The Narendra Modi government has been aggressively pushing for the infrastructural development in the country, which had led to the doubling of the pace of road construction in the last four years.
Moreover, the government’s spending on road construction is expected to push the annual growth in revenue of road construction companies to 20% till 2020, rating agency CRISIL said in a report.
“We expect topline growth for these companies to sustain at 20% in this fiscal and the next two, backed by strong order-books,” said Sachin Gupta, Senior Director, CRISIL.
The report studied 66 companies that that account for huge debt in the sector. “Together, these companies are estimated to have an order book of Rs 1.3 lakh crore last fiscal, which, at over 3 times the revenues of these companies in fiscal 2018, provides high revenue visibility.” Read More
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