New orders and execution likely to remain subdued in Q2, say analysts

Some pin hopes on the NIP even as awards for FY21 and year after look bleak

Tendering and project award activity for the capital goods and engineering sector has almost doubled in July from a year ago. Despite the rise, analysts expect the July-September quarter to be a tough one —both for new orders and execution.

The significant year-on-year (YoY) rise in awards is driven by a low base effect due to elections last year.

Some also expect the current quarter to be worse compared to the January-March and April-June quarter performance in terms of new order wins. In addition, new order visibility for the remaining part of the year is limited to sectors like roads and water.

According