Infra Monthly Update - Government Spending, Orders Pick-Up But Still Below FY19 Levels: Systematix
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Systematix Research Report
This report is a monthly update on project tendering and awarding activity in the infrastructure space, high-frequency macro data and monthly government capex. We assess the trends witnessed in May 2021 below.
Tendering activity in May-21 was down 9% YoY, while trailing-twelve-months tenders were up 31% YoY on a low base.
In FY19, the average monthly run rate of tender value was Rs 765 billion, which has come down to around Rs 530 billion after FY19. In comparison, May-21 tenders were Rs 455 billion.
Over the past 12 months, key segments that have witnessed a strong tender pipeline are roadways (up 59% YoY), community services (up 69% YoY), water supply (up 12% YoY) and hospitals (up 21% YoY).
Key large sectors that have disappointed are irrigation (down 9% YoY) and railways (down 7% YoY).
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