S. N. SUBRAHMANYAN
CEO & Managing Director, L&T
Dear Colleagues,
On March 27th, 2023, for the first time in the history of L&T Construction, our collections crossed the One Lakh Crore mark and we subsequently ended FY23 collecting Rs. 1.05 Lakh Crores. This is a stupendous achievement and hearty congratulations to everyone who packed a punch to turn in this performance that proves yet again: where there’s a will, there’s a way. This was possible because every stakeholder contributed their mite: right from the corporate, IC and site leadership right down to the junior most. We were able to collect because we invoiced aggressively which in turn was because our project teams achieved their milestones in time. This is teamwork and collaborative working at its best and kudos once again to everyone for rising to the task and delivering. A special word of thanks to all our clients, who supported us by appreciating our effort to pay in time.
It is wonderful that our Corporate Finance & Accounts team have zealously committed themselves to the task of collections by converting it into a drive that has even galvanized other businesses to follow suit. It has triggered a culture that can only be beneficial for the entire Group going forward and has infused the entire system with fresh confidence that seemingly impossible collection goals are achievable. Thanks to these robust collections, our overall working capital has decreased which is indeed good news, as is the fact that a lot of ‘old outstandings’ have been cleared. As our business grows, our collection targets will become steeper too, but we must remain committed to the cause and with focus and drive, the sky is the limit.
Appropriately, this issue of ECC Concord celebrates projects from businesses across L&T Construction that won the Timely Delivery, Quality and Safety Awards for 2022. Kudos to the IC and project leadership and the winning teams for their great performance. It is equally pleasing that the Awards Committee had as many as 67 projects to choose the winners from that reflects a much better overall performance, and a benchmark that we must keep improving, single mindedly focused on completing and delivering all our projects on time, or even better, ahead of contractual schedules.
No magic formula; just a tried & tested formula used magically
There is no better way to connect with and delight a client than to deliver their projects on time to quality and safety. Over decades, the primary reason why our clients have returned to us with new projects is because of our capability to deliver to our commitments by understanding them and their specific requirements well. It is the trust that we have built that has helped us forge enduring relationships with our clients and by delivering, delight them. There is no magic formula to deliver a project on time as some of our award-winning projects have shown; it is all about getting the basics right and using a tried and tested formula magically.
Meticulous planning is the critical first step, followed by identifying and eliminating all possible reasons that could cause delays and, preparing precise mitigation plans to offset the risks, both seen and unforeseen. Project teams that deliver on time determine their hand over dates at the beginning of their projects, evolve a clear and achievable timeline and never waver from their committed timelines. If progress is monitored thus, there is no reason why projects cannot be delivered on time.
Collaborative teamwork is essential for success with the right man doing the right job for which allocation of roles and responsibilities assumes great importance. It is said that 11 stars do not make a great team, but 11 good players can make a star team. Every team member must be equally committed and driven to achieve a common goal with the same degree of intensity and vigor. Such teams will always succeed.
With increasing successful case studies, we are now harvesting the rewards of seriously investing in frontier technologies. Technology adoption is a proven route to greater efficiency and as our adoption graph soars, so will our success. At the same time, do not forget the criticality of training & development.
The new financial year is on us with fresh challenges. However, on the back of our triumphs of FY23, we are stronger to face the future with greater resolve and if we keep our focus on delighting our clients, FY24 can be even better.
All the best!
S N Subrahmanyan
CEO & Managing Director, L&T