Q1FY22 Result Preview - Capital Goods & Power - ICICI Direct

Q1FY22E is likely to be a reasonable quarter for the capital goods universe in terms of execution amid the second wave impact while order inflows are expected to be muted owing to a delay in finalisation and order deferrals. Product companies are likely to post a decent quarter YoY on a low base, aided by some lockdown relaxations provided to the manufacturing & infrastructure sector having lesser impact on supply chain and dispatches. Larsen & Toubro (L&T) announced EPC orders in the range of ~Rs. 4500 crore to ~Rs. 10500 crore (as on date, ex-services segment) across water treatment, transportation, buildings & factories segments indicating muted order inflows for the quarter amid a challenging environment. In the T&D space, KEC has announced decent order inflows of Rs. 2900 crore aided by orders from T&D (domestic, international markets), railways, civil, etc, while Kalpataru Power (KPTL) has not yet announced any order as on date for the quarter. Thermax announced order inflows worth ~Rs. 250 crore as on date for the quarter while a further pick-up in industrial capex would improve its order backlog to have revenue medium term visibility. Bharat Electronics (BEL) has not yet announced any order for the quarter.

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Source : Equity Bulls

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