L&T Precision Engineering Sees 'Great Potential' For Order Book To Swell Post Operation Sindoor

The impact of Operation Sindoor is expected to draw significant global attention to Indian defence products, according to Arun Ramchandani, senior vice president of Larsen & Toubro Precision Engineering and Systems.

While it's too early to quantify a clear rise in international orders, the deployment of indigenous equipment in combat has boosted India's credibility globally, he told NDTV Profit in a conversation on Monday.

"This (Operation Sindoor) now gives a lot of credibility to our products. And I'm sure that it will trigger a much higher interest globally," he said. "We do see early signs of that and I'm sure that whatever has happened has not gone unnoticed and will certainly lead to better enquiries and better interest in our products."

Referring to Operation Sindoor, Ramchandani also highlighted the importance of advanced equipment in combat. "Given the kind of supply-chain challenges that exist around the world, there is a great opportunity to introduce high-tech, precision-engineered Indian products to the global market," he said.

L&T Precision Engineering is focused on defence and precision-engineered electronic products and aims to leverage its expertise to meet the growing demands of the sector.

The company's precision engineering and systems business vertical also posted an impressive rise in order inflows, with Ramchandani attributing it to a long-term trend rather than solely to Operation Sindoor.

"Operation Sindoor confirmed the necessity and resolve for this trend. We see great potential for our order books to swell in precision engineering and systems," he said.

There's a lot happening in land, marine and aerosystems, as well as new products and electronic systems. This is the time for strong growth, and the company has already seen significant order book growth at the start of this financial year, according to Ramchandani.

"So, if you look at margins, a lot of the growth of our order book has come from a few platform orders and big system orders. When you look at these big systems and platforms, you are aggregating a lot of subsystems and there is little pressure when you look at these large-scale orders on the margins," Ramchandani said.

He said the company is investing in high-margin IP-led products, which will introduce balance to their portfolio, improving overall margins going forward.