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Capital goods cos to recover further in Q4, but covid risks remain

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When companies announce their March quarter numbers, investors will focus on balance sheet health as well. Analysts from Jefferies India Pvt.

Ltd in a report on 21 April said: “Government supported companies on payments in H1, limiting working capital deterioration.

Debtor days and working capital at the year end will help gauge whether it reverted to pre-covid levels."A favourable base and pick- up in execution will aid revenue growth of capital goods’ firms.Motilal Oswal Financial Services Ltd said in its preview: “With revenue decline of 34%/ 13%/3% observed in Q1/ Q2/Q3FY21 due to covid-19 lockdown, we expect strong double-digit growth (+20%) on an aggregate basis."The brokerage estimates strong year-on-year revenue growth for Bharat.

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COVID-19
United States
United States
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Deaths: 750 423
Recovered: 0
India
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Brazil
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Deaths: 237 619
Recovered: 0
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