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L&T fires 14,000 people but hydrocarbon segment holds up well
Nov 24:
A national and global slowdown in key verticals have forced L&T to cut a massive 14,000 jobs
8The $16-billion diversified conglomerate said on Tuesday the step was an attempt to “right size” its strength in the face of business slowdown.
8Among other reasons, digitization of operations also caused redundancies that led to downsizing, thus raising the specter of jobless growth of the Indian industry.
8Weak industrial demand and low capacity utilization continue to challenge the business environment, with revenues impacted by lower offtake in construction and mining equipment, delayed defence ordering and end-stage execution of current realty projects
8Q2 margins have been adversely affected by inventory write down in shipbuilding and cost overruns as well as under-recoveries in the metallurgical and material handling business
8Yet the hydrocarbon segment of the company seems to standing up pretty well despite the slowdown, making up 14% of the order inflow whereas it makes up just 8% of the total order book.
8Some credit goes to L&T aggressive hydrocarbon marketing teams not just in India but across the world where it has earned a reputation for good work.
Click on Reports for full details
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8The $16-billion diversified conglomerate said on Tuesday the step was an attempt to “right size” its strength in the face of business slowdown.
8Among other reasons, digitization of operations also caused redundancies that led to downsizing, thus raising the specter of jobless growth of the Indian industry.
8Weak industrial demand and low capacity utilization continue to challenge the business environment, with revenues impacted by lower offtake in construction and mining equipment, delayed defence ordering and end-stage execution of current realty projects
8Q2 margins have been adversely affected by inventory write down in shipbuilding and cost overruns as well as under-recoveries in the metallurgical and material handling business
8Yet the hydrocarbon segment of the company seems to standing up pretty well despite the slowdown, making up 14% of the order inflow whereas it makes up just 8% of the total order book.
8Some credit goes to L&T aggressive hydrocarbon marketing teams not just in India but across the world where it has earned a reputation for good work.
Click on Reports for full details
