Pointing that revival of infrastructure sector is in the primitive stages, credit rating agency, ICRA in its latest report has said that infrastructure companies with exposure to airport and highway sectors are doing well by showing improvement in their operational and financial performance, however many infrastructure players are struggling with stressed balance sheet problem.
As per ICRA’s report, aggregate debt of infra companies at a standalone level as of March 2017 rose only marginally from March 2016, while at the consolidated level, debt declined by 12% year-on-year to Rs 1.39 lakh crore from Rs 1.58 lakh crore, on account of stake disinvestment in subsidiaries or projects by the infra companies.
The report also found that the order book position of most construction companies have improved to over three times their last reported annual revenues, with government’s efforts to improve the country’s infrastructure. ICRA however noted that the sector continue to face funding issues, as banks are still grappling with high Non-Performing Assets woes.