Higher govt capex help infra companies clock 17-20% revenue growth
ECONOMY & POLICY

Higher govt capex help infra companies clock 17-20% revenue growth

Higher government spending on infrastructure in FY24 will propel engineering, procurement, and construction companies to hit revenue growth of 17-20 per cent, taking their profit to the pre-Covid level, a report said on Tuesday.

In the Budget 2023-24, the government has increased the outlay for capital expenditure (capex) on infrastructure sector by 33 per cent from Rs 7.5 lakh crore to Rs 10 lakh crore.

Forecasting higher revenue and thicker bottom-line, rating agency Crisil in a report also placed their credit outlook positive citing improving debt metrics.

The optimism is supported by the expected strong order inflows due to the government thrust on infrastructure in the latest budget.

Profitability of large EPC (engineering, procurement, and construction) companies is seen improving and reaching pre-pandemic levels of 10-10.5 per cent next fiscal compared to 9-9.5 per cent this fiscal, with commodity prices easing.

With healthy order books and recovery in profitability, debt metrics will also improve next fiscal as higher order inflows will boost their top-line to the tune of 17-20 per cent in fiscal 2024, up from 13-15 per cent estimated this fiscal, said the report which is based on an analysis of 80 EPC companies with aggregate revenue of Rs 2.33 lakh crore.

The revenue growth of most of the EPC players is driven by the rise in capital outlay by the Centre, public sector undertakings and states for the infrastructure segment and the corresponding construction intensity in each of the infrastructure segments.

Also Read
Air India to buy 250 planes from Airbus, 220 from Boeing
Holcim opens its first calcined clay unit in France

Higher government spending on infrastructure in FY24 will propel engineering, procurement, and construction companies to hit revenue growth of 17-20 per cent, taking their profit to the pre-Covid level, a report said on Tuesday. In the Budget 2023-24, the government has increased the outlay for capital expenditure (capex) on infrastructure sector by 33 per cent from Rs 7.5 lakh crore to Rs 10 lakh crore. Forecasting higher revenue and thicker bottom-line, rating agency Crisil in a report also placed their credit outlook positive citing improving debt metrics. The optimism is supported by the expected strong order inflows due to the government thrust on infrastructure in the latest budget. Profitability of large EPC (engineering, procurement, and construction) companies is seen improving and reaching pre-pandemic levels of 10-10.5 per cent next fiscal compared to 9-9.5 per cent this fiscal, with commodity prices easing. With healthy order books and recovery in profitability, debt metrics will also improve next fiscal as higher order inflows will boost their top-line to the tune of 17-20 per cent in fiscal 2024, up from 13-15 per cent estimated this fiscal, said the report which is based on an analysis of 80 EPC companies with aggregate revenue of Rs 2.33 lakh crore. The revenue growth of most of the EPC players is driven by the rise in capital outlay by the Centre, public sector undertakings and states for the infrastructure segment and the corresponding construction intensity in each of the infrastructure segments. Also Read Air India to buy 250 planes from Airbus, 220 from Boeing Holcim opens its first calcined clay unit in France

Related Stories

Gold Stories

Next Story
Real Estate

Anshul Singhal launches Vantrock with Rs 42 billion development plan

Real estate professional Anshul Singhal has launched Vantrock Real Assets Private Limited (VRAPL), a Mumbai-headquartered platform focused initially on warehousing, industrial and logistics parks. The company plans to develop approximately 11.5 million sq ft of assets, with an estimated gross development value (GDV) of Rs 42 billion (approximately USD 434 million) on completion.The first phase will cover around 3 million sq ft across the National Capital Region (NCR), Bengaluru and Pune, with an estimated development value of Rs 11 billion (approximately USD 113 million). Construction is sched..

Next Story
Infrastructure Transport

Afcons wins CII award for biodiversity management

Afcons Infrastructure has received the Confederation of Indian Industry (CII) National Award for Environmental Best Practices 2026 in the Biodiversity Management category for its work on the Mumbai-Ahmedabad High Speed Rail Project’s C-2 package.The award was presented at a ceremony in Chennai on 9 October 2026. It was received by Mihir Mishra, Vice-President, CPE, and Sumon Paul, Assistant General Manager, HSE, along with the Afcons team.The project adopted several resource recovery and waste management practices. These included recycling concrete washout waste to recover sand, aggregates a..

Next Story
Technology

Indian businesses lead globally in planned AI investment, says Autodesk

Indian organisations are moving towards deeper integration of artificial intelligence (AI), digital technologies and sustainability into business operations, according to Autodesk’s 2026 State of Design & Make report. The fourth edition of the annual study highlights growing AI adoption, measurable outcomes from digital transformation and the role of sustainability in long-term business growth.The report found that 64 per cent of Indian organisations are approaching or have achieved their current AI goals. While 88 per cent believe AI will enhance their industry, up from 78 per cent in 2..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code