Capital Goods & Power Q4 Earnings Preview - Rebound In Execution, Decent Inflows To Aid Growth: ICICI Direct
An employee works on the manufacturing floor at heavy machinery manufacturing facility. (Photographer: James MacDonald/Bloomberg)

Capital Goods & Power Q4 Earnings Preview - Rebound In Execution, Decent Inflows To Aid Growth: ICICI Direct

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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.

ICICI Direct Report

Q4 FY21 is likely to be a reasonable quarter for the capital goods universe in terms of order inflows while execution may further improve sequentially as we expect execution pick-up with higher work force mobilisation and supply chain normalisation with some productivity challenges amid pandemic.

Product companies are likely to post decent quarter amid demand returning in key industries like automobiles and industrials.

Order pipeline remains robust across transmission and distribution, green energy corridor, railways, transportation, water and infrastructure, etc., and expected to be lumpy in H1 FY22.

Key risks remain project delays/deferrals and less-than expected conversion of the tendering pipeline.

Click on the attachment to read the full report:

ICICI Direct Capital Goods Q4FY21 Result Preview.pdf

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