Mumbai, Aug 29 (UNI) India's largest engineering and construction company, Larsen&Toubro Ltd suspects considerable impact on capital goods sector in the backdrop of persisting slowdown in industrial sectors coupled with the spiralling input cost.
Even though the micro economic fundamentals continue to inspire confidence, the recent slowdown in the industrial sectors coupled with the spike in the input costs, particularly oil and the credit squeeze, may impact the ability of the capital goods sector to sustain the growth momentum in the near term, L&T Chairman A M Naik told shareholders at the company's 63rd annual general meeting here today.
He said ''There is a slowdown in some sectors, for example, construction and refinery. But we will be more than making this up in new areas like railway and power.'' L&T has plans to build 5,000 MW of capacity in the next five years, with the first plant to be commissioned in 2013.
The company, which has operations ranging from manufacturing to software services, expects its annual revenue to grow 30 per cent in the fiscal year ended March 2009, Mr Naik said.
He said the company had acquired strategic stakes in some key vendors to ensure raw material availability and 75 per cent of the company's orders were insulated from commodity price variations.
UNI PP SR NP2032