India Inc shows signs of the Red Sea conflict in Q3FY24 performance

Capital goods and engineering companies - Bharat Electronics, TD Power Systems and KEC International, all have noted some operational strain owing to Red Sea woes

Indian corporates are beginning to report early signs of the Israel-Hamas conflict on business operations, limited to those with exposures to either commodity supplies or related foreign markets.

The rise in freight costs, delays in deliveries, and shrinkage in export market size, with resultant margin recovery delays, are some of the challenges faced, informed by industry executives. However, a handful are hopeful to gain from discounted commodity supplies.

Capital goods and engineering companies like Bharat Electronics (BEL), TD Power Systems, and KEC International have noted some operational strain owing to Red Sea woes.

In a call