Construction Mirror Article detail

The government’s keenly focused on infrastructure development and this lead to pre healthy orders and this is going to boost Indian Construction companies with a revenue growth till FY25, with a projected year-on-year according to an ICRA report. According to the official data of ICRA sample set, the combined order book-to-sale ratio of the companies indicates strong medium-term prospects for revenue growth.

Chintan Lakhani, Vice President & Sector Head-Corporate Ratings (ICRA), stated that “Fresh order inflows remained modest during Q1, FY25, particularly due to General Elections, very similar to FY20 election period

The order-awarding activity has picked up from Q2 FY25 onwards in spite of the fact that the order inflows in FY25 are likely to slightly match those seen in FY24.

The order inflows in the road segment have remained muted over the last three-four quarters. However other segments like urban infrastructure, sewage treatment projects, and drinking water.”

As a result, operating margins are predicted to remain stagnant at around 11% +25 basis points in FY25, in spite of strong revenue growth and the benefits of operating leverage. With a constant increase in operating income, reasonable leverage, and comfortable coverage ratios, ICRA still maintains a positive outlook for the industry.