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Business

Industrials to report healthy quarter on continued push by govt on infrastructure development

IANS | April 10, 2024 01:09 PM

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.

"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.

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