Road EPC companies’ revenue to contract 8-10% in FY21 due to Covid-19: Crisil Ratings

Labour shortage, slowdown in execution of road projects due to lockdown may cause revenue growth of engineering, procurement and construction (EPC) firms to fall into the low, double-digit negative territory, rating agency Crisil said on Tuesday.

“Revenue of road-building EPC companies is expected to de-grow 8-10% this fiscal with the Covid-19 pandemic-driven lockdowns severely curtailing activity. That compares with a 17% growth between fiscals 2017 and 2020,” Crisil said, adding that revenue growth of these companies was expected to taper to some extent in the current fiscal due to the pandemic.