Construction Sector Q1 Preview - Limited Impact Of Second Covid-19 Wave On Execution: Nirmal Bang

Workers rest near a construction site at the Rajpath in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)

Construction Sector Q1 Preview - Limited Impact Of Second Covid-19 Wave On Execution: Nirmal Bang

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Q1 FY22 will be a mixed quarter for construction companies as execution is likely to pick up pace from weak base of last year. But, the second Covid-19 wave is likely to limit recovery in execution.

We foresee only a limited impact of lockdowns imposed by various states in April and May 2021 on execution in Q1 FY22.

Labour availability was down and there were sand availability issues in certain states - the same would not halt construction progress, in our opinion.

Given the sharp rise in cement, steel and labour costs, we expect some negative impact on margins in Q1 FY22.

For most companies, we are expecting Ebitda margin to be at the lower end of their guidance.

Click on the attachment to read the full report:

Nirmal Bang Construction Sector-Q1FY22 Results preview- 7 July 2021.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.