Cap goods cos steaming ahead
₹412,648 crore as of June end, with international orders having a share of 29%. As such, investors will have to gauge the impact of the Israel-Hamas war on the companies engaged with the Middle East.
Note that the region constituted 87% of L&T’s international order book in FY23. Meanwhile, transmission and distribution EPC (engineering, procurement and construction) companies like KEC International and Kalpataru Projects International received significant orders of around ₹3,200 crore and ₹3,300 crore, Prabhudas Lilladher noted in its Q2 preview report.
Kotak sees a healthy 23% year-on-year sales growth for ABB India led by strong growth across segments, and expects mid-teens growth in Siemens and Thermax, taking into account an improvement in profitability as commodity prices ease and operating leverage kicks in. Among defence companies, JM Financial expects Bharat Electronics’ margin to moderate a bit year-on-year, while that of Data Patterns (India) could contract by 2 percentage points due to an increased share of developmental orders.
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