Mumbai: The revenue of road-building engineering, procurement and construction (EPC) companies is expected to contract by 8-10% this fiscal with the covid-19 pandemic-driven lockdowns severely curtailing activity, credit ratings agency Crisil said in a report.
Between fiscals 2017 and 2020 there was a 17% growth in this segment.With lower awarding by the National Highways Authority of India (NHAI) in the last two fiscals, revenue growth was expected to taper to some extent.
However, this fiscal, the slowdown in execution due to lockdowns and the resultant labour shortage is expected to push revenue growth into negative territory, the report said.“Typically, in EPC projects, the maximum execution and billing is done in March.