L&T expects 17% step up yearly return

Sep 06, 2010 |

Correspondent

INFRASTRUCTURE MAJOR Larsen and Toubro (L&T) is expecting an internal rate of return (IRR) of 14 to 17 per cent from Hyderabad Metro Rail project.“Like in any other build, operate, and transfer (BOT) project, we are expecting the debt to be about 70 per cent of the total cost and the balance would be brought in the form of equity,” L&T’s CFO and Member of the Board Mr Y M Deosthalee said. “With the IRR of 14-17 per cent, the company expects the project to achieve a break-even level in about five to six years. The project is definitely challenging. We are confident that there are methods of making it viab-le. Our focus is on completing the project,” he said.

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