Infrastructure companies likely missed FY20 sales, order target due to Covid-19: KEC International CEO

Infrastructure companies likely missed FY20 sales, order target due to Covid-19: KEC International CEO

Most infrastructure companies make the bulk of their annual sales and new orders in the fourth quarter of a fiscal year. The pandemic and the subsequent nationwide lockdown in the country further added to the woes of these companies that have already been facing growth challenges.

Mumbai: Indian infrastructure companies are likely to miss order inflow and revenue targets in FY20 as the Covid-19 pandemic disrupted the already muted growth for the just concluded fiscal year, the chief executive of RPG Enterprises’ KEC InternationalNSE 0.06 % told ET.

KEC has an order book worth around Rs 20,000 crore, primarily in the power transmission and distribution sector, which gives it revenue visibility for the coming quarters, and the company believes that if work resumes ..

The silver lining for the company is that government agencies in India, its biggest clients, are ensuring regular payments.

“Government agencies are making an extra effort to pay us on time; so, we are able to pay our vendors and workers and the supply chain is not hurt,” Kejriwal said.

KPMG said in a report on the impact of Covid-19 pandemic on India that the infrastructure sector, which was already facing stress points, is likely to come under immense pressure with stoppage  ..

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