ADVERTISEMENT

Engineering & Construction Sector Check - Government Spending Slows As Orders Pick Up In December: Systematix

Engineering & Construction Sector Check - Government Spending Slows As Orders Pick Up In December: Systematix

<div class="paragraphs"><p>A crane transports steel reinforcement rods at a residential apartment construction site. (Photographer: Milan Jaros/Bloomberg)</p></div>
A crane transports steel reinforcement rods at a residential apartment construction site. (Photographer: Milan Jaros/Bloomberg)

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.

Systematix Research Repo

This report is a monthly update on project tendering and awarding activity in the infrastructure space, high-frequency macro data and government capex. We assess the trends witnessed in December 2021 below.

  • Tendering activity in Dec-21 was up 17% YoY, while trailing-twelve-months tenders were up 22% YoY on a low base. In FY19, the average monthly run-rate of tender value was Rs 765 billion, which declined to around Rs 584 billion thereafter. In comparison, Dec-21 tenders were at Rs 1.02 trillion.

  • Over the past 12 months, the tender pipeline has been strong for roadways (up 28% YoY), community services (up 30% YoY), water supply (up 12% YoY) and hospitals (up 75% YoY), while railways (up 6% YoY) and irrigation (down 12% YoY) are amongst the large sectors that have disappointed.

  • The awarding activity in Dec-21 was up 6% YoY, while on a trailing-twelve months basis, awards were up 54% YoY and about 12% higher than FY19, as the base effect continued to benefit comparisons.

Click on the attachment to read the full report:

Systematix Infra Monthly January 2022.pdf

DISCLAIMER

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.