Construction entities’ revenues to grow by 12-15% in FY2025: ICRA Housing.com
Rating agency ICRA expects the construction industry in India to maintain a healthy revenue growth momentum in FY2025 with a projected YoY growth of 12-15% in FY2025 after witnessing a stellar 18-20% revenue growth in FY2024e. The Government’s thrust on infrastructure is reflected in its increase in capex allocations to Rs 11.1 trillion (+16.9% YoY) in FY2025 budget estimates (BE), which augurs well for the sector. ICRA maintains a Stable outlook on the sector with steady growth in operating income, moderate leverage, and healthy coverage metrics.
Giving more insights on this, Ashish Modani, vice-president and co-group head-corporate ratings, ICRA, said: “The aggregate order book-to-sales ratio of ICRA’s sample set of companies stood at around 3.9x as of December 2023 (compared to 3.4 times during March-2023), thereby indicating a healthy revenue growth prospect over the medium term. ICRA expects the revenue growth in FY2025 to remain healthy at 12-15% on a YoY basis, albeit slightly lower than the 18-20% revenue expansion assessed for FY2024e, owing to the high base and some tapering in execution momentum in Q1 FY2025 amid the Parliamentary Elections”.
