EPC firms see jump in orders from government

After a dismal June quarter, order books are swelling at India’s top engineering, procurement and construction (EPC) companies, driven by higher government spending in infrastructure and a swift economic rebound.

At the end of September, Larsen and Toubro, India’s largest integrated EPC and capital goods company, had an order book of nearly Rs 2.99 trillion. This was only about 1% below Rs 3.03 trillion exactly a year ago. However, the company has won large contracts in high-speed rail and rapid transit systems after September.

Dilip Buildcon, another prominent name in the EPC segment, saw its order book grow nearly 27% from the year earlier. Similarly, Kalpataru group company JMC Projects, which builds transmission lines, roadways and bridges, saw its order book jump as much as 46% during the period, mainly aided by project wins in the government sector.