The engineering and construction (E&C) sector delivered an excellent performance in the last two financial years (FY2021-22 or FY22 and FY23’s nine-months) and there’s reason to believe that FY24 will also see outperformance.

The sector has emerged from the pandemic with stronger balance sheets and more rational cost structures.It has a big order book and it should see new order flows accelerate in FY24.

Central Budgetary support for infrastructure creation was a key reason for the strong past performance and as elections draw nearer, this allocation may be ramped up. Historically, government Budgetary expenditure goes up, the year before a General Election and given strong tax collections, this pattern should repeat in FY24.