Published on 14/11/2017 4:35:12 PM | Source: Dion Global Solutions Ltd
Slight improvement in finances of infra companies: ICRA
Rating agency ICRA has said that even though many infrastructure players are still struggling with stressed balance sheets there has been an improvement in financial profile of firms having exposure to airport and highways projects indicating a revival in the sector. Commenting on the issue, an ICRA Official told the media, "Early signs of a revival of the infrastructure sector are evident with the improvement in the financial profile of players." According to the agency, the aggregate debt of infrastructure companies across segments at a standalone level as of March 2017 had increased only marginally from March 2016.
Commenting on the issue, ICRA Vice-President and Sector-Head, Corporate Ratings Shubham Jain told the media, "While it is still early to comment on whether the tough phase for infrastructure companies is over, things have certainly started improving. We have seen deleveraging, and focus on execution as the drivers of this improvement." He said infrastructure segments like airports and highways have been outperforming with improved operational performance supported by healthy traffic growth in both the segments.