Awarding momentum to continue, supported by high-value expressway projects. Execution to also improve to 32-34 km per day, but will remain below the all-time high of 36 km per day in fiscal 2021
Healthy order books will support engineering, procurement and construction (EPC) players’ revenue growth of 13-15%. However, bidder aggressiveness in hybrid annuity models (HAM) and rising input prices will dampen margins – expected to shrink 200-250 basis points (bps)
Credit profiles are healthy with TOL/TNW (total outside liability/total net worth) at less than 1.5x and interest cover of over 3.0x; working capital cycle may marginally lengthen
High Wholesale Price Index (WPI) inflation may prove to be a blessing in disguise for toll road operators, boosting toll collection growth
Analytica