Recovery unlikely for cement and capital goods sectors before Q3

Industry volume declined in the June quarter

The economy’s six-year low in growth of gross domestic product for the financial year’s first quarter (Q1, April-June) is in line with the weak performance of the capital goods and cement sectors. Demand is unlikely to return in the September quarter, said company officials. 

“Overall for the industry, the June quarter was a bad one. No major contracts were awarded, and it is not going to improve in the immediate future. Barring the government contracts, investment sentiment remains weak,” said M S Unnikrishnan, managing director (MD), Thermax. 

Industry officials peg capacity utilisation for the capital goods sector at 50-60 per cent, compared