A Rate Cut will Al­low In­fra Firms to Step on the Gas

Lower rates to help firms that are mak­ing losses be­cause of high in­ter­est ex­penses de­spite strong or­der book & revenue vis­i­bil­ity

The Economic Times - - Smart -

In­tel­li­gence Group: Ex­pec­ta­tions of a rate cut are run­ning high as the mone­tary pol­icy will be an­nounced on Wed­nes­day. ETIG has culled out a list of in­fra­struc­ture com­pa­nies whose rev­enues have con­sis­tently grown in the past three years, but be­cause of high in­ter­est ex­penses, earn­ings have been un­der pres­sure.


It has an or­der book of ₹ 4,579 crore of which over two-third is still to be ex­e­cuted, which adds to the revenue vis­i­bil­ity. A large part of this or­der book is in roads and ir­ri­ga­tion seg­ments.


IRB has an or­der book of over ₹ 12,011 crore. It is one of the few play­ers, which are known for su­pe­rior ex­e­cu­tion. It has 11 op­er­a­tional and 11 un­der con­struc­tion, or par­tial tolling road, projects. The com­pany has con­struc­tion or­der book of ₹ 6,220 crore. In ad­di­tion, through hy­brid an­nu­ity model (HAM), it has con­struc­tion or­der book of ₹ 1,600 crore. On the con­struc­tion side, the com­pany has an or­der book of ₹ 6,829 crore. Its sub­sidiary Sadb­hav In­fra­struc­ture Projects has 12 road projects, which are gen­er­at­ing toll revenue. It has fo­cused on ef­fec­tive cost man­age­ment. It has a con­struc­tion or­der book of ₹ 5,750 crore, which spreads across sec­tors such as ir­ri­ga­tion, marine and ur­ban.

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