Wednesday, September 06, 2006
Order book to touch Rs.50,000 crore
An Edelweiss report on the Indian construction sector released earlier this week estimated that the aggregate order book for the industry was expected to grow by 20 per cent Y-O-Y to Rs.50,000 crore in the current fiscal.
"Backed by the robust growth in order book throughout FY 2006, the construction industry saw a strong Y-O-Y growth in the first quarter of FY07," it said in the report based on a survey conducted among 15 construction companies, including eight rated ones.
Edelweiss estimated that revenues of the sector were likely to grow by 48 per cent this year over the previous year.
Earnings too are set for a whopping 62 per cent growth in the current year, it said.
Maintaining that industry players are now adequately sensitised to volatility in the prices of raw materials, it said increased caution was likely to keep focus on operating margin.
"We see profitability scenario intact to a large extent against such price fluctuations with built-in price-escalation clauses and committed raw material supply agreements with customers," it added.
The infrastructure sector of the construction industry, which exhibited robust growth over the previous three years till FY 06, is also expected to be on the similar strong growth trajectory for another two years, it said. - PTI
