Results preview: Yet another healthy showing likely for capital goods in Q3

Earnings growth trajectory for India’s capital goods firms is likely to stay buoyant for the December 2023-ended quarter (Q3 FY24), said analysts.

Guidance on margins, ordering activity in an election year and export-related demand would be key monitorables.

Brokerages — Motilal Oswal, Nuvama, Kotak Institutional Equities and Prabhudas Lilladher — estimated revenue growth for their capital goods universe to be 11-16 per cent year-on-year (Y-o-Y).

Buoyed by a mix of domestic and international orders, many capital goods firms in India are currently busy with multi-year high order books, a combined worth of at least Rs 8 trillion, as of September