Betting big on India's spending on the infrastructure sector, Larsen & Toubro today stood by its stated outlook of 25 per cent growth in order inflows for the current year though the first quarter ended with a negative note.
The engineering major's order book shrunk by 22 per cent in the first quarter of the current fiscal at Rs 9,571 crore as compared to Rs 1,22,34 crore in the corresponding quarter previous fiscal.
According to company's Executive Vice President (Finance) R Shankar Raman, the second quarter of the fiscal might not look better as compared to the first quarter, but order inflows in the third and the fourth quarters would be enough to meet the stated 25 per cent growth rate for the entire fiscal.
With political stability, a balanced budget and no concern over liquidity in the system, there is a gradual build-up of optimism all across, L&T said.
It also identified "some bumps" on the road ahead in the worrisome level of fiscal deficit and the catious approach of the public sector, and the fact that orders from the public sector was yet to pick up.
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