Pick up in execution coupled with rich order inflows will aid recovery in the EPC (engineering, procurement and construction) sector, a report said.
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.
