Healthy Q4 more likely in industrial sector
Govt push on infra development, healthy opening order book, continued execution momentum and healthy demand adding to the March qtr
We continue to maintain our positive stance on the sector given government-led infrastructure capex, PLI scheme-led capex in multiple sectors and pick up in private sector capex, said JM Financial
New Delhi: The industrial sector is likely to report a healthy quarterly performance for 4QFY24 driven by a healthy opening order book, continued execution momentum and healthy demand.
JM Financial Institutional Securities said: “Ordering activity, by central government on sectors such as defence, roads, rail/metro-rail, power T&D etc and from private sector (data centres, renewables, real estate and process industries like steel and cement) is likely to continue its momentum, thereby driving order inflows.”
The research said: “We continue to remain positive on the sector mainly, factoring in continued push by the government on infrastructure development and making India a manufacturing hub.”
The brokerage said: “We continue to maintain our positive stance on the sector given government-led infrastructure capex, PLI scheme-led capex in multiple sectors and pick up in private sector capex (renewables, data centres, cement, steel,).”
BEL provisional number for FY24 indicates a revenue growth of 30 per cent YoY for 4QFY24 driven by strong opening order book (Rs762 billion) and is also aided by revenue spill of over Rs4-5 billion from 3Q to 4QFY24. BEL continued to report healthy order inflows and reported order inflows of Rs78 billion in 4Q, the brokerage said.
