Infra Monthly Update - Government Spending, Orders Pick-Up But Still Below FY19 Levels: Systematix
A construction crane is illuminated by sunlight as it stands on a building development. (Photographer: Adam Glamzman/Bloomberg)

Infra Monthly Update - Government Spending, Orders Pick-Up But Still Below FY19 Levels: 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 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).

Click on the attachment to read the full report:

Systematix Infra Monthly Update.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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