Realty, Infra Q1 Preview - Strong Growth On Washout Base; Sequential Decline Amid Second Wave: ICICI Direct
A construction crane is seen between buildings. (Photographer: Keith Bedford/Bloomberg)

Realty, Infra Q1 Preview - Strong Growth On Washout Base; Sequential Decline Amid Second Wave: ICICI Direct

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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.

ICICI Direct Report

We expect strong YoY revenue growth for construction companies driven by a depressed base, albeit a decline on a QoQ basis on account of the second wave.

For real estate companies, sales volumes are expected to come off sequentially, though much better than washout base of Q1 FY21.

We anticipate residential sales momentum to take a breather in Q1 FY22E owing to second wave.

On a medium term, triggers such as pent up demand, benign interest rates, launches will continue to boost momentum, going ahead.

Order inflows across the construction universe were impacted owing to the second wave.

On the execution front, we expect construction companies to witness robust growth YoY on a washout base (our coverage topline was down ~36% in Q1 FY21).

Click on the attachment to read the full report:

ICICI Direct Infra RealEsate Q1FY22 Results Preview.pdf

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