L&T Plans 10% Workforce Expansion, Eyes Growth in Saudi Arabia

21 Mar 2024 , 05:48 PM

Larsen & Toubro (L&T) increased its workforce by 10% in the past year and plans another 10% expansion next year, according to CFO R Shankar Raman.

The workforce growth between December 2022 and 2023 was 10-11%, and future expansion will be around 10%, influenced by attrition due to talent competition.

L&T aims to boost staff in West Asian countries, particularly Saudi Arabia, where it has established fabrication shops.

Despite military escalation causing supply chain disruptions in West Asia, Raman expects no long-term slowdown in order inflows, especially from Saudi Arabia, where L&T has nearly $16 billion worth of projects over the next two and a half years.

As of Q3 FY24, L&T is on track to exceed its revenue and order inflow targets for 2023-24, projecting 20% growth in order inflow and high teen growth in revenue.

L&T reported a consolidated net profit of ₹2,947 crore for the December quarter of FY24, a 15% YoY increase, driven by better execution of infrastructure projects and continued growth in the IT and tech services portfolio.

In the government's Interim Budget for 2024-25, Finance Minister Nirmala Sitharaman announced an 11.1% increase in capital expenditure (capex) to ₹11,11,111 crore, representing 3.4% of the GDP, indicating a significant boost to infrastructure growth.

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