One month's lockdown can erode 8-10% of construction firms' Q4 revenue
A nationwide lockdown to contain the COVID-19 pandemic will adversely impact construction companies and a month's lockdown can erode 8-10 per cent of their fourth quarter revenue, a report says. According to ratings agency India Ratings, fourth quarter of every fiscal typically accounts for 30-35 per cent of the annual revenue of construction companies, of which a month's lockdown can erode 8-10 per cent. The agency believes that construction activities across cities like Mumbai Metropolitan Region, Delhi, Pune, and Bengaluru are likely to be stalled or progress at a significantly slower-than-anticipated pace for a major portion of March 2020 which may continue in April as well. Companies with ongoing significant construction works in such cities are the ones likely to be the most affected, as they are turning out to be the epicentre of the outbreak, the agency said.
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