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.

ICRA expects the new order inflows for construction companies to remain healthy in FY2022.

“However, delays in land acquisition, funding issues, and state government priorities remains key risks to the new order inflows.”

“The order inflows from non-infrastructure segments like industrial and real estate is expected to remain muted, with weak private sector capex growth.”

Furthermore, strong operating profitability is expected to remain stable with the benefits of improved execution scale; though this would also be dependent on any steep variation in key raw material and labour cost and increased competitive intensity.

“The working capital cycle for the larger construction players has remained at higher level in the past, owing to slow realization of receivables, and slow-moving legacy projects.”

“This has been met partly by higher creditors, thus percolating to sub-contractor’s working capital cycle as well. Some of the recent measures taken by the Central Government are helping companies involved in such projects by way of faster bill realisation and lower Bank Guarantee (BG) requirements.”

Source: IANS

Sponsors Posts

Nirman Nagar Kajarwara Jabalpur by One Realty Developers -

Nirman Nagar Kajarwara Jabalpur by One Realty Developers -

Reliability, Quality, Assurance, and Authenticity have always been pillars of One Realty Developers. Reaching new heights every year and catering to the masses ever since 2011, we bring you NIRMAN NAGAR a 9 Acres affordable housing Township in Kajarwara just 4.8 km from Sadar.

In NIRMAN NAGAR we bring you an array of affordable housing options to choose from Plots, 2 BHK singlex, and 4 BHK duplex. Three beautifully landscaped gardens with amenities like a children’s play area, water fountain, and a badminton court.

The drainage system is Hi-tech and fully underground so are the security and surveillance system in the township. This RERA-approved township has tie-up with all major banks for the finance facility. We believe that the cornerstone of any great structure is a great idea and that one of the greatest joys of life is to see your idea brought to life before your own eyes. This is the Endeavor One Realty Developers undertake, to bring your ideas from abstract concept to solid reality.

Singlex & Duplex Specification

FRAMEWORK RCC framed structure. SUPERSTRUCTURE Conventional brick masonry.

DOORS Main Door – Teak wood frame & shutter. Internal Doors – Sal wood frame and Flush door, PVC door for the toilet.

WINDOWS Anodized aluminum windows with grills.

FLOORING Vitrified tiles flooring with skirting in living/dining and all bedrooms. Anti-skid ceramic tile flooring in toilets, balconies, and utility areas. Paver blocks for car portico.

KITCHEN Granite countertop with ceramic tile dado up to 2 feet above the counter and stainless steel sink (Single bowl, single drain) Ceramic tile cladding in the wash area. Provision of the aqua guard water point.

WALL FINISHES All interior walls with a smooth finish and Acrylic emulsion paint over Birla / JK cement putty. All exterior walls with cement-based exterior paint of Apex or equivalent. Plaster of Paris / molding work in drawing and dining area.

TOILETS/ BATHS European WC’s washbasins of Hindware / Parryware or equivalent make. Provision for a shower in toilets.

POWER Concealed copper wiring of standard make. Power plugs in all necessary areas. Electrical fittings and fixtures of Anchor / Roma or equivalent make. Provision of points for the electric chimney, exhaust fans in kitchen bathrooms, air conditioners in rooms.

COMMUNICATIONS Telephone &Internet points in the living room. CABLE Provision for cable TV in the living room and all bedrooms.

For more details please click here or visit

Current Projects of One Realty Developers
Nirman Nagar Jabalpur, Kajarwara, Jabalpur

Projects Delivered by One Realty Developers
Aura City Jabalpur, Barela, Jabalpur
Nirvana City Jabalpur, Barela, Jabalpur
Gulmohar Greens Jabalpur, Barela, Jabalpur
Nirvana Exoticaa Jabalpur, Nirvana Exoticaa – Phase 1 & 2, Barela, Jabalpur

For more details please click here or visit


Please enter your comment!
Please enter your name here