SN Subrahmanyan new CMD of L&T, AM Naik steps down

MUMBAI: SN Subrahmanyan, CEO-MD, has been re-designated as the chairman and managing director of the company with effect from October 1, 2023, infra behemoth L&T said on Wednesday in an exchange filing.

Larsen & Toubro (L&T) non-executive chairman Anil M Naik has stepped down and would now be its chairman emeritus.

These top-level changes shall be effective from October 1, as per a decision of the L&T Board of Directors meeting.

Subrahmanyan is presently the company’s CEO and MD, while Naik, 80, has been with the group for nearly six decades.

“L&T has been my life. I am immensely proud that I could play a significant part in its growth. The growth trajectory that the company has charted in the last two to three decades is exemplary. The emphasis we laid on IT and Technology Services has had a significant positive impact on the profitability of the organisation,” Naik said.

Naik, popular as AMN in corporate circles, is the architect of L&T’s transformation into a sharply focused global conglomerate with dominance in the sectors in which it operates.

Under his leadership, both L&T’s revenues and market cap grew significantly and the board acknowledged his unparalleled contribution to the company’s massive growth despite challenges.

A civil engineer and management graduate, Subrahmanyan joined the L&T construction business in 1984 and was involved in various infra businesses like new airports, metros, freight corridors in India and abroad.

From July 2017, he has been the CEO-cum-MD when the company continued its robust growth in revenues and profits, said an official announcement.

L&T reported a consolidated revenues of Rs 183,341 crore for the year ended March 31, 2023, recording a healthy y-o-y growth of 17%, aided by strong execution of a large order book in the infrastructure projects segment and robust momentum in the IT& TS portfolio. International revenues during the year at Rs 68,787 crore constituted 38% of the total revenue.

For the quarter ended March 31, 2023, the consolidated revenues at Rs 58,335 crore recorded a y-o-y growth of 10%. The share of international revenues during the quarter was 39%. The company for the year ended March 31, 2023, posted a total consolidated profit after tax of Rs 10,471 crore, a robust growth of 21% compared to the previous year.

The PAT includes an exceptional gain of ₹ 97 crore (net), attributed to profit on divestment of the mutual fund business of the financial services segment partly off-set by a one time charge due to remeasurement of the wholesale loan assets of the financial services segment at fair value. For the quarter ended March 31, 2023, the PAT at Rs 3,987 crore, registered a growth of 10% y-o-y basis.