Larsen & Toubro share price in focus: Infra major sees limited impact from West Asian tensions; 95% projects on track Larsen & Toubro, the engineering and infrastructure company, reported that ongoing tensions in the West Asia region have not significantly affected its business operations, with nearly 95% of its projects continuing as usual. The company, which generates over 35% of its revenue from the Middle East following recent conflicts involving the US, Israel, and Iran, highlighted logistics and supply chain disruptions as key challenges. However, it emphasized that the 5% of projects experiencing delays do not contribute meaningfully to its overall revenue. Subramanian Sarma, the company’s deputy managing director, stated that none of its sites in the Middle East have faced direct attacks, and all staff and workers remain safe. He explained that work has been suspended at five of the 100 projects in the region either due to company decisions or customer requests, citing risks such as proximity to military bases. Sarma noted that the majority of operations are unaffected, with only 5% of projects facing disruptions. The company employs 8,000 workers and 2,000 family members, along with 20,000 contractual workers, in the Middle East. Sarma mentioned that none of the staff have expressed interest in returning to the region, and the company has halted sending new workers since the conflict began. Despite these challenges, Sarma described the Middle East as a “second home” for L&T, where the company has expanded over the past three decades. Supply chain issues have also emerged, with disruptions in the Strait of Hormuz affecting cargo evacuation. Sarma noted that alternatives such as using ports in Oman are being explored to mitigate these problems.#iran #middle_east #strait_of_hormuz #larsen_toubro #subramanian_sarma
L&T Deputy MD Sarma: 95% Project Sites in West Asia Safe, Business Continues Larsen & Toubro (L&T) Group reported that 95% of its project sites in West Asia remain operational, with all staff, their families, and workers under contract safe and unaffected by recent aerial attacks and infrastructure damage in the region. The company’s Deputy Managing Director, Subramanian Sarma, emphasized that operations are proceeding as usual despite the ongoing conflict. Sarma noted that while the situation in West Asia has been volatile over the past three weeks, L&T’s 100 active sites across Saudi Arabia, the UAE, Qatar, Kuwait, and Oman are largely unaffected. He highlighted that only 5% of projects have experienced minor damage, primarily to transmission lines near military bases and some water infrastructure. However, he assured that no significant harm has occurred to the company’s assets or personnel. The company’s Risk Committee and Situation Management Committee have been monitoring the crisis closely, with senior leaders, including six or seven vice-presidents, stationed permanently in the region. Sarma credited L&T’s long-standing presence in West Asia over 30 years for its preparedness, enabling the company to adapt to the current challenges. Logistics and supply chain disruptions have emerged as the primary concern. Sarma explained that while the company has sufficient stock to sustain operations for the next three to four months, recent disruptions in imports from China, Europe, and local supply chains have caused delays. He noted that alternative transport routes, such as cross-country pipelines and evacuation points in Oman, the Red Sea, or the Mediterranean, are being explored to mitigate these issues.#saudi_arabia #uae #west_asia #larsen_toubro #subramanian_sarma
