The road ministry’s efforts to improve the financial health of road companies in the country have paid off. According to ratings agency Crisil, credit profile of road engineering, procurement and construction (EPC) companies have shown a sharp turnaround.
The Crisil report added that these road EPC companies are set for 15% topline growth in current financial year.
“Driven by the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI), over 80% of the highway projects in the past three years have been bid out under the hybrid – or engineering, procurement, construction (EPC) – model. Not surprisingly, 50 road EPC companies rated in the investment-grade by Crisil, have benefited from the trend and delivered 20% compounded annual growth in revenue in the past three years,” the report said. Read more