Latest News | Construction Sector Entities' Revenues to See 12-15 Pc Growth This Fiscal: ICRA
Get latest articles and stories on Latest News at LatestLY. India's construction sector entities' revenues are likely to grow by 12-15 per cent in the current financial year, while margins will expand by 25-50 bps, rating agency ICRA said on Monday.
New Delhi, Apr 29 (PTI) India's construction sector entities' revenues are likely to grow by 12-15 per cent in the current financial year, while margins will expand by 25-50 bps, rating agency ICRA said on Monday.
It further said that the government's infrastructure push will result in double-digit revenue growth for the construction industry in FY2025.
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The rating agency said it maintains a stable outlook on the sector with steady growth in operating income, moderate leverage, and healthy coverage metrics.
"The aggregate order book-to-sales ratio of ICRA's sample set of companies stood at around 3.9x as of December 2023 (compared to 3.4 times during March-2023), thereby indicating a healthy revenue growth prospect over the medium term," ICRA vice president and co-group head - corporate ratings Ashish Modani said.
He said, ICRA expects the revenue growth in FY2025 to remain healthy at 12-15 per cent on a year-on-year basis, albeit slightly lower than the 18-20 per cent revenue expansion assessed for FY2024, owing to high base and some tapering in execution momentum in Q1 FY2025 amid Parliamentary elections.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)