Indian EPC firms could see order inflows moderate from Q4 - India Ratings

Kalpataru Projects International

11/12/2023 10:23

** Order momentum for Indian engineering, procurement and
construction (EPC) companies could moderate from Q4 - India
Ratings and Research 
    ** Order award activity has halved in 7 months of FY24 in
highway sector, India Ratings says; flags, overall awards could
undershoot expectations in FY24  
    ** Says lull setting in due to general elections,
potentially lowering revenue visibility for FY25
    ** Road sector could face muted revenue growth in 2HFY24,
while margins may ease from historical averages on competitive
pressure - India Ratings 
    ** Adds, fourth-quarter operations could be hit by
unavailability of adequate labour amid elections
    ** Says EPC sector EBITDA margins to improve in H2; gains
limited to 30-40 bps for FY, versus initial expectation of 100
bps

 (Reporting by Sethuraman NR)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))