X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Capital goods: Raking in big orders - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Sep 25, 2008

    Capital goods: Raking in big orders

    In a growing economy like India, companies across sectors are bound to invest for their future growth. The fact that India lacks basic infrastructure still persists. As such, companies from across the sectors are willing to exploit the opportunities based on the same. Infrastructure, engineering and construction companies are taking advantages of core competencies to expand their capabilities across segments.

    In the fiscal till date, the number of order inflows has been relatively slower in absolute terms. However, in value terms majority of the order intakes have been massive in size. Companies across infrastructure segments like engineering (products and services), construction and power (generation, transmission and distribution) have announced big contracts over the past few months, with most of them being their largest till date. The table below states some of the large orders announced in this fiscal.

    Major orders announced during the current fiscal
    Month Company Details* Size (Rs bn)
    Sept L&T Various construction orders 50.0
    July BGR Energy EPC power project 49.0
    Aug L&T Orders from steel and zinc industry 38.2
    Sept Punj Lloyd Pipeline project 36.4
    July BGR Energy EPC power project 31.0
    June L&T Steam turbine generator package 15.6
    July L&T Railways order 10.5
    July Punj Lloyd Balance of plant and EPC power project 0.1
    June L&T Hi-tech equipment order 10.0
    July Thermax Equipment supply contract 8.2
    Sept L&T Its largest Brazilian equipment order 7.2^
    Sept Patel Engg Delta system modernisation 7.0
    July HCC Barrage construction project 6.4
    Sept Simplex Infra Tower construction project 6.3
    Aug Nagarjuna Cons. Various orders 4.7
    July ABB Power products, systems, and solutions order 4.6
    July L&T Transmission line order 4.5
    Aug Nagarjuna Cons. Various orders 4.4
    April Areva T&D Electrical balance of plant and equipment order 4.2
    Aug Thermax EPC captive power plant project 4.2
    Sept Nagarjuna Cons. Various EPC orders 4.1
    July HCC BOT highway project 3.4
    July ABB Electrical products and systems 3.2
    April HCC Civil power project 3.0
    July Siemens Baggage handling contract 3.0
    June ABB Power plant package 3.0
    July Areva T&D Substation package contract 2.7

    * Includes contracts won in form of consortiums of joint ventures; ^ approximate figure

    What to expect?
    With strong experience and capabilities to take up larger sized contracts (for engineering and construction firms) and bigger manufacturing capacities, these large companies have in fact taken up massive sized projects and orders of late. While the larger players have been taking up huge orders, the relatively smaller players are also slowly entering the big league at a steady pace.

    However, all said and done, execution remains the key. Companies from the infrastructure, engineering and construction sectors will continue to face issues like raw material availability and pricing, manpower availability and spiraling wage cost and capital as they work on these big orders going forward. Considering that some projects do not have inbuilt cost escalation clauses might also impact the profitability of companies.

     

     

    Equitymaster requests your view! Post a comment on "Capital goods: Raking in big orders". Click here!

      
     

    More Views on News

    BHEL: Margins Dip into the Negative (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The company also saw order inflows of Rs 18 billion during the quarter, which was a massive 41% YoY lower than the previous year's quarter.

    Cummins Ltd: Domestic Revenues the Saving Grace (Quarterly Results Update - Detailed)

    Aug 14, 2017

    The domestic economy continues to grow largely in areas which are positively impacted through continuing government investments in infrastructure.

    ABB: Large Orders Remain Muted (Quarterly Results Update - Detailed)

    Aug 2, 2017

    Decisions on government initiatives and private investments were stalled in anticipation of upcoming tax restructure.

    L&T: Amidst a Challenging Business Environment (Quarterly Results Update - Detailed)

    Aug 1, 2017

    Bank credit to industry remained muted and investment momentum was driven mostly by public sector spending.

    L&T: Private Sector Capex Remains in a Tizzy (Quarterly Results Update - Detailed)

    Jul 24, 2017

    Vast majority of private players remain more concerned with debt payback rather than starting new projects.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE CAPITAL GOODS


    Aug 23, 2017 03:36 PM

    S&P BSE CAPITAL GOODS 5-YR ANALYSIS

    COMPARE COMPANY

    MARKET STATS