Adequate order book to boost construction companies’ FY22 performance: ICRA

New Delhi, Jan 5 : Adequate order book position, along with strong pipeline of projects and government measures, are expected to boost construction companies’ performance in FY22, ICRA said on Tuesday.
The ratings agency said the outlook on the construction sector in FY22 is stable and credit profile of players are likely to recover after weakening in FY21.
Besides, ICRA pointed out that investments planned under the National Infrastructure Pipeline will be key growth drivers for the sector.
“While the pandemic-related uncertainties continue to remain, execution has recovered sharply in the last few months.
“ICRA expects the pace of execution to improve over the medium term, supported by adequate orders in hand as well as the recent measures taken by the government,” it said.
As per the ratings agency, the order book position of most construction players is currently adequate, which provides medium term revenue visibility.