New Delhi, July 31 (IANS) Riding on the government’s big infrastructure drive, the construction sector in the country is estimated to grow 12-15 per cent in FY25, a report said on Wednesday.
The government has kept FY25 capex outlay at Rs 11.11 lakh crore, higher than last year’s revised estimate of Rs 9.5 lakh crore.
According to credit rating agency ICRA, Indian construction entities will maintain healthy revenue growth this fiscal, aided by an adequate order book position and the government’s thrust on infrastructure activity.
“The aggregate order book-to-sales ratio of a sample set of companies remained stable at 3.3 times as of March 2024 (3.4 times during March 2023), thereby indicating healthy revenue growth prospects over the medium term,” said Chintan Lakhani, Vice President and Sector Head-Corporate Ratings, ICRA.
Certain construction entities have witnessed pressure on road sector-related order inflows in FY2024, in the backdrop of muted order awarding from the Ministry of Road Transport and Highways.
“However, diversification into other segments like drinking water, metro segment, or railway station development has helped them sustain their order book. ICRA expects the revenue growth to remain healthy at 12-15 per cent in FY25,” the credit rating agency maintained.
Over the past five years ending March 2024, the order book of the rating agency’s sample construction companies has remained between 3.3-4 times of operating income, supported by the government’s increased capital outlay towards the infrastructure sector.
The Budget has allocated a massive Rs 11.11 lakh crore for the infrastructure sector comprising highways, ports, railways and power plants, and plans to continue with this plan for the next five years to accelerate growth and create more jobs.
Meanwhile, the National Highways construction increased by 3 times from 11.7 km per day in FY14 to 34 km per day by FY24 while capital expenditure on Railways has increased by 77 per cent in the last five years.
In FY24, new terminal buildings at 21 airports have been operationalised which has led to an overall increase in passenger handling capacity by approximately 62 million passengers per annum.
–IANS
na/dan
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by TodayIndia.news and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of TodayIndia.news We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, TodayIndia.news takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
