Driven by strong project awarding and execution, the debt of road and highway contractors in the country is likely to rise to Rs 30,000 crore by the end of 2024-25 from Rs 17,000 crore in FY22, a report by Crisil Ratings said.
“All the same, with the leverage level low at present, developers have headroom to borrow, which would keep their credit risk profiles stable. Asset monetisation will be crucial to rein in debt at comfortable levels,” the report said.
The rising debt will mostly be on account of equity commitments in under-construction projects, along with a rise in working capital requirements.
