Infra Sector Check - Subdued NHAI Project Awarding In FY24 Hurts Order Inflows: Motilal Oswal

Motilal Oswal Report

Project awarding by National Highway Authority of India stood at ~2,500 kms in FY24 (versus 6,003 km awarded in FY23) and construction stood at 6,644 km. Muted awarding by NHAI hit FY24 order inflows for several road construction companies. Some companies also reduced their order inflow targets for FY24 due to the slow pace of awarding.

Toll collections have been improving, with FAStag toll collections (volume) up 13% YoY and collection up ~22% YoY in Q4 FY24. In March 2024, collections in volume terms improved ~11% YoY, while collections in terms increased by 17% YoY.

NHAI’s primary focus is on asset monetisation as a means to generate funds beyond budgetary allocations. NHAI awarded two toll-operate-transfer bundles, 13 and 14, having a combined length of 273 km for Rs 93.8 billion in Dec-23. To date, NHAI has monetized more than Rs 1 trillion.

Dedicated Freight Corridor Corporation of India revised the timelines for Dedicated Freight Corridor projects, and these projects are now expected to be completed by Dec-24.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.