Ind-Ra maintains neutral outlook on construction sector for FY25
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Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a neutral outlook on the construction sector for FY25, while maintaining a deteriorating sub-sector outlook for roads engineering, procurement and construction (EPC).
According to the rating agency, EPC players are likely to post a healthy performance in FY25, albeit with a moderation in the revenue growth rate, accompanied with a modest uptick in operating margins while maintaining adequate liquidity buffers.
Krishan Binani, Director, Corporate Ratings, Ind-Ra said that the neutral sector outlook is backed by an expectation of 10%-12% year on year (YoY) revenue growth in FY25. Order inflows are likely to pick up in H2 FY25, led by supportive government budgets along with expectation of acceleration of private sector’s capex. He also noted that margins are expected to modestly pick-up with credit metrics improving further.
