Diversified group Larsen & Toubro (L&T) on Monday said that the Indian industry, mainly hydrocarbon and infrastructure, have deferred Rs 40,000 crore (Rs 400 billion) worth projects in Q2 FY 11.
"We have witnessed orders worth Rs 40,000 crore being deferred in Q2 FY 11," L&T CFO Y M Deosthalee said. Large contracts sometimes get deferred as the decision-making process is long. Lots of orders have been pushed towards Q4 FY 11, he said.
However, there will be no major impact on L&T's performance as these orders are not cancelled and there are enough indications of orders fructifying in the remaining two quarters of current fiscal, Deosthalee said.
The company said new orders rose 11 per cent in the quarter ended September from a year ago and said it expected to maintain its growth momentum in the medium-term. L&T's order back-log stood at Rs 1.15 trillion as of end-September.
About 80 per cent of postponement of orders are in the domestic and 20 per cent in the international market, he said. Deosthalee clarified that these orders relate to the whole sector and are not L&T-specific.
