Construction firms to post double digit Q4 growth
22 Apr 2010
Mumbai: Construction and building firms are expected to post double digit growth in Jan-March as an economic rebound and government spending boosts realty sector, industry experts and analysts said.
Between 2007 and 2012, India plans to spend $514 billion -- with private firms contributing 36 per cent -- to overhaul its inadequate infrastructure that is an obstacle to achieving faster growth in Asia's third-largest economy.
India's 2010-11, budget allocated 46 per cent of the total plan allocation amounting to 17 trillion rupees for infrastructure development in the country.
"Normally, Jan-March is always the strongest quarter for construction companies," Shailesh Kanani, an analyst with Angel Broking said, adding that the order inflow "has been good".
Kotak Securities, in its report, said strong order backlogs will drive revenue growth for construction sector.
HCC's order book should drive revenues up 22 per cent over fiscal 2010-2012, Motilal Oswal said in a report.