Higher infra spend ups 'Construction Equipment' volumes
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IANS
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Published on
Sat, Mar 6 2021 12:36 IST
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Road construction.. Image Source: IANS News
New Delhi, March 6 : Heightened focus on infrastructure spend, particularly in the road infrastructure segment has led to a sharp scale up in 'Construction Equipment' volumes since July 2020, said ratings agency ICRA.
Accordingly, the agency revised its outlook on the CE sector to 'Stable' from 'Negative' following a strong ramp up in volumes.
ICRA cited heightened focus on infrastructure spend, particularly in the road infrastructure segment has led to a sharp scale up in volumes since July 2020.
As per the agency, factors such as sharp increase in the awarding and execution pace of road construction; increased focus on rural infrastructure; strong rural volume off-take for equipment on the back of second consecutive good monsoon; improving demand from railway and mining segments and the regular payment flow from the government to contractors has supported healthy revival in industry volumes over the last few months.