Larsen & Toubro (L&T), India's largest engineering and construction firm January 23 said it is confident of achieving its guidance on order inflow and margins, despite a tough third quarter due to execution slowdown.
The company had earlier given guidance of 10-12 percent growth in order inflow and 12- 15 percent in revenue.
The company attributed the execution challenges to work getting held-up in Andhra Pradesh, the Mumbai Coastal Corridor Road project and the projects in Delhi NCR region.
In Andhra Pradesh, L&T had to put several projects on hold, especially those pertaining to the capital Amaravati, as the new government led by Chief Minister YS Jagan Mohan Reddy had called for a review of contracts awarded under predecessor N Chandrababu Naidu.
The company said the review is expected to be completed in next 10-15 days and will end the uncertainty.
In Mumbai, the construction on the Rs 14,000 crore Mumbai Coastal Corridor Road project was hit by litigation with Bombay High Court quashing the Coastal Road Zone clearances granted to Municipal Corporation of Greater Mumbai. The Supreme Court later stayed the high court order. The company said the execution will gather pace.
In Delhi-NCR region, L&T's work was impacted for almost two months due to a ban on construction, which has now resumed.
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