Infrastructure push: Higher expenditure yet to reflect in top line

Combined net sales of infra, capital goods firms down 2.3% in Dec quarter

The Central government’s increase in public expenditure on infrastructure projects in FY21 and FY22 is yet to reflect in the finances of companies in construction, engineering, and capital goods. 

They continue to struggle with stagnant revenues and poor profitability.

The combined net sales of 42 listed construction and capital goods companies that have declared their third-quarter results so far were down 2.3 per cent year-on-year in Q3FY21 while core operating profit (excluding other income) was up just 4.9 per cent YoY during the quarter.

The companies’ combined net profit was up 6.5 per cent YoY during the quarter, boosted by