Capital Goods, Defence Results Preview - Structural Shift In How Businesses Operate: Dolat Capital
Solar reflectors developed by Thermax Ltd at a Mahindra and Mahindra manufacturing plant ( Photographer: Dhiraj Singh/Bloomberg)

Capital Goods, Defence Results Preview - Structural Shift In How Businesses Operate: Dolat Capital

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Following a sharp demand recovery in Q4FY21, Q1FY22 was expected to begin on a positive note; however, growth was disrupted due to the second wave of the pandemic.

Despite this, the downturn was relatively well managed because companies had prior experience managing labour migration, supply chain disruption, and inventory management.

Consequently, new projects fell 13.4% sequentially for the quarter, to Rs 1.55 trillion, according to CMIE. Furthermore, the increase in commodity prices (which is now normalising) has undoubtedly impacted margins; as a result, companies are focusing on automation and digitalisation to increase efficiencies and mitigate the impact.

Notably, there has been a structural shift in how businesses operate, with customers willing to pay a premium for greater energy efficiency/better quality.

Click on the attachment to read the full report:

Dolat Capital Goods and Defence - Q1 Preview July 6.pdf

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