iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Q3FY24 Review: Infrastructure: Awarding critical for growth now

15 Feb 2024 , 03:29 PM

Q3FY24 was a mixed quarter with larger under execution order books driving faster growth for HGInfra, Ashoka, NCC and Powermech while others suffered. Incrementally, pick up in highway awards is now critical with little clarity on timing despite a large pipeline. Diversified players like NCC, Powermech are better placed vs road contractors. We continue to like Ashoka as well. Pick up in awards with reasonable competition would be a key trigger for rerating of other names like KNRC, PNC, GR Infra. 

Divergence in OB dictating revenue growth: 

Q3FY24 was a mixed bag in terms of revenue growth for mid cap EPC players with divergence in order inflow and order book trends reflecting in variations in growth & margins. HG Infra, Ashoka, NCC and Powermech posted healthy growth YoY backed by large order books even as growth was subdued for others. Margins were relatively stable (except for GR Infra) with pressure from RM fading but that from orders won amidst intense competition still hurting. 

Pick up in highway awarding critical for growth visibility: 

Book to bill ratio on trailing 12m revenues continued to weaken for highway contractors (GR saw a rise due to 10% fall in 9M revenue). Commentary by managements varied with some being confident on an uptick before model code of conduct kicks in while others betting on awards only post new government. Large pipeline of ~46,000 km provides comfort but competition remains intense. Almost all are open to bidding for BOT (Toll) projects highlighting more conducive contract terms. 

Diversified names like NCC and Powermech are better placed: 

NCC has benefited from healthy awarding with book to bill of 3.4x providing much stronger growth visibility over the medium term even as govt’s infra capex allocation sees a shift. We prefer both these over the road focused contractors. Ashoka Buildcon too is preferred pick given relatively better multiple.

Related Tags

  • Infrastructure
sidebar mobile


12 Apr 2024   |   01:37 PM
12 Apr 2024   |   10:20 AM
12 Apr 2024   |   10:16 AM
Read More

Most Read News

12 Apr 2024   |   08:25 PM
12 Apr 2024   |   08:14 PM
12 Apr 2024   |   08:13 PM
12 Apr 2024   |   08:13 PM
12 Apr 2024   |   08:08 PM
Read More
Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.


Get better recommendations & make better investments

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp