As construction activities came to a screeching halt due to COVID-19 pandemic-induced lockdown, construction equipment sales volume witnessed a sharp 70 percent fall in April-June 2020 quarter, CRISIL Research said. According to the ratings agency, volume would decline on-year this fiscal, especially since public spending will be diverted towards healthcare and public welfare. “With the COVID-19 pandemic induced lockdown bringing construction activity to a halt and labourers trudging back to the presumed safety of their native place, construction equipment sales volume has nosedived 70 percent on-year in the first quarter, and utilisation has nearly halved,” the agency said. Construction equipment business, comprising backhoes, excavators, cranes, compactors and loaders, has run into greasy grounds, it said.  Compactor volume would contract as highway construction is likely to decline 10-13 percent on-year this fiscal. The agency further noted that operating margins, which fell by 350-400 basis points(bps) to 7-8 percent in fiscal 2020.

(Moneycontrol)