Larson & Turbo is aiming to increase the contribution of information and technology and technology services portfolio to high teens by 2026 as per its 2022 annual report. The IT&TS portfolio for L&T includes Mindtree, L&T Infotech and L&T Technology services.
S N Subrahmanyan, CEO and MD for L&T noted, “The IT&TS businesses will continue to balance the risk and cyclicality associated with the traditional projects and manufacturing segment. The momentum from existing and emerging tech trends such as Cloud, Digital, AI, Industry 4.0 is expected to propel growth in the near term. This portfolio will aim at revenue growth in the high teens during the Plan period and be vigilant to tap opportunities for inorganic growth as they emerge. Making all these plans work will undoubtedly need high calibre digital talent, and we intend to on-board the finest minds in the industry.”
Subrahmanyan further added, “The IT&TS portfolio will also have the in-house incubated e-commerce and digital platforms launched in FY22, SuFin and Edutech as well as the Data Centre Business.”
Lakshya 2026 strategy
This is part of the group’s Lakshya 2026 strategy, where the three focus areas include - hi-tech manufacturing and services and EPC projects.
Subrahmanyan states that the engineering giant aims at clocking group revenue of ₹2.7 lakh crore and an ROE of 18%+ by FY26. ”Our thrust areas in the Plan period are clear: Ensure sustainable growth in the current business portfolio through profitable expansion and execution, scale up through business model innovation and meet customer demands in an agile manner in the newer businesses. This should help us clock group revenue of ₹2.7 lakh crore and an ROE of 18 per cent + by FY26,” he said.
The L&T order inflow for 2022 fiscal year was at ₹1,92,997 crore, “achieved on the back of domestic and international order wins in hydrocarbon and infrastructure.” The L&T Group recorded revenue of ₹1,56,521 crore during FY22, registering a growth of 15 per cent.