Infrastructure Sector – How do Indian Infrastructure Companies perform against Global Infrastructure Companies?

Infrastructure sector is very crucial for faster growth of an economy. With default of one of the major Indian infrastructure company and recent elections, infrastructure sector in India has gone through a tough period in the last year.

Let us compare and see how top infrastructure companies in India fare compared to global major infrastructure companies.

Key point to remember for the below analysis is –

  • Mentioned year is financial year for respective companies.
  • For simplicity of comparison, all financials have been converted into USD millions.

We have covered 6 global infrastructure companies and 7 Indian infrastructure companies.

Infrastructure companies

Global Infrastructure Companies:


AECOM’s business is designing, financing, building and operating infrastructure assets for federal and state governments and businesses.

Fluor Corp

Fluor Corporation provides oil and gas infrastructure construction services. The Company offers engineering, procurement, maintenance, outsourcing, equipment rental, and project management services. Fluor serves customers worldwide.

Grupo ACS

The Spanish contractor was formed in 1997 through the merger of two other construction companies. It has grown through several high-profile acquisitions including that of Hochtief. It is an engineering and contracting company that develops civil and industrial infrastructures. The Company provides Civil Works Construction, Greenfield Concession Development, Industrial Services (electricity, oil and gas) and Environmental Services.

Skanska AB

Based in Sweden, the multinational operates in the residential, commercial, residential and infrastructure sectors. In the US, the company is known for constructing the Meadowland Sports Complex, home to the NFL’s New York Jets and Giants. Skanska employs more than 50,000 people.

Balfour Beatty

The multinational was founded in 1909 by George Balfour and Andrew Beatty. Headquartered in London, the company is currently an integral part of the Crossrail project in the UK capital. It operates in more than 80 countries around the world and employs some 40,000 people.


VINCI SA is a global player in concessions and construction with expertise in building, civil, hydraulic, and electrical engineering. The Company offers construction-related specialities and road materials production, as well as finance, management, operations and maintenance of public infrastructure such as motorways, airports, and road and rail infrastructures.

Infrastructure Sector – EBITDA Margin

Indian infrastructure companies have been generating better EBITDA Margins compared to global infrastructure companies on consistent basis. A major benefit that Indian infrastructure companies have is of lower employee cost.

Infrastructure Sector - EBITDA Margin

Infrastructure Sector – Employee Cost as % of Sales

Indian infrastructure companies have comparatively way lesser employee cost.

Infrastructure Sector Employee Cost as Percentage of Sales

Infrastructure Sector – Interest Coverage

Indian infrastructure companies have higher debt, and hence higher interest cost compared to global infrastructure companies.

Infrastructure Sector Interest Coverage

Infrastructure Sector – PAT Margin

Indian infrastructure companies are generating double PAT margin compared to Global infrastructure companies. Only one global infrastructure company is generating PAT margin above 5%.

Infrastructure Sector PAT Margin

Infrastructure Sector – Asset Turnover

Indian infrastructure companies’ asset turnovers are half of that of the global infrastructure companies. None of the Indian infrastructure company is generating asset turnover above 1.0x.

Infrastructure Sector Asset Turnover

Infrastructure Sector – Cash Flow Generation

Indian infrastructure companies have much better cash flow generation compared to global infrastructure companies.

Infrastructure Sector Cash Flow Generation

Infrastructure Sector – Order Book Conversion

Global infrastructure companies are converting their orders into sales at much quicker rate than Indian infrastructure companies. Global infrastructure companies have Order Book turnover ratio (Sales to Order Book ratio) almost double of that of Indian infrastructure companies. Global infrastructure companies take on an average ~1.5 years for execution of the order book v/s Indian infrastructure companies taking ~2.7 years for execution of their order book.

Infrastructure Sector – Valuations

The financials in the valuation ratios are as per respective latest financial year.

Infrastructure Sector Valuations

Infrastructure Sector – Working Capital

Cash conversion cycle for global infrastructure companies is way better than for Indian infrastructure companies. This helps global infrastructure companies generate quicker order book conversion to sales, consistent cash flows and remain low on debt despite of having lower EBITDA margins.

Infrastructure Sector Working Capital

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