Risks
Government Dependency: High reliance on government contracts makes the company susceptible to policy changes, budget allocations, and potential delays in project awards or payments.
Project Execution Risks: Risks inherent in construction, such as cost overruns, project delays, unforeseen site conditions, and challenges in land acquisition or regulatory clearances.
Intense Competition: The presence of numerous domestic and international players can lead to margin pressure and intense bidding for projects.
Raw Material Price Volatility: Fluctuations in the prices of key construction materials (cement, steel, etc.) can impact project profitability.
Funding & Financing: For projects awarded under models like Hybrid Annuity Model (HAM) or Build-Operate-Transfer (BOT), access to timely and affordable financing is crucial.