High commodity prices may have dented Q3 profitability of capital goods cos

In terms of order inflows, the sector is expected to have witnessed weakness in the period under review

Higher commodity prices, alongside additionally negative sentiment towards the end of the December quarter due to Omicron, are expected to hurt profitability, as well as revenues of domestic capital goods companies, on a year-on-year (YoY) basis, said brokerages.

“Demand witnessed a healthy pick-up in October- November 2021, while December experienced lower growth due to the rising spread of Omicron and increasing Covid caseloads. During the third quarter (Q3) of 2021-22 (FY22), the industry is likely to have witnessed lower volumes due to weak festival season and muted rural demand,” said a Reliance Securities report.

Larsen & Toubro (L&T), Thermax, KEC International, and