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Recovery signs visible at capital goods companies, government support crucial

With workers returning, execution is normalising. Customers are investing in efficiency improvement measures. Orders are emerging from new age industries and efficiency improvement investments by clients

December 04, 2020 / 10:36 AM IST
Recovery signs visible at capital goods companies, government support crucial

The September quarter results and management commentaries of capital goods companies indicate a decent recovery taking place after the disruption caused by COVID-19. With employees returning to work, execution is normalising. Customers are investing in efficiency improvement measures. Orders are emerging from the growing and new age industries such as pharma, data centres, renewables, chemicals, warehousing, staples and power distribution. Order inflows improved sequentially for most companies, though they remain below the previous year’s levels. A firm push by the government towards infrastructure...

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