Q3 results preview: Strong tender activity to aid capital goods firms

YoY topline, bottomline growth likely in double-digits, but margin concerns remain, say analysts

Continued momentum in public and private-sector capital expenditure (capex) is likely to assist year-on-year (YoY) topline and bottomline growth of capital goods companies in the third quarter of the ongoing financial year (Q3FY23).

While sequentially, topline and bottomline numbers appear sluggish, order inflows have remained strong during the October-December period, sector experts said.

Analysts tracking the capital goods market said they expected a near 13 per cent net sales growth and 10.3 per cent rise in profit after tax (PAT) on a YoY basis for companies operating in the space. This includes Larsen & Toubro (L&T), Thermax, ABB, Siemens, and