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Covid-19: Order inflow a concern for capital goods, construction companies

In a two-part series, Business Standard takes stock of order books of infrastructure companies and whether they will be able to withstand the lockdown-induced economic slowdown

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Road-construction companies, with an outstanding order book of Rs 6,000-8,000 crore, however, can stay busy longer even if new orders dry up.

Amritha Pillay Mumbai

4 min read Last Updated : Apr 29 2020 | 11:20 PM IST

As Covid-19 casts a long shadow on fresh investment, capital goods companies and construction firms in the country may be staring at a weaker order inflow this year.

Some capital goods companies have orders that will yield revenues lower than in the previous financial year.

Road-construction companies, with an outstanding order book of Rs 6,000-8,000 crore, however, can stay busy longer even if new orders dry up. The run rate of execution for capital goods companies is arrived at using a ratio of annual revenue to orders.

“Most capital goods companies have an order backlog for the next six-nine months.

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