The traffic growth in the last quarter has improved and bidding pipeline is also expected to be strong going forward, said Paresh Mehta, CFO, Ashoka Buildcon.
The Cabinet on Wednesday making changes to the foreign direct investment (FDI) policy eased investment norms for sectors like construction, single brand retail and aviation. The government has allowed 100 percent FDI under automatic route for single brand retail trading and construction development.
Talking about above development from the sidelines of the Prabhudas Lilladher Infrastructure Day, Paresh Mehta, CFO, Ashoka Buildcon said this will help the sector deliver projects on time and the government achieve its road development target of the Bharatmala scheme.
It will improve the dynamics of the sector, he said.
When asked about his expectations from the Budget 2018, he said some impetus must be provided for road and infrastructure sector. There should be some interest rate concessions on capital projects.
There also needs to be more clarity on taxation and clarifications on exits and investments by FDI into these projects in the Budget, he said.
With regards to the business, he said the traffic growth was robust in the third quarter and is expected to be better going forward for few quarters. Moreover, aided by low base of last year, the revenue growth was good, said Mehta.
There was about 10-11 percent traffic growth, said Mehta, adding that revenue growth has been in double-digits.The bidding was slower than envisaged at the start of the year but is expected to be strong going forward, said Mehta.
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