India Infra Sector Check - Government Spending, Order Pick Up Evident Since June: Systematix

Workers labor on a construction site. (Photographer: Sara Hylton/Bloomberg)

India Infra Sector Check - Government Spending, Order Pick Up Evident Since June: Systematix

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 Report

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 August 2021 below.

  • Tendering activity in August 2021 was up 40% YoY, while trailing-twelve-months tenders were up 32% YoY on a low base.

  • In FY19, the average monthly run-rate of tender value was Rs 765 billion, which declined to around Rs 545 billion thereafter. In comparison, August-21 tenders were at Rs 616 billion.

  • Over the past 12 months, the tender pipeline has been strong for roadways (up 56% YoY), community services (up 56% YoY), water supply (up 23% YoY) and hospitals (up 58% YoY), while railways (down 19% YoY) is amongst the large sectors that have disappointed.

Click on the attachment to read the full report:

Systematix Infra Monthly August 2021.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.

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