Workers labor beneath a tunnel-boring machine at a construction site in China (Photographer: Qilai Shen/Bloomberg)

Thermax Sees 25% Uptick In Orders This Year

Engineering services provider Thermax said order inflows for capital goods companies are steadily picking up both from local and overseas markets. The company sees a 25 percent uptick in orders in the current financial year due to increased or additional production.

"The total orders which are going to be placed for refinery equipment could be going all the way up to Rs 25,000 crore. We see an opportunity of nearly Rs 600-700 crore," Managing Director and CEO MS Unnikrishnan told BloombergQuint.

Capital goods companies had seen a dip in orders for the last couple of years due to a combination of uncertain global market and policy disruptions back home.

This is expected to change. Government-owned NTPC will be awarding 17 projects worth 17,440 megawatts by the first half of the next financial year, according to a recent report by IIFL Institutional Equities.

But not all will benefit. Unnikrishnan said banks have been cautious in funding specific projects. "In the next two-three years, I would believe that only companies with good balance sheet will be able to grow," he said.

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