Hyderabad: Larsen and Toubro Ltd (L&T), which is building the Rs.16,375 crore Hyderabad Metro Rail project, said on Tuesday it is facing a cost overrun of as much as Rs.3,000 crore on account of high interest cost and delays in execution.

“The project is at a critical stage,” said V.B. Gadgil, chief executive and managing director of L&T Hyderabad Metro Rail Pvt. Ltd, the unit that’s executing the metro rail project.

Markets continue to trade near their day's highs in late morning deals with capital goods and bank shares leading the gains on better-than-expected GDP growth in the first quarter ended June 30, 2014.

At 11:50AM, the 30-share Sensex was up 168 points at 26,808 and the 50-share Nifty was up 56 points at 8,010.

L&T Infra Finance has signed an agreement with Lavasa Corporation, a subsidiary of HCC group, for purchase of 20.23 hectares of land, with a development potential of 500,000 sq ft at Mugaon town in Pune's Lavasa City.

Tobacco-to-FMCG conglomerate ITC has replaced Tata group's IT giant TCS as the country's most admired company on a Fortune magazine list, which has got as many as 19 new entrants including Cognizant, Birla group firm Idea Cellular and discom BSES Rajdhani Power Ltd. In the latest list for the year 2014, ITC is followed by engineering and infrastructure major Larsen and Toubro (L&T), another FMCG giant Hindustan Unilever, carmaker Maruti Suzuki and public sector bank SBI among the top five most admired companies in India.

Policy changes and a provision for guaranteed returns must be put in place to boost infrastructure development, which requires large-scale funding, said Larsen & Toubro (L&T) Chairman A M Naik. Companies will invest only if there is an assurance of returns, he said in an interaction with reporters here on Friday.

Over the past few years, L&T has been looking abroad for orders. Naik said the company would consolidate its international business by replicating its domestic structure and systems and that it is hopeful of domestic projects coming on track with the new government approving coal mines and taking policy decisions to support investment.

The international strategy of Larsen & Toubro, the country’s largest engineering and construction company, hasn’t quite worked the way it had wanted. It hydrocarbon division reported a Rs 900 crore loss in the June quarter. With the company booking losses in all the six hydrocarbon orders it won and implemented over the past three years, the stock has fallen 12 per cent since the results were announced. Analysts are angry, as the company’s performance is not in line with their projections and say L&T did not adequately disclose the extent of stress in its international order book.

Larsen & Toubro (L&T) will strengthen its project management team and go in for subcontracting instead of hiring local staff in the Persian Gulf, following a Rs 942-crore pre-interest and tax loss in the hydrocarbon segment in the last quarter.

L&T posted a 111 per cent year-on-year growth in consolidated net profit to Rs 967 crore in the first quarter of 2014-15 on the sale of its stakes in its finance services company, L&T Finance Holdings, and Dhamra port.

NEW DELHI: The S&P BSE Sensex plunged as much as 86 points in trade on Wednesday following muted trend seen in other Asian markets. The fall in the index was led by losses in ITC, HDFC Bank, Tata Motors and L&T.

Tracking the momentum, the 50-share Nifty index also came under some bit of pressure but was trading above its crucial psychological level of 7700.

With Maruti, Bharti, HUL and Idea all beating the Street, the mood in corporate India, if not actually, upbeat, is certainly better than it was a few months ago. There is, however, some despondency that goes with the realisation that the core of the economy remains in deep trouble; from Larsen &Toubro to NTPC and Ultratech to Sesa Sterlite, large chunks of industry continue to find the going tough.

MUMBAI: L&T Infrastructure Finance is looking to raise roughly $1 billion in a private equity (PE) fund focused on investing in power, roads, ports and other projects, three people with direct knowledge of the matter said, with the sector set to pick up as the new government gets cracking on improving India's creaking facilities.

The infrastructure finance arm of engineering giant Larsen & Toubro resumed the fund-raising exercise after the general election and aims to finish by next year. The money is expected to be raised from domestic and foreign institutional investors.

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