iifl-logo-icon 1
IIFL

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Highways: Q4 awards ramping up, as expected

14 Mar 2023 , 10:19 AM

Project pipeline with NHAI at ~42k km remains strong; ~13k km planned on HAM model. NHAI’s B/S too has improved, with D/E falling to 0.7x in December 2022 versus a peak of 1.2x in FY21. Meanwhile amid intense competition from local players for highway projects, companies continue to diversify into railways, metros, water supply etc.

Road awards picking up; large listed players winning more

Analysts at IIFL Securities had seen an uptick in highway awards in December-January, with 8,400km awards in 10MFY23 growing 22% YoY. While February 2023 award data is awaited, announcements of order wins by listed players indicates that the momentum has strengthened in March 2023. Listed contractors have announced wins of 244km in Q4 for an amount of Rs88 billion with Ashoka, KNR and PNC announcing highway wins of ~Rs20 billion each. Given the announced OI targets, trend should continue through March.

Still large award pipeline; NHAI balance sheet has improved

Overall highway award pipeline under NHAI remains strong at 42,379km; ~20,000km identified in terms of mode of development. Understandably, HAM constitutes 13,000km of this. Importantly, NHAI has seen its D/E ratio dropping from a peak of 1.2x in FY21 to 0.7x as at 9MFY23, supported by strong allocation in the last two budgets and growing toll revenue collection.

Companies focus on diversification amid growing competition

A key issue for large listed players has been the intense competition for highway projects. Hence, players have incrementally diversified into other sectors like Water Supply, Railways, Metro Rail and Ropeways. While this aids revenue growth visibility, margin impact needs to be seen as the execution ramps up for new projects.

 

Related Tags

  • Highways
  • NHAI
  • Roads
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.

closeIcon

Get better recommendations & make better investments

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp