Construction Sector – Budget Spotlight

What To Expect From The IT Sector

What To Expect For The Construction Sector

Spotlight: Construction Sector

by Teena Virmani, Research Analyst

Spotlight: Construction Sector

by Teena Virmani, Research Analyst

•We’ll start on a positive note. With higher budgetary allocations in different segments such as roads, irrigation, urban infra, ports, airports, power etc., we expect Union Budget 2012-13 to be positive for the infrastructure sector •Since the last 2 years, order inflows for the construction sector have continued to remain subdued due to issues related to policy paralysis, delays in environmental clearance and land acquisition. Steep increase in interest rates coupled with lack of fund raising by the companies, also deteriorated the balance sheet of companies

•We’ll start on a positive note. With higher budgetary allocations in different segments such as roads, irrigation, urban infra, ports, airports, power etc., we expect Union Budget 2012-13 to be positive for the infrastructure sector •Since the last 2 years, order inflows for the construction sector have continued to remain subdued due to issues related to policy paralysis, delays in environmental clearance and land acquisition. Steep increase in interest rates coupled with lack of fund raising by the companies, also deteriorated the balance sheet of companies

•We thus expect budget to address issues such as order inflows across various segments, faster land acquisition and environmental clearances •Going forward, we also expect infrastructure companies to benefit positively in terms of higher order inflows •Key beneficiaries from higher order inflows in roads, irrigation and urban infra are expected to be IRB Infra, IVRCL, NCC, Pratibha Industries and Unity Infraprojects

•We thus expect budget to address issues such as order inflows across various segments, faster land acquisition and environmental clearances •Going forward, we also expect infrastructure companies to benefit positively in terms of higher order inflows •Key beneficiaries from higher order inflows in roads, irrigation and urban infra are expected to be IRB Infra, IVRCL, NCC, Pratibha Industries and Unity Infraprojects

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