EPC firms see jump in government orders
RAILWAYS & METRO RAIL

EPC firms see jump in government orders

The pandemic resulting in a drab June quarter, the order books are now seeing a rise in orders. The order books of the top Engineering, Procurement, and Construction (EPC) firms are currently experiencing a high tide, with the higher government lavishly expending in the infrastructure of the country.

Major EPC firms like Larsen & Toubro had an order book of nearly Rs 2.99 trillion at the end of September. They have acquired abundant contracts in the railway and transit systems. Dilip Buildcon, a distinguished name in the EPC arena, experienced a growth of 27% in their order book from last year. Other firms like Kalpataru group company, which deals with transmission lines, roadways, and bridges, saw a jump of 46% in their order books.

L&T says its Q2 has been more fruitful than Q1, with a 19% rise in the wins. Orders are essentially being released from the infrastructure expenditure, especially in water, power transmission, metro rails & railways, roads, and expressways.

Fortunately, after a weak span of ordering in the FY19 and FY20, this jump in the order books has compensated for the dry spell. The order books of EPC firms are showcasing about three-times their annual revenue. There is visible growth in the infrastructure projects of railways, mining, and irrigation.

Recovering from the pandemic, fresh investments were seen in the months of July and September, of 67.2% in terms of new projects and 107.1% rise in terms of the quarter-to-quarter basis projects. Collectively, 2,219 new projects involving an investment of Rs 2 .19 trillion were declared in Q2, from that of the 1,372 projects worth Rs 1.05 trillion during Q1.

  • The NHAI awarding has been 50% higher in the first six months of the fiscal year, as compared to the awarding during the same period.
  • NHAI has been the illuminating source of awarding for the EPC firms with them awarding 1,330km of highways in the fiscal first half, which was 1.6 times FY20 and 3.5 times FY19 levels.

ICRA, the credit rating agency, said in a report last month that the Union Government will continue to spend on infrastructure at the current pace since its positive multiplier effect is observed on the economy. There are chances of significant jumps in the orders from the government to the EPC firms.

The pandemic resulting in a drab June quarter, the order books are now seeing a rise in orders. The order books of the top Engineering, Procurement, and Construction (EPC) firms are currently experiencing a high tide, with the higher government lavishly expending in the infrastructure of the country. Major EPC firms like Larsen & Toubro had an order book of nearly Rs 2.99 trillion at the end of September. They have acquired abundant contracts in the railway and transit systems. Dilip Buildcon, a distinguished name in the EPC arena, experienced a growth of 27% in their order book from last year. Other firms like Kalpataru group company, which deals with transmission lines, roadways, and bridges, saw a jump of 46% in their order books.L&T says its Q2 has been more fruitful than Q1, with a 19% rise in the wins. Orders are essentially being released from the infrastructure expenditure, especially in water, power transmission, metro rails & railways, roads, and expressways. Fortunately, after a weak span of ordering in the FY19 and FY20, this jump in the order books has compensated for the dry spell. The order books of EPC firms are showcasing about three-times their annual revenue. There is visible growth in the infrastructure projects of railways, mining, and irrigation. Recovering from the pandemic, fresh investments were seen in the months of July and September, of 67.2% in terms of new projects and 107.1% rise in terms of the quarter-to-quarter basis projects. Collectively, 2,219 new projects involving an investment of Rs 2 .19 trillion were declared in Q2, from that of the 1,372 projects worth Rs 1.05 trillion during Q1. The NHAI awarding has been 50% higher in the first six months of the fiscal year, as compared to the awarding during the same period. NHAI has been the illuminating source of awarding for the EPC firms with them awarding 1,330km of highways in the fiscal first half, which was 1.6 times FY20 and 3.5 times FY19 levels. ICRA, the credit rating agency, said in a report last month that the Union Government will continue to spend on infrastructure at the current pace since its positive multiplier effect is observed on the economy. There are chances of significant jumps in the orders from the government to the EPC firms.

Next Story
Products

Viva ACP Launches FR A1-Rated Honeycomb Panels for Fire Safety

Viva, Asia’s largest manufacturer and supplier of aluminium composite panels (ACP) introduced its FR A1-rated Honeycomb Panels, setting a new industry benchmark for fire safety and architectural excellence. Engineered to deliver exceptional performance, these panels combine advanced fire-resistance technology with aesthetic versatility, offering a revolutionary solution for safety-critical environments.The FR A1 rating represents the highest standard of fire resistance under the European Standard EN 13501-1, signifying non-combustibility and zero contribution to fire, smoke, or toxic emissio..

Next Story
Real Estate

Almal Real Estate Expands into Commercial, Global Markets

Almal Real Estate Development is soon to announce its upcoming expansion into new verticals and international markets as part of its strategic growth plans for 2030. The company, known for its innovative luxury residential and hospitality developments, is preparing to diversify into the commercial sector with the introduction of The Smart Space, a network of business centers in UAE featuring five-star amenities. Additionally, Almal is entering new markets in Bali and Thailand as a community developer, focusing on villa and townhouse projects.The expansion into the commercial real estate sector..

Next Story
Infrastructure Urban

NABARD Approves Rs 9.03 Billion for 127 Projects in Himachal

The Himachal Pradesh government has secured approval from the National Bank for Agriculture and Rural Development (NABARD) for 127 projects worth Rs 9.03 billion for the 2024-25 fiscal, Chief Minister Sukhvinder Singh Sukhu announced. During a meeting with MLAs from Kangra, Kullu, Kinnaur, Solan, Chamba, Bilaspur, and Lahaul-Spiti districts to discuss priorities for the 2025-26 budget, Sukhu said the approved projects include 50 MLA-priority schemes under the Public Works Department, valued at Rs 4.12 billion, and 23 MLA-priority schemes under the Jal Shakti Vibhag, costing Rs 1.79 billio..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?