Industrials to report healthy quarter on continued push by govt on infrastructure development
New Delhi, April 10 : 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.
“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,” JM Financial Institutional Securities 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 research 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,),” the brokerage said.
BEL provisional number for FY24 indicates a revenue growth of 30 per cent YoY for 4QFY24 driven by strong opening order book (Rs 762 billion) and is also aided by revenue spill of over Rs 4-5 billion from 3Q to 4QFY24. BEL continued to report healthy order inflows and reported order inflows of Rs 78 billion in 4Q, the brokerage said.
