Larsen & Toubro (L&T) has long been committed to Corporate Social Responsibility (CSR), well before it became a legal requirement. In the financial year 2023-24, the company intensified its efforts towards fostering sustainable growth and enhancing India’s social infrastructure. By focusing on critical areas such as water and sanitation, education, healthcare, and skill development, L&T India not only fulfilled its legal CSR obligations but also exceeded them, making a significant impact on the lives of 1.6 million people across the country.
This report provides a detailed breakdown of Larsen & Toubro Limited’s CSR spending, the initiatives it undertook, and how these projects have contributed to building resilience in marginalized and vulnerable communities.
CSR Philosophy and Approach
L&T’s CSR approach is deeply rooted in the philosophy of inclusive and sustainable development. The company believes in balancing its business performance with environmental and social impact. Its CSR initiatives focus on improving the quality of life in rural and underprivileged communities, reducing social inequalities, and promoting self-sufficiency.
With a clear strategy to address key social issues, Larsen & Toubro’s CSR initiatives align with its broader goal of creating long-term value for all stakeholders, including customers, shareholders, suppliers, business partners, and the community.
Financial Overview of CSR Spending in FY 2023-24
CSR Obligation for FY 2023-24
According to the Companies Act, 2013, Larsen & Toubro (L&T) was required to spend at least 2% of its average net profits over the last three years on CSR activities. For FY 2023-24, the company’s average net profit was Rs 7,548.78 crore, translating into a mandatory CSR spending requirement of Rs 150.98 crore. However, L&T surpassed this obligation by spending a total of Rs 154.83 crore, demonstrating its strong commitment to social development.
Breakdown of CSR Spending
Larsen & Toubro Limited’s CSR Spending Report for 2023-24:
| Key Facts | Details |
|---|---|
| Average Net Profit (Last 3 Years) | Rs 7,548.78 crore |
| CSR Obligation (2% of Net Profit) | Rs 150.98 crore |
| Total CSR Spending for FY 2023-24 | Rs 154.83 crore |
| Excess CSR Spending | Rs 12.66 crore |
| Amount Spent on Ongoing CSR Projects | Rs 146.97 crore |
| Amount Spent in Administrative Overheads | Rs 7.37 crore |
| Amount Spent on Impact Assessment | Rs 0.49 crore |
| Total Beneficiaries in FY 2023-24 | 1.6 million people |
| Target Beneficiaries by FY 2025-26 | 1.7 million people |
| CSR Focus Areas | Water & Sanitation, Education, Healthcare, Skill Development |
| Regions Impacted by ICDP (Water Management) | Maharashtra, Tamil Nadu, Rajasthan |
| Water Table Rise in Project Areas | 8 meters average |
CSR Projects and Focus Areas
- Water and Sanitation:
Larsen & Toubro Limited’s Integrated Community Development Programmes (ICDP), launched a decade ago, focus on improving water and sanitation in rural areas. The company’s efforts, particularly in water-scarce regions of Maharashtra, Tamil Nadu, and Rajasthan, have had a significant impact. Over the years, these programs have improved water availability for nearly 25,000 households, with the water table rising by an average of 8 meters in project areas. - Education:
Education remains a cornerstone of Larsen & Toubro Limited’s CSR initiatives. The company has consistently worked towards improving access to quality education in remote and underdeveloped regions. By providing necessary infrastructure, educational materials, and scholarships, L&T aims to equip young people with the skills and knowledge they need to succeed. - Healthcare:
Larsen & Toubro Limited continues to invest in healthcare services, focusing on disease prevention and improving health outcomes in underserved communities. Medical camps, healthcare infrastructure, and preventive health programs have helped thousands of individuals access vital medical care. - Skill Development:
The company’s skill-building initiatives aim to reduce unemployment and promote self-sufficiency. By offering vocational training and skill development programs, L&T helps individuals, especially from marginalized communities, secure better employment opportunities and improve their quality of life.
Surplus and Excess CSR Spending
For the financial year 2023-24, Larsen & Toubro Limited spent Rs 154.83 crore on CSR activities, which exceeded its mandated spending of Rs 150.98 crore by Rs 12.66 crore. This surplus will be available for set-off in the coming financial years, ensuring that the company continues to have a positive impact on the communities it serves.
Additionally, a portion of this excess spending includes Rs 8.81 crore that was carried over from the previous financial year (FY 2022-23), which had been spent over the required CSR allocation and adjusted against the FY 2023-24 obligation.
Impact and Outcomes
In FY 2023-24, Larsen & Toubro’s CSR initiatives touched the lives of 1.6 million people across various regions in India. The company has set a goal to increase this number to 1.7 million beneficiaries by FY 2025-26, through continued investments in water management, education, healthcare, and skill-building programs.
One of the most notable outcomes of the company’s efforts has been the improvement in water availability across its Integrated Community Development Programme locations, which benefits rural households and agricultural productivity. In the long term, these initiatives are designed to promote self-sufficiency and reduce social inequalities in the most vulnerable communities.
Administrative and Impact Assessment Spending
Larsen & Toubro (L&T) has maintained transparency in its CSR operations. For FY 2023-24, the company spent Rs 7.37 crore on administrative overheads and Rs 0.49 crore on impact assessment. These costs ensure that the company’s CSR programs are efficiently managed and regularly evaluated for their effectiveness and sustainability.
You Learn
Larsen & Toubro (L&T)’s CSR initiatives in FY 2023-24 reflect its unwavering commitment to social and environmental sustainability. By spending Rs 154.83 crore on various programs, the company not only fulfilled its legal obligation but exceeded it, contributing to the well-being of millions of people across India. With a focus on water management, education, healthcare, and skill development, L&T is playing a pivotal role in improving the lives of marginalized communities.
Through its thoughtful and impactful CSR initiatives, L&T india aims to create a lasting legacy of positive social change, supporting the development of India’s social infrastructure and empowering individuals to lead better lives.
इसे हिंदी में भी पढ़े: लार्सन एंड टुब्रो (L&T) ने वित्त वर्ष 2023-24 में CSR पहलों पर 154.83 करोड़ रुपये खर्च किए
