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
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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.
