Construction Sector Q4 Preview - Marked By Strong Execution; But Weak Project Awarding Continues: Nirmal Bang

Nirmal Bang Report

FY24 saw a slowdown in construction sector project awards due to policy guidelines and general elections impacting awarding until March 2024 (3,000 km versus 6,003 km in FY23).

Low project awarding has impacted order inflows for road construction companies. However, we expect awarding activity to strongly pick up post general elections.

Construction industry is expected to maintain buoyancy, driven by:

1. Bharatmala and Sagarmala Pariyojana,

2. Atal Mission for Rejuvenation and Urban Transformation,

3. Jal Jeevan Mission,

4. PM Gati Shaki Plan and

5. The government’s spending on infrastructure development.

Easing of raw material and commodity costs to improve margins YoY in Q4 FY24.

Key focus of companies will remain on orderbook diversification in Nonroad segments.

Enhanced execution capabilities by companies will support Revenue/Ebitda/profit after tax growth of 8.6%/15.6%/14.7% YoY for our coverage universe.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.