Mumbai: Engineering and construction major Larsen & Toubro (L&T) is in the process of bringing in equity in its infra development arm within the next three months.

"We are in the process for bringing equity into our infra development company. Hopefully, we will do it in the next two to three months. We will also bring in more equity for the Dhamra project, which will also happen this fiscal," L&T Group Chairman and Managing Director A M Naik said.

Naik, who will become Executive Chairman of the Group from October, was speaking at the L&T AGM here.

Stating that raising fresh equity will depend on valuation, he said new capital will come from unlocking value.

On margins, Naik said the objective of the company was to utilise its capacity to the fullest and the target is to post 16-18 per cent return on capital employed.

About selling of small businesses, he said the company will concentrate on core businesses and sell small ones.

Replying to a question on consolidated debt, he said L&T is exploring opportunities to raise money by diluting its holding in subsidiaries and other associated companies.

"But, our debt to equity ratio is well within industry standards. Our focus is on return on capital, debt to equity ratio and higher enterprise value."

On the slowdown in the power sector, the Group's core business space, Naik said the present situation will not continue in the future.

He expressed the hope that five to six tenders will come up in the power sector and "we hope that we will have success by December".

For the first quarter, L&T reported a better-than- expected 15.7 per cent rise in net income at Rs 863.6 crore on higher sales, which rose 26 per cent to Rs 11,956.36 crore, up from Rs 9,482.11 crore in the same period last year. The company's order inflow in the April-June period rose 21 per cent to Rs 19,594 crore.