L&T scales down 5-year targets

Mumbai: India's largest engineering and construction major Larsen and Toubro (L&T) has moderated its long-term Lakshya Plan 2031 targets on a larger order book base and a hazy Middle East visibility, but the company plans to invest ₹43,000 crore in the next five years, the company told analysts on the fourth quarter earnings call on Tuesday.

Lakshya is L&T's five-year strategic plan. "The Lakshya '31 targets seem toned down, given a large base of ₹7 lakh crore order book and hazy Middle East visibility," said Nuvama Institutional equities in a May 5 report. Under the revised roadmap, L&T now targets 10-12% CAGR in order inflows, 12-15% revenue growth and return on equity (RoE) of 16-17% by 2031. In the Lakshya 2021-2026 plan, the CAGR in order inflows target was 14%, 15% was the revenue growth target and the ROE of 18%.