‘Ind-Ra expects roads, buildings, railways and irrigation related segments to see major order inflows in FY22, backed by rich budgetary allocations
Pick up in execution coupled with rich order inflows will aid recovery in the EPC (engineering, procurement and construction) sector, a report said on Tuesday.
India Ratings and Research (Ind-Ra) has published the 9MFY21 edition of its credit news digest on the domestic EPC sector.
‘Order book revenue visibility increased 3.1x the revenue on trailing twelve-month basis due to higher order allocations in almost all segments.
‘Ind-Ra expects roads, buildings, railways and irrigation related segments to see major order inflows in FY22, backed by rich budgetary allocations,’ it said in a statement.
It said in its report that revenue as reported by the top 18 listed construction companies excluding Larsen & Toubro Limited declined 12.2 per cent y-o-y majorly due to the impact of COVID-19 and nationwide shutdown of construction activities in the first quarter of the last fiscal.
With the increase in execution rates in the fourth quarter of the just-concluded fiscal, Ind-Ra said it believes the overall revenue would decline by 4 per cent in FY21, followed by growth of 15-20 per cent y-o-y in FY22.