TT Srinivasaraghavan, managing director of Sundaram Finance, on Tuesday said that there is room for optimism as the infrastructure sector was showing signs of revival. According to Srinivasaraghavan, while the real growth will only start in FY22, the early shoots are certainly visible.

“There is enough positive coming out of the Budget and what we are hearing even anecdotally from our customers - steel has started doing well, cement is starting to pick up. So, all of these things speak the infra story. So, if you put all the pieces together, I believe there is room for optimism, though the real growth I think will start probably in the second half of FY22. But the early shoots I think are certainly visible,” he said in an interview to CNBC-TV18.

Srinivasaraghavan believes that the cycle has hit a bottom and hence there are signs of revival in the infrastructure sector.

“I certainly think we have hit bottom. We are seeing the first signs of revival, especially with all the activity happening in the infrastructure sector. We are definitely seeing demand for tippers for the last 2-3 months. The Budget gave it a further impetus. So, my sense is that we are hopefully at the beginning of an upcycle," he said.

Srinivasaraghavan certainly believes that better times lie ahead, subject to the sudden second wave of COVID-19.

He also said that potential lockdowns could impact recoveries but as of now they have not seen serious concerns in terms of recoveries.

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(Edited by : Niral Sharma)