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

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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

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