Construction Sector Results
ECONOMY & POLICY

Construction Sector Results

The Indian construction sector demonstrated both growth opportunities and notable challenges in the first half of FY2024-25, driven by a mix of economic, operational and policy factors. The sector’s total consolidated operating revenue across all segments (Ultra Large, Large, Medium, and small construction companies) reached approximately Rs.70,871 crore in H1 FY25, compared to Rs.67,126 crore in H1 FY24, reflecting a year-on-year growth of about 5.6 per cent. When including Larsen & Toubro (L&T), the largest player in  the sector, revenue rises to Rs.1,39,350 crore, representing a  11 per cent growth over H1 FY24. Similarly, the profit for H1 FY25 stands at Rs.7,281 crore when including L&T, compared to Rs.3,981 crore without it. These figures underline L&T’s outsized contribution, accounting for nearly 16 per cent of total revenue and 68 per cent of the sector’s profits in H1 FY25.

While Ultra Large companies like L&T demonstrated robust growth and profitability, the industry faced mixed profitability trends overall. Excluding L&T, the sector recorded a total profit of Rs.2,326.73 crore in H1 FY25, compared to a loss of Rs.520.89 crore in H1 FY24, indicating a notable improvement. This disparity highlights L&T’s stabilising influence, which helps mask the volatility and losses incurred by smaller players, such as Tata Projects and Jaiprakash Associates, which reported significant losses. The overall financial health indicates resilience bolstered by government spending and infrastructure investments, yet profitability pressures persist, emphasising the need for cost management and efficient project execution...

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The Indian construction sector demonstrated both growth opportunities and notable challenges in the first half of FY2024-25, driven by a mix of economic, operational and policy factors. The sector’s total consolidated operating revenue across all segments (Ultra Large, Large, Medium, and small construction companies) reached approximately Rs.70,871 crore in H1 FY25, compared to Rs.67,126 crore in H1 FY24, reflecting a year-on-year growth of about 5.6 per cent. When including Larsen & Toubro (L&T), the largest player in  the sector, revenue rises to Rs.1,39,350 crore, representing a  11 per cent growth over H1 FY24. Similarly, the profit for H1 FY25 stands at Rs.7,281 crore when including L&T, compared to Rs.3,981 crore without it. These figures underline L&T’s outsized contribution, accounting for nearly 16 per cent of total revenue and 68 per cent of the sector’s profits in H1 FY25.While Ultra Large companies like L&T demonstrated robust growth and profitability, the industry faced mixed profitability trends overall. Excluding L&T, the sector recorded a total profit of Rs.2,326.73 crore in H1 FY25, compared to a loss of Rs.520.89 crore in H1 FY24, indicating a notable improvement. This disparity highlights L&T’s stabilising influence, which helps mask the volatility and losses incurred by smaller players, such as Tata Projects and Jaiprakash Associates, which reported significant losses. The overall financial health indicates resilience bolstered by government spending and infrastructure investments, yet profitability pressures persist, emphasising the need for cost management and efficient project execution...To read the full article Click Here

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