A little over a week ago, India had reason to cheer, as Chandrayaan-2 took off to discover a hitherto undiscovered part of the moon. Till date, only three countries hold the honour of having landed an experimental vehicle on the moon, and India will soon join this elite league, thanks in part to L&T.
Building on over four decades of association with India’s space missions, the mission-critical hardware and tracking systems provided by L&T will help Chandrayaan-2 and India create history in space exploration.
At any point of time, L&T is engaged in over 600 projects at various stages of completion. In the past couple of years, your Company has embarked on a major digitalisation drive, using collaborative digital tools to achieve cost optimisation and construction excellence across a diverse project base.
We pioneered the use of robots for painting, created digital stores for accurate stock analysis, enhanced project monitoring through mobile- based apps and use drones to map new road projects. We have connected thousands of machines in what is indisputably the largest ever equipment monitoring and control operation in the country. This is just a glimpse of L&T’s enterprise-wide digitalisation initiatives that deliver unmatched efficiency, precision and speed of execution in mega projects.
This year, your Company completed the execution of three mammoth projects, setting world records in each case.
The 182-metre tall Statue of Unity, the world’s tallest statue, was built in a record 33 months.
The world’s largest religious gathering, the Kumbh Mela, saw 200 million people congregate at Prayagraj in Uttar Pradesh. Your Company provided a bouquet of high-tech solutions including a first-of-its-kind global crowd management system to ensure an incident-free mega event.
L&T has built a 1.6-kilometre-long mega barrage as part of the world’s largest multi-stage Lift Irrigation Project in Telangana state. This feat was achieved in just 24 months, while setting a record for the world’s biggest concrete pour.
Each of these projects have been executed under challenging conditions and been successful primarily due to the use of innovative technology developed and implemented by L&T. Moreover, they have brought progress and prosperity to the communities in those regions.
At L&T, sustainable growth forms the bedrock of our operations. We view sustainability as the essential discipline of balancing economic growth with social inclusiveness and environmental conservation.
Our people are integral to our work environment and we strive hard to create a culture that is inclusive, supportive and collaborative. More importantly, one that spawns innovative ideas across the spectrum, enhancing our competitive edge.
Apart from regular training that is imparted to employees at our training facilities, your Company has also initiated numerous online HR and training initiatives – including a comprehensive online training programme, with over 400 modules spanning functional, behavioural and technical subjects. In its latest avatar, the programme harnesses the power of machine learning and artificial intelligence to create an immersive, personalised learning experience that enables even more effective upskilling of our employees.
Service to society is one of L&T’s mantras, and over 2.3 million disadvantaged people benefit from our CSR initiatives every year. While your Company’s spends on CSR activities exceed the recommendations of the Companies Act 2013, we have used technology effectively to multiply the impact many times over.
Today, automated weather stations help farmers plan their crops better, GPS-enabled medical vans provide healthcare services to more people in remote locations, digital literacy programmes are bringing tribal children onto the digital super-highway and empowering villages, and mobile-based training courses are enhancing employability – while reducing dependence on manpower or external resources. In the years to come, I am sure that we will see many more technology-based solutions being implemented to accelerate social development.
The planet we inhabit is constantly under threat from over industrialisation, emissions and wanton use of natural resources. In order to do our bit to mitigate environmental impact, we leverage the latest technology to ‘reduce, reuse and recycle’, create a more sustainable operating environment, and most importantly, bring about a behavioural change in stakeholders, to successfully sustain our efforts.
Your Company has implemented a range of energy-efficient systems to save 110 million units of electricity – thereby avoiding 90,500 tonnes of carbon dioxide-equivalent emissions.
We have cumulatively recycled over 34000 tonnes of metal, built 17 Green Buildings as office spaces, and are phasing out the use of Ozone Depleting Substances (ODS) in our air-conditioning systems, in line with applicable regulations. A combination of water conservation technologies and rainwater harvesting has also enabled us to make all our 24 campuses water- positive.
We offer green technology solutions for our clients, work continuously on energy intensity reduction and on shrinking our carbon footprint. The Green Portfolio component of our total revenue has been growing steadily year-on-year, indicating a greater level of sustainability consciousness across our client base.
As India’s largest Engineering & Construction conglomerate, with hundreds of projects in various stages of completion, the safety of our people is paramount. Given the sheer scale and diversity of our workforce, and challenges faced at individual projects, it became imperative to go beyond physical experiential training, and create technology-led solutions to meet our vision of ‘Zero Harm’ across worksites.
We have created Virtual Reality-based safety training modules and short training films in various languages for workmen and site supervisors, based on each business’s requirements. This immersive and realistic training experience has helped improve safety consciousness across sites.
Our digitalisation initiatives in the area of safety consciousness include mobile- based apps to increase compliance to EHS norms across geographies, e-learning modules at project sites and digital reporting of unsafe acts and action taken – all of which has helped make every L&T worksite a safer place to work in.
Your Company has once again turned in a stellar performance on all key parameters. Order Inflows came in at Rs.176,834 crore in FY19 registering a strong growth of 16% over FY18.
The unexecuted Order Book as on 31st March, 2019 stood at Rs. 293,427 crore, which gives us strong revenue and margin visibility for the next few years. Revenues in FY19 have clocked in at Rs. 141,007 crore, registering a resurgent growth of 18% over FY18. PAT touched an all-time high of Rs. 8,905 crore in FY19, representing a substantial growth of 21% over FY18.
Over the last eight decades, L&T has been leading the way in most of its lines of business. This sustained leadership has been made possible only because the Company embodies the spirit of learning... new skills, new ways of meeting a challenge and use of new technologies.
This spirit of curiosity and a ‘can do’ attitude is fostered by our captive training institutes that run the gamut from Leadership Development to Project Management and hands-on technical training.
Your Company also has a number of state-of-the-art Research & Development centres and certified testing centres, spread across the country. Manned by over 3000 Research & Design engineers, these centres push the limits of innovation to develop customised products and solutions – many of which are patented.
In the last year alone, our engineers worked on over 2000 value engineering projects, each carrying the L&T stamp of excellence.
In keeping with our long-term plan to enhance the asset-light proportion of L&T’s business portfolio, your Company has acquired a controlling stake in Mindtree Limited – a company operating in the IT services space.
We believe the acquisition will complement the Company’s existing IT services capabilities, thereby widening our IT and Technology Services portfolio, and creating value in the years ahead.
In conclusion, I would like to thank our shareholders, the leadership team of L&T headed by S.N. Subrahmanyan, L&T-ites, our stakeholders, customers, vendors and business partners. I also acknowledge and thank my fellow Board Members for their invaluable support in taking the Company to greater heights.
Jai Hind !