India's capital goods industry continues to see healthy growth prospects, since fiscal 2022, after a decadal low performance in fiscal 2021 that was also accentuated by the Covid-19 pandemic.
The impetus to growth comes from strong existing order book, a pick-up in the private sector investment cycle and continued government thrust on infrastructure, which augurs well for future order inflows. The Production Linked Incentive (PLI) schemes will also be growth supportive.
On the operating profitability side, the pandemic significantly dented margins of capital goods companies to below 7.8% in fiscal 2021 as execution suffered. However, it rose 175 basis points (bps) on-year in fiscal 2022, to the pre-pandemic level of ~10% on the back of better coverage of fixed costs. Besides, operating profitability may see further improvement in fiscal 2023 and beyond, supported by healthy revenue growth and moderation in key raw materials.
In the milieu, Crisil Ratings is hosting a webinar on capital goods sector titled 'The march of capital goods' on March 23, 2023, at 3:00 pm, where our experts will present views on:
Overview of the capital goods sector in India
Demand drivers and outlook across different segments, including growth opportunities
Operating profitability of Crisil Rated players
Outlook on the credit quality of Crisil Ratings rated capital goods companies
The presentation will be followed by a panel discussion with sector experts and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of Crisil. Any use of the same without written permission of Crisil is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
