L&T Realty and Housing Development Finance Corporations (HDFC) real estate arm, HDFC Capital Advisors have entered into an agreement to set up a residential development and investment platform. The joint platform shall be structured as an Alternative Investment Fund (AIF) and will invest in mid-market residential projects. Both L&T Realty and HDFC Capital Advisors will make sponsorship investments into this platform and L&T Realty will be responsible for the execution of the projects.


L&T Realty and the Singapore-listed CapitaLand India Trust Management Pvt. Ltd., trustee-manager of CapitaLand India Trust (CLINT) have entered into an agreement for a commercial platform to develop ~ 6 million sq. ft. of prime office spaces across Bengaluru, Chennai and Mumbai.

Under this platform, L&T will build and develop office spaces, while CLINT will market the office spaces. CLINT will gradually acquire the ownership of these properties in a phased manner from FY 2024-25 onwards.

Business Environment

The housing market witnessed a strong recovery at the start of the FY 2022-23 and sustained the momentum with housing sales exceeding pre-COVID levels.

Despite the rising mortgage rates and property prices, the year witnessed robust demand with residential sales registering a decadal-high double-digit growth on the back of positive consumer sentiments.

The growth was primarily driven by mid-end and luxury segments, which continued to be a major focus area for developers. Varied new launches also gained prominence amongst consumers.

The sales growth momentum resulted in the reduction of inventory overhang across top-tier cities. Residential real estate developers endeavour to cushion the rise in construction costs, resulting in price hikes across multiple projects.

The IT / ITeS sector continued to drive demand for commercial leasing. Aided by a strong earnings growth and return-to-office trend, the BFSI sector registered a healthy increase in its share of overall office leasing activities. Improvement in net absorption alongside steady demand led to an appreciation in lease rentals.

Consolidation in the real estate market is expected in favour of branded Tier-I developers, basis lack of consumer confidence and restrained capital access for unbranded developers.

Though the resurgence of the virus in some form could dampen consumer confidence, the chances of the same impacting growth remain slim.

Major Achievements

? Launched a new phase ‘West Square in the premium Seawoods - Navi Mumbai project ? Relaunch of Centrona Project as ‘77 Crossroads at Ghatkopar

? Completed Commercial Office spaces:

? Tech Park - 1 at Bengaluru with an area of 1.2 million. sq. ft.

? Module X at Mysuru with an area of 0.4 million sq. ft.


The strong sales momentum witnessed in FY 2022-23 is likely to sustain during FY 2023-24 as well. Changing demographics, viz., rapid urbanisation, family nuclearisation, rising income levels and renewed need for home ownership post-COVID are expected to drive growth in the residential real estate market.

Homebuyers preferences for bigger homes, large-gated communities, better amenities and attractive pricing will sustain the demand for premium housing.

The buoyant retail inflation, which has an adverse effect on the disposable income of consumers, may have a modest impact in the short term.

In the Commercial segment, emerging markets, viz., Data Centers, Industrial Parks and Flex Spaces (a hybrid of industrial and office spaces) are gaining traction and are likely to have strong growth.

Environment, Sustainability and Governance are the key variables for achieving success in the Indian real estate industry. Transparency and stakeholder interaction are becoming increasingly important. Such growing awareness places developers like L&T Realty in a favourable position.

L&T Valves Limited


L&T Valves (LTVL) is a leading manufacturer of industrial valves with a global customer footprint. The business leverages sixty years of manufacturing excellence to serve key sectors such as oil and gas, defence, nuclear & aerospace, power, petrochemicals, chemicals, water and pharmaceuticals across the world. LTVL manufactures a wide range of products such as Gate, Globe, Check, Ball, Butterfly, Double block bleed valves and automation solutions. With a large installed base across countries, L&T Valves also runs a global after-market business to support its customers with service and spares.

The valves are designed by specialists with a deep understanding of various industry requirements, standards and practices, using state-of-the-art design and analysis software. The Company has a series of successful innovations to its credit, including mission-critical solutions for the defence and aerospace industries.

LTVL has a global manufacturing presence with a state-of-the-art facility in Tamil Nadu, India and two facilities set up in the USA and Saudi Arabia. In addition, the business has its own engineering department and a research and development centre, staffed with a highly motivated and technically empowered team. LTVLs products demonstrate safety, reliability and quality for diverse industries.

Business Environment

With COVID retreating, the business witnessed a steady recovery during the year FY 2022-23, despite the continuing challenges emanating from the Russia-Ukraine conflict and the consequent supply chain and economic disruptions. There is also an increasing trend of localisation in many countries and protectionist policies being pursued in the US and GCC.

Investments continued in the International and Indian markets in the Oil & Gas sector, which led to improved demand for valves. Investment proposals to create fresh production capacities in the private sector, particularly in the paints, pharma and chemical sectors have further provided a boost to the Indian valves market.

The industrial valves market is a highly fragmented one, with elevated levels of competitive intensity. At the same time, the business landscape has witnessed consolidation through mergers and acquisitions, as companies look to gain scale and compete better in the global marketplace.

Major Achievements

Orders received:

The major orders received during the financial year are:

? Aramco Zuluf Arab Heavy Development Programme from Bin Quraya ? Marjan and Berri project from Saipem ? Jafurah Gas Processing Facilities project from Samsung and Hyundai ? Aramco CRPO 82&83 from National Petroleum Construction Company

Major product developments:

During the year, LTVL has successfully developed and supplied complex engineering products to meet customers requirements:

? Largest Butterfly valves for refineries ? HIPPS for Propylene Recovery Unit ? Zero emission valves for Sodium ? Largest valve for a supercritical power plant

? Exotic grade material valves for extreme environments ? Carbon Graphite Ball valves for severe service applications

Approvals / Certifications

The business made significant efforts to improve its approvals and certifications and gained fresh approvals in the following areas to enhance its sustainability and customer base.

? Received ISO 30414:2018 certification – Human Capital Reporting from Bureau Veritas ? Received Monogram License for API 600, API 594 & API 6D for Saudi Arabia plant ? Received facility approval from various organisations like Air products, EDF, EIL, Thermax, AVA alms, Vogt power and Samsung

Significant Initiatives

The business continued its emphasis on strategic initiatives in key areas.

? Integrate all-India manufacturing operations at the

Kancheepuram plant from April 01, 2023. It will enable the business to consolidate operations, reduce costs and focus resources on core business areas ? Setting up a new office in Paris to support the Europe region and working on placing Business Development Managers in Singapore to support the APAC region. LTVL has also expanded its distributor network in International and Indian markets ? Develop digital solutions that enhance automation, reliability and efficiency of processes


Key demand indicators such as crude oil prices, capacity additions, liquidity, project capex spending and GDP trends in the relevant geographies are being closely monitored by the business.

In the international segment, the transition to clean and low-carbon energy is a key trend that drives the scale of trade in the global LNG market to grow continuously. It is expected that the investment in renewables projects, petrochemicals and LNG sectors may continue to see an uptrend. The business expects continued higher investments in upstream and midstream projects in MEA and APAC regions. Huge investments are also planned in desalination plants in Saudi Arabia and UAE. In the Indian market, the outlook is positive in water treatment, speciality chemicals, iron & steel and fertiliser plants. Major investments are being carried out by both PSUs and private players.

With the revival of oil prices, buoyancy in the non-oil sectors like water, pharma, speciality chemicals and focused actions taken by LTVL, the outlook of the business remains positive. Despite the current geopolitical headwinds, the market share gain through a diverse portfolio of products and industries and initiatives focusing on geographical expansion, supply chain resilience, digitalisation, operational excellence and a strengthened aftermarket team would help the business build a strong Order Book in the coming year and deliver the highest level of customer satisfaction.

Construction Equipment & Others


The Construction Equipment & Others (CE&O) business includes the manufacture and marketing of construction & mining equipment and machinery for the tyre manufacturing industry, broadly segregated into Construction & Mining Machinery (CMM) and Rubber Processing Machinery (RPM). CMM further comprises Construction & Mining Equipment business unit (CMB) and L&T Construction Equipment Limited (LTCEL), a wholly-owned subsidiary of L&T.

The CMM division is engaged in the business of distribution and after-sales support for hydraulic excavators and dump trucks manufactured by Komatsu India Private Limited (KIPL) and other mining and construction equipment manufactured by Komatsu worldwide. It also handles the distribution and after-sales support for a range of construction equipment including wheel loaders, vibratory compactors and hydraulic excavators manufactured by LTCEL and Mining Tipper Trucks manufactured by Scania India. In addition, the division handles the distribution and after-sales support for the mining equipment manufactured by L&Ts Minerals & Metals business, viz., surface miners, sand plants, crushing solutions and apron feeders.

LTCEL, located in Doddaballapura, near Bengaluru, Karnataka manufactures vibratory compactors, wheel loaders, hydraulic excavators, asphalt paver finishers, pneumatic tyred rollers, skid steer loaders, hydraulic power packs, cylinders, pumps, motors and other components. During the year, LTCEL played a significant role in the design, development, manufacture and supply of Track-Slab Laying Cars and Rail Feeder Cars for Indias High-Speed Rail project being executed by L&T.

The RPM business, located in Kancheepuram near Chennai, is engaged in building rubber processing machines and tyre automation systems for the global tyre industry and has supplied equipment to various tyre majors in over 46 countries across the globe. The division also supports certain customers in the tyre industry with ‘build to print products and customised machinery as well.

The Product Development Centre (PDC), based in Coimbatore, with its highly-skilled design team, renders engineering and product development support for CMM and RPM businesses.

Business Environment

Construction & Mining Machinery Business (CMM)

Investment in the construction and mining sectors is one of the key demand drivers of the CMM business. In FY 2022-23, the Governments thrust on the infrastructure sector continued unabated, which is reflected in the enhanced budgetary allocation for highway construction activity. However, a prolonged monsoon and state elections disrupted this momentum somewhat and resulted in below-par road levels during the year.

In the mining sector, coal and iron ore production registered a growth of ~ 5-6% over the previous year. With the intent of ramping up the domestic coal production capacity for reducing import dependency, the Ministry of Coal has floated nine greenfield projects which are expected to drive growth in mining activity. Further, installed capacities in cement increased from 530 MT to 560 MT with overall production moving higher to 390 MT in FY 2022-23. The market demand for premium excavators and wheel loaders grew by 3% and 11% respectively, whereas the demand for vibratory compactors dropped by 10% in FY 2022-23.

The business team cultivated awareness amongst its customers to evaluate the equipments benefits across its entire life cycle, which in a way helped to offset stiff competition from Chinese mining equipment manufacturers, especially in dump truck, tipper and wheel loader segments.

Rubber Processing Machinery Business (RPM)

The demand for the Rubber Processing Machinery manufactured by this division depends on capital investment by the tyre majors, which is in turn linked to the fortunes of the Automobile, Agricultural and Mining sectors.

Technological shifts, changes in consumer behaviour and disruptions in the global supply chain have led many automobile manufacturers to use innovation and technology to meet these emerging challenges.

A good recovery in demand was witnessed across the different segments throughout the year. Business sentiments remained favourable for the majority of automotive segments, viz., passenger vehicles, commercial vehicles and tractors, thereby aiding improved offtake for the industry players. In the Truck Bus Market, there was a strong demand led by fleet upgrades and dynamic freight activity management.

Although the softening of raw material prices has resulted in slightly improved margins for the tyre majors, the headwinds in the form of supply chain disruptions still continue.

The rising demand for Electric Vehicles (EVs) is being keenly watched. Further, sales of automobiles on digital platforms, integration of wireless technology in cars and the entry of connected and auto-pilot-enabled vehicles in the market are expected to fuel the growth of the automobile industry in the medium term.

As per ATMA (Automotive Tyre Manufacturers

Association), the Indian tyre industry recorded a double-digit increase in exports for two consecutive years despite recessionary trends in the key export markets.

Major Achievements

Construction & Mining Machinery Business (CMM)

? Won major order from Tata Steel for the supply of mining equipment along with parts support arrangement for 10 years ? Supply of 2,000th L&T Wheel Loader and 3,000th L&T Compactor from LTCEL ? Highest ever dozer sales of 150 machines in a year ? 100th Surface Miner and 50th Sand Plant supplied by L&T Minerals & Metals business ? Worlds first Slag to Sand Plant commissioned at JSW Steel

Rubber Processing Machinery Business (RPM)

? The year 2022 marked the 50th anniversary of the business ? Received the largest international order from a Japanese tyre major in the USA

? Received the European patent for the design of compact post-curing inflator for the new generation passenger car hydraulic curing press ? First ever delivery of HCP to the USA by the business

Product Development Centre (PDC)

? PDC along with LTCEL designed and developed Rail Feeder Car and Track Slab Laying Car for L&T High-Speed Rail project

? PDC along with LTCEL designed and developed 23.5 m reach Super Long Front Attachment for 65-tonne class hydraulic excavator ? Developed cold starting kit for wheel loaders for high altitude application ? PDC along with RPM worked on several new development and improvement projects related to tyre industry requirements, such as sub-systems for 52" Hydraulic Tyre Curing Press, 1st stage Tyre Building Machine (TBM) Servicer and 2nd stage Servicer for tyre-building application

Significant Initiatives

Construction & Mining Machinery Business (CMM)

? Introduction of Long-term Repair Warranty of 3 years / 6,000 hours and 2 years / 10,000 hours with support from Komatsu for construction and mining equipment ? Improvement to the new variant PC205-10M0 20-tonne fuel-efficient hydraulic excavator that caters to the general construction and equipment hiring segment ? Collaborating with Komatsu India to increase the local content in their 60-tonnes and 100-tonne dump trucks ? Introduction of Equipment Performance System in mining equipment to help customers monitor their entire fleet performance on a daily basis ? Developed tool to assimilate dump truck payload data

Rubber Processing Machinery Business (RPM)

? Evolved 20 Design Projects through Technology Centre initiatives and implemented six initiatives for design improvements ? Construction of new Bay 6 has been successfully completed (2,000 sq. mt.) towards capacity expansion for Hydraulic Press Assembly ? Created one fabrication facility adjacent to the plant, to cater to 100 MT / month of fabrication load for addressing the shortfall in in-house capacity ? Successfully implemented modular assembly and testing methodology for Mechanical Tyre Curing Press (MTCPs)


Construction & Mining Machinery Business (CMM)

With the Governments continued focus on investments in transportation infrastructure, the construction equipment market is expected to grow by around 10% in the coming year. The development of roads, railways, irrigation, ports, urban and rural infra, affordable housing, etc., will drive demand for cement and metals, which in turn will boost demand for excavators, dump trucks, dozers and other road construction and mining equipment. With ~65% of the demand for mining equipment coming from coal PSUs, the business is planning to target selective tenders along with Komatsu.

In the Parts and Services segment, the business plans to capture a higher market share by providing long-term service contracts and structural warranty on major parts to its customers.

Rubber Processing Machinery Business (RPM)

The global tyre demand is expected to be robust and tyre companies are poised for investments in select segments. According to the automotive dealers body, the Federation of Automotive Dealers Association (FADA), the passenger vehicle companies are sitting on large Order Books and will continue to perform in FY 2023-24 as well.

With fresh capacity addition and improving production, the domestic tyre industry is hoping to generate an incremental turnover of USD 3 billion or ? 25,000 crore in the next three years and cross a turnover of ? 1 trillion. Also, phasing out of the old vehicles will create demand for new vehicles, benefitting a host of associated sectors, including the tyre industry.

The expectations of a normal monsoon, a good harvest and a pickup in rural demand augur well for growth in tractor sales during the year.

The business has a great advantage as compared to the European competitors, due to its wide product range across all segments it is also market leader in tyre-curing presses for Off-the-road in the Agriculture and Mining sectors.

Smart World & Communication


Smart World & Communication (SWC) is a leading systems integrator and globally connected intelligence and smart solutions provider using Artificial Intelligence to deliver outcome-based solutions. The business, with its unique engineering expertise, domain knowledge, global partnerships and excellent track record of solutions, provides best-in-class customised security, connectivity and smart solutions to solve the most complex challenges of enterprises and State and Central Government bodies across various domains in the realm of physical-digital convergence.

The solutions and services provided by SWC are an integral part of the operations of enterprises, industries and Government bodies, and even touch the citizens lives. Building on the experience gathered across the years, the business provides solutions and services for better connectivity, better analytics and insights and digital security. With the experience of having executed various projects, complemented by the technology expertise developed across various domains and robust IT set-up (Network Operation Centre, Security Operation Centre, Smart Meter Operation Centre, 5G Lab, etc.), the business has started to position itself as a solutions and services organisation at a global level.

The business was incubated with a vision for a safe, smart and digital India, leveraging the latest technological innovations and operates in well-defined business segments- Safe and Smart Infrastructure, Communication and Telecom Infrastructure and Military Communication.

Safe and Smart Infrastructure – Systems and solutions for Safe Cities, Smart Cities, Public Safety, Critical Infra Security, Traffic Management Solutions, Integrated Command Control Centres, Advanced Metering Solutions and Smart Utilities including Prepaid Billing solutions.

Communication and Telecom Infrastructure – Systems and solutions for Network Design, Engineering and Roll-outs, Network Migration and Upgradation, Next-Gen Data Centers, Private Cloud, Cyber Security with a focus on IT / OT Security, Cloud Security, LTE, Virtualised Network Technologies, 4G / 5G, TETRA, Security Operation Centres and Network Operation Centres.

Military Communication – Systems and solutions for Satcom and Ground stations, Radio Comm. Systems (HF, VHF and UHF), Tactical Communication, Software Defined Radios, Electronic Warfare, Vessel Traffic and Coastal Surveillance.

Business Environment

Rapid urbanisation, driven by the adoption of smart technology and smart solutions and the increased focus on public safety and security, continues to be the primary focus area of the Government.

In the Energy sector, countries across the globe are targeting to improve efficiencies through energy data analytics, which has given a fillip to the Advanced Metering Solutions opportunities. The Smart Meter National Programme aims to replace 250 million conventional meters with smart meters in India, providing the opportunity landscape.

With the launch of 5G in India and the pilot roll-outs of private LTE (Long-Term Evolution), the NextGen communication sector is poised to bring across multiple opportunities. The advantages in terms of coverage, efficiency improvements like Industry 4.0 and security brought forth by these communication technology evolutions, are being actively adopted across the globe. With a rapid expansion of the Metro Rail Network across India and with data being regarded as the new oil, Data Center / Cloud, Data Analytics and Cyber Security domains are experiencing a dynamic shift and a huge upsurge in demand, thereby providing a plethora of prospects.

With a wide range of competencies such as Network, Telecom, DC and Cloud, IoT, Cyber Security, Solution Architecture, Software Programming, Data Science, etc., and leveraging disruptive technologies such as Artificial Intelligence, Machine Learning, 5G etc., the business today has positioned itself as a global solutions and services provider that solves problems through customised, scalable, digital and smart solutions.

With some delays in the take-off of Bharatnet and Smart Meter National Programmes and Smart City Mission, the business saw traction in Metro Communication, Cyber Defence, ITMS and Nextgen Communication for enterprises during the latter half of the year. The business was marginally affected in terms of work-front clearance and logistical issues due to geopolitical situations and the global shortage of semiconductor chips.

Major Achievements

? Successfully demonstrated 5G use-cases at India Mobile Congress 2022 in the Smart AgroW, Connected Healthcare, 5G-enabled Smart Surveillance domains ? Rolled out the first commercial private LTE at L&Ts AMN Naik Heavy Engineering Complex, Hazira with deployment of 11 industry-specific use-cases

? Created state-of-the-art 5G Lab at Technology Innovation Centre, Chennai ? Empanelled as a member in Rural Electrification Corporation (REC) and / Central Power Research Institute (CPRI) agency for in-house Smart Meter Advanced Metering Infrastructure Solutions

Projects commissioned:

? Implemented the telecom system in Gujarat Metro and Nagpur Metro projects ? Moradabad Smart City Integrated Command Control Centre was inaugurated by the Honble Chief Minister of Uttar Pradesh ? Hyderabad City Surveillance project for Telangana State Polices Integrated Command and Control Centre ? Go-Live of Phase-2 of Prayagraj Smart City project ? Completion of Milcom Integrated Test Range project ahead of schedule

Business Transfer to LTTS

In FY 2022-23, L&T entered into a Business Transfer Agreement (BTA) to transfer a portion of Smart World & Communication business (excluding Military Communication) to L&T Technology Services Limited (LTTS). SWCs expertise in communication, envisioning and creating smart-cum-safe cities and prowess in cyber security services and 5G enterprise solutions, offers ideal synergies to LTTS in 3 of the 6 big bets they are placing in the future namely 5G, Sustainability and Digital Products. Consequent to the satisfaction of conditions precedent set forth in the BTA, the transfer was completed on April 01, 2023.


The Information Technology (IT) function of L&T has continuously evolved to keep pace with the changing technology landscape and address the emerging needs of our clients across industries. With a focus on innovation, digital transformation and leveraging advanced technologies, the Groups IT function has positioned itself at the forefront of the industry.

Operational Performance and Key Initiatives

During the financial year 2022-23, L&Ts IT function has recognised the advancements in AI and its applications in driving business process improvements, leading to increased efficiency and productivity. The IT function has also implemented a value measurement and tracking framework for evaluating and implementing various IT initiatives.

Improving Compliances: In response to the growing need for robust compliance frameworks, the IT function has invested in systems that strengthen the compliance framework for exports by enabling IT-enabled processes. These investments help ensure adherence to international trade regulations and reduce potential risks associated with cross-border transactions.

Intelligent Process Automation (IPA): At L&T, the IT function has reimagined business processes through the adoption of intelligent process automation, enhancing efficiency and streamlining operations across the organisation.

Generative AI in Knowledge Management: The IT function at L&T will explore the potential of Generative AI for Knowledge Management, focusing on harnessing its capabilities to aggregate historical EPC projects execution learning, enabling new joiners to onboard quickly and become productive by providing them with relevant project execution insights.

Cybersecurity: As geopolitical tensions rise and cyberattacks on critical business infrastructure become more frequent, the IT function has taken significant steps to protect the organisation from potential threats. A comprehensive roadmap and metrics to measure cyber maturity across people, processes and technology has been developed to strengthen the organisations overall cybersecurity position.

Awards: To motivate the IT workforce and foster a culture of excellence in the organisation amidst high attrition, the Company has introduced IT Awards that recognise outstanding contributions and achievements.

Outlook and Investments

At L&T, the IT function remains committed to driving innovation and ensuring the highest standards of security and efficiency. Key areas of focus for future investments include:

? In anticipation of changes in regulatory environments, such as the introduction of CERT (Computer Emergency Response Team) and data privacy laws, the Company will invest in compliance efforts to adapt to new regulations seamlessly ? Innovative use of Generative AI in various facets of the business are being explored ? Exploring new ideas and use cases for automating business processes using robotics Being at the forefront in the industry, L&T is well-positioned to capitalise on the emerging trends in the technology landscape, while addressing the challenges posed by an increasingly complex and interconnected world.


The COVID-19 pandemic happened to be an intervention that compelled organisations across the globe to reassess ways of operating and engaging with their workforce internally. The Company, taking into account the lessons learnt and the transformed perspectives, continued implementing industry-leading HR initiatives and some of them are summarised below:

The Company developed a refreshed and realigned HR strategy. A Future-Ready HR Strategy Workshop was organised and key themes were identified, namely: Employee Experience, Agile Leadership, People Leadership at Core, Alternate Talent Model, and Diversity, Equity and Inclusion (DEI). With a view to providing strategic direction and guidance, the Lakshya 2026 Corporate HR Steering Committee was set up.

This year, the Company accelerated its efforts in the space of digitalisation. It began with the incorporation of an advanced ERP system in the form of SF Success Factors (Employee Central). Further enhancements were made by introducing robust Performance Management, Career Development and Succession Planning modules. Subsequently, 360-degree and 270-degree feedback modules were launched, which are extensively used by our different businesses. The Talent Acquisition process was also digitalised by launching ‘People Strong. Six Human Capital Dashboards were created in the Power BI which helped businesses in improved decision making and strategy formulation. The Company partnered with Pay Review in order to harmonise the entire Groups compensation structure. In order to gather employee feedback periodically, HEERA - an AI-enabled bot, was integrated with MS Teams, aiding in conducting quick engagement surveys.

With robust processes and digital systems in place, the

Company strives to identify, develop and nurture high-potential talent for leadership positions. The Strategic Leadership Talent Acquisition function identifies, selects and onboards high-calibre external leadership talent as per the requirements of our existing as well as new-age business portfolios.

With a major emphasis on building a diverse workforce, the Company focused on campus branding which included initiatives like the ‘L&T Campus Engage programme that facilitates the connection with engineering and management students across various colleges by offering industrial visits, sponsoring fests, organising national events, tech talks, etc. GRACE (Get Ready for an Awesome Career in Engineering) was launched as a pre-joining engagement initiative. 3,050 GETs (which is double the standard annual headcount) were inducted. This year, women hires constituted 30% of the total campus hires.

To encourage women to re-enter the workforce, L&T instituted a programme, ‘Renew, in the year 2015. The application process of Renew is integrated with the online recruitment platform which helps in regular tracking and monitoring of the process. The programme is gaining traction over the years. FY 2022-23 Renew has been L&Ts go-to programme for hiring talent across various roles.

A renewed thrust on employer branding was initiated through various initiatives on social media platforms. L&T has around 3.6 million followers on its LinkedIn page. This year, the Company focused on enhancing the employer brand, increasing brand awareness and engaging with employees through the Life Pages on the Companys LinkedIn page.

L&Ts Performance Management System, aptly named FAIR (Framework for Linking Appraisals with Incentives and Rewards), ensures that top-class talent gets visibility, thereby furthering meritocracy. The Leadership Development Centres, pivotal to the Companys core philosophy of grooming internal talent, ensure that the right leadership talent is identified through an intense and objective selection process. Talent Assessment is successfully done through the Development Centres which encompass a 2–3 day structured process to identify the strengths and developmental needs of employees in terms of the required competencies.

A structured succession planning approach is undertaken to meet business objectives. An entire portfolio of critical roles is created by aligning the impact drivers, where succession matters the most.

The Companys signature Seven-Step Leadership Development Programme is an established best practice in talent development. This flagship programme provides employees with high-potential access to a curated learning experience delivered by reputed thought leaders from Indian and international business education institutes. The emerging leaders who move up the Seven-Step Leadership Programme are mentored by L&T seniors, ensuring robustness in the continuity of the leadership process and value systems.

The organisation gives immense emphasis on learning and development. The Company runs as many as 18 dedicated training institutes / academies including Leadership Development Academy in Lonavala, IPM – Institute of Project Management (in Chennai and Vadodara), CTEA – Corporate Technology & Engineering Academy (in Mysuru and Madh), Safety Innovation School, Hazira in Surat and 8 Construction Skills Training Institutes (CSTIs) across the country.

The Company digitalised learning delivery and democratised learning by establishing a scalable and multi-faceted learning platform called ATLNext. It offers hundreds of relevant certification courses around the various competencies aligned with L&Ts competency framework. In FY 2022-23, ATLNext recorded 3.36 lakh hours of learning, clocked by over 27,000 L&T employees through digital learning.

The Company has a Safety Education Programme that is designed to build and strengthen a culture of safety at the workplace. Ensuring safety for its employees and workmen, the Company has partnered with the National Examination Board in Occupational Safety & Health (NEBOSH) and The Institution of Occupational Safety & Health (IOSH) to develop internal training capabilities in HSE and is an accredited course provider for its employees on diverse aspects of industrial and project safety.

As an effort to promote instant recognition, an online rewards and recognition platform integrated with MS Teams was launched to promote a culture of appreciation and recognition of employees at the workplace. The Employee Experience Technology Platform creates engagement surveys to help the organisation gauge the employee pulse from time to time and take necessary actions.

L&T Radio was launched, in order to create high-impact employee communication and engagement through a series of podcasts covering leadership messages, employer branding, success stories, HR policies and more. Over 50 podcasts have been hosted this year. In addition, employee engagement initiatives namely L&T QuizWiz and Art Beats were organised.

The Annual HR Awards - AHA 2022 was successfully hosted on August 25, 2022, at LDA, Lonavala. The initiative received a record 80+ entries across businesses. With scrutinisation using the robust RADAR (Result, Approach, Deployment, Assessment and Refinement) model, 16 employees made it to the final round and presented their cases.

In FY 2022-23, HR Shared Services Centre (HR SSC) expanded its operations to cover end-to-end onboarding, talent acquisition, learning and development and compensation and benefits. Under the umbrella of HR SSC, the Company is set to improve HR process efficiency through standardisation, digitalisation and automation in the upcoming year.

The Company has an institutionalised mechanism for dealing with complaints of sexual harassment through a formal committee constituted in line with the Companys policy on ‘The Protection of Womens Rights at the workplace under relevant statutory guidelines. This policy has been widely disseminated across the Company and complaints, if any, are addressed in a time-bound manner.

L&T is an Equal Opportunity employer. Whether it is hiring or providing growth opportunities, a merit-based approach is followed. To level the playing field, there is a policy for Rating Protection of Women on Maternity Leave. This ensures they do not lose out on their growth and progression prospects due to their pregnancy.

With employees from 52 nationalities, 36 domiciles (across states and UTs) within India, who speak 80 unique languages, the Company actively promotes multiculturality, being an integral part of the organisations ethos.

This year, a strategic focus on DEI initiatives was initiated by the Lakshya 2026 Task Force consisting of leaders from across businesses. Wellness rooms were established in seven locations to support lactating mothers. Special ergonomic chairs were offered to expectant mothers. A few wellness facilities have been rolled out for female employees. On Womens Day - March 8, 2023, the Company organised a virtual DEI showcase where each business created virtual stalls, showcasing practices to improve gender diversity.

Several initiatives under the WINSPIRE umbrella - which focuses on engaging and developing women employees - were organised. Sensitisation workshops were conducted across the organisation to address unconscious bias. The organisation is proud to have achieved Gender Diversity, with the share of women employees standing at 7.1% of the total this year. This is the highest single-year increase in terms of numbers and percentage.

All the practices mentioned earlier have been recognised by prestigious national and international bodies. Some of the noteworthy awards won by L&T during FY 2022-23 are listed below: ? Great Place to Work certified for the FY 2023-24 ? BML Munjal Award 2022 – Sustained Excellence Category presented by the Honble Vice President of India ? Business World People – HR Excellence Summit & Awards 2022 in Talent Acquisition and HR technology This year, L&T Group participated in the Great Place to Work (GPTW) survey and was certified as a Great Place to Work? in India by GPTW Institute. The study facilitated the Company to get employee feedback and in enhancing the employee experience. Detailed action planning will be carried out in the upcoming financial year.

For further details on L&Ts Human Resources initiatives, refer to Human Capital in the Integrated Report section.


During the year, multiple projects across multiple businesses received awards for Environment, Health and Safety from RoSPA (The Royal Society for the Prevention of Accidents), British Safety Council and National Safety Council of India (NSCI). L&Ts businesses have also won many awards and accolades. Some noteworthy awards and accolades are mentioned below:


? Ranked 3rd in the global ‘Top 200 Environmental Firms list for 2022 released by Engineering News-Record (ENR), New York and L&T was the only Indian firm to feature in that list ? BML Munjal Award 2022 in the Sustained Excellence Category for Business Excellence through Learning and Development ? Featured among the Top 10 of LinkedIns ‘25 Best Workplaces in India ? Certified to Great Place to Work? ? Recognised as ESG Trailblazer at ESG World Summit & GRIT Awards 2022

Heavy Civil Infrastructure

? Mumbai–Ahmedabad High-Speed Rail Projects C4 Package won the Apex India Green Leaf Award 2021 in the ‘Gold category for achieving environmental excellence ? The business was named the ‘Metro Rail Contractor of the Year at the 12th Construction Week Awards


? The business Construction vertical won ‘Platinum Award at the 9th FICCI Quality Systems Excellence Awards for Industry

Buildings & Factories

? Birsa Munda Hockey Stadium, recognised by Guinness Book of World Records as the worlds largest fully-seated hockey arena with a seating capacity of 20,011 permanent seats, was completed in 14 months and was inaugurated in January 2023 ? The business was awarded the ‘Leading Airport Construction Company by ASSOCHAM in January 2023 ? Statue of Unity was declared the – ‘Best Tall Non-Building 2022 by Council of Tall Buildings and Urban Habitat (CTBUH) in Chicago, USA

Transportation Infrastructure

? The business Railway SBU won ‘Gold Award at the 9th FICCI Quality Systems Excellence Awards for Industry


? The Boiler Manufacturing Unit at Hazira was conferred the Platinum Award at FICCIs Industry 4.0 Awards

Heavy Engineering

? The business Manufacturing vertical won ‘Platinum Award at the 9th FICCI Quality Systems Excellence Awards for Industry

Defence Engineering

? The business received the STAR award in Occupational Health Safety and Environment Awards from Ministry of Labour Welfare and Skill Development on April 11, 2022

Golden Peacock Award for Risk Management 2022 in the IT services and consulting category

L&T Technology Services

? LTTS has been rated as leaders in Digital Engineering Services in North America across Design & Development (Product, Services, Experience), Integrated Customer/User Engagement and Experience, Platforms and Applications Services, and Intelligent Operations ? LTTS conferred with the 2022 Notable Supplier Award by Bosch India ? LTTS Chest-rAI TM solution recognised as an "Innovator" by NASSCOM in their AI GameChangers Awards 2022

L&T wins BML Munjal Award 2022 in the Sustained Excellence Category


? Won ‘Golden Peacock Award for Risk Management 2022 in the IT services and consulting category ? Certified by Great Place to Work? Institute as one of Indias Best WorkplacesTM for Women for the second consecutive year ? Won the ‘Silver Shield towards Excellence in Integrated Reporting in the service sector category for FY 2021-22 from The Institute of Chartered Accountants of India ? LTIMindtrees Canvas named winner in The 2023 Artificial Intelligence Excellence Awards ? LTIMindtrees GeoSpatial NxT wins the 2022 IoT Excellence Award for excellence in innovation

LTTS Chest-rAI TM solution recognised as an Innovator by NASSCOM in their AI GameChangers Awards 2022


? Won Emerging EdTech Start-up award in the Times Business Awards, 2022

L&T Infrastructure Development Projects Limited

? The business was conferred on November 17, 2022 the NASSCOM Enterprise Cloud Adoption Award 2022 at the NASSCOM Cloud Summit under the category ‘Leveraging Cloud for Operations – (Large Company)


? The business received has bagged GOLD in the National Awards for Manufacturing Competitiveness from assessment carried out by the International Research Institute for Manufacturing

Construction Equipment

? The business ‘Outstanding Contribution award from ET (Equipment Times) and Hall of Fame award from CIA World for the contribution in the construction equipment industry ? Won ‘Silver Award in IMexI-2022, Integrated Manufacturing Excellence Initiative organised by Kaizen Institute

Hyderabad Metro

? Rail Analysis India Award 2022 – ‘Rail Analysis India - Excellence in Green and Sustainable Metro System

Nabha Power

? Twin Awards at CII Energy Efficiency Summit, 2022

? Excellent Energy Efficiency Unit (sixth time in a row)

? National Energy Leader 2022 (fourth time in a row)

? Winner for ‘Efficient Management of Fly Ash in the category of private TPP >500 MW by Mission Energy Foundation ? Winner under the ‘Best Thermal Power Generator - Commissioned after 2010 category from Independent Power Producers Association of India (IPPAI)