NEW DELHI: Taking a grim view of the situation following demonetisation, India’s largest engineering and construction company Larsen & Toubro (L&T) has cut its growth forecast for FY17 to 10 percent. The infrastructure major had earlier provided a guidance of 15 per cent growth in order inflow and 12-15 percent growth in revenue.
The company said domestic growth might take longer time as investment momentum remains weak and the banking system is burdened by debt overhang.
“Government’s initiatives to curb the parallel economy and make a transition to cashless economy have caused disruption whose impact on the business sentiment is yet to be conclusively assessed,” it said.
It also added that the challenging business conditions would continue in the next few quarters until the government moves to lift growth through “infra spend and tax reforms take effect”.
The company reported a 39 per cent rise in net profit at Rs 972 crore for the December quarter, up from Rs 700.34 crore in the year-ago period, on the back of lower material costs and higher sales.