Impact of changes in 80-IA on infra cos

#1
Hi,

Until now, all infrastructure companies like Gammon, IVRCL, Patel Engineering, Nagarjun etc., were gaining from the 80-IA tax rule. But FM in the budget yesterday has made some changes. As I understand, as per the new change, only those infrastructure companies that execute infrastructure projects themselves can get cover of the 80-IA. While those infrastructure companies that work as sub-contractors CAN NO LONGER get the same benefit.

To add to that, the change requires companies to restate their financial statements from the period of 2001. I think thats a serious impact on earnings.

Can someone kindly help me understand the correct impact of this new change on the earnings and the stock prices of the following companies in specific -
1. Gammon India
2. Patel Engineering
3. IVRCL
4. Nagarajun.

Thanks in advance,

Mohan
 

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