Business Standard

Decline in order inflow at L&T does not augur well for capital goods sector

Even though it was better than what analysts had expected, it still paints a bleak picture.

Larsen and Toubro
Premium

Looking at the decline in fresh investments, capital expenditure (capex) and deferment of order awards due to lockdowns, a fall in new orders was anticipated.

Ujjval Jauhari Mumbai
Investor focus has shifted away from the capital goods sectors, with Larsen & Toubro (L&T) seeing new order inflow slump 39 per cent year-on-year (YoY) during the June quarter (Q1) to Rs 23,574 crore — a 13-quarter low.

 It paints a grim picture for the sector, despite the bellwether beating Street estimates. Looking at the decline in fresh investments, capital expenditure (capex), and deferment of order awards due to the lockdown, a decline in new orders was anticipated.

 Analysts at Motilal Oswal Securities (MOSL) had projected order inflows of Rs 20,000 crore. L&T Group’s consolidated order book stood at Rs 3.05 trillion

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jul 23 2020 | 8:14 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com