The operating profitability of road EPC (engineering, procurement and construction) contractors is expected to decline by 200-250 basis points (bps) according to CRISIL NSE 1.22 %.
Margins will be a decadal low this fiscal but despite the fall, the credit profiles of road EPC players will remain stable. This is supported by deleveraged balance sheets, prudent working capital management, and steady cash accrual, with strong awarding in the past two fiscals supporting revenue growth.
