Friday, October 30, 2020

Editor's Space

Testing Times


As it is India’s GDP has been declining dangerously last few fiscals. Now the covid pandemic has slowed the Indian coomy almost to a standstill.  


Apart from the tragic human consequences of the COVID-19 corona virus epidemic, the economic uncertainty it has sparked will likely cost the global economy $1 trillion in 2020, according to UNCTAD. The fall in oil prices has been a contributing factor to the "growing sense of unease and panic”.


The construction industry, which mirrors the economy has taken a huge blow as their finances are already strained and gross budgetary support to infrastructure to decline due to lower revenue receipts.
With the government lifting restrictions gradually and almost all economic activities resuming from July. India Ratings (IndRa) said revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins of engineering, procurement and construction (EPC) companies would decline around 15 per cent and 200 basis points, respectively, as the lockdowns would reduce the project execution pace. However, the demand drivers seem to be healthy, with medium-term revenue visibility at end-FY2020.  The order book of the top 18 EPC players declined six per cent year-on-year in FY20, after registering extraordinary growth during FY16-FY19, in which it almost doubled to Rs 2.1 lakh crore from Rs 1.2 lakh crore.


But as the age old saying goes “When the going gets tough, the tough get going” surely these are Testing Times for all and the need of the hour is to stay positive, focussed and think out of the box to tide over these difficult times.


With a lot set to happen, this month is full of reading material and we are certain that you will have a wonderful read!


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