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Most stocks of capital goods companies are seen trading down, as weak earnings in Apr-Jun has subdued investor sentiment. After sector bellwether Larsen & Toubro, energy and environment engineering solutions provider Thermax too posted disappointing Apr-Jun numbers. While recent order win leads to a revision of our order intake and revenue estimates, the same is already factored in current valuations. This coupled with weak demand in captive power (especially in large boilers) and power equipment markets limit growth prospects.
Generator sets and engines maker Cummins India will on Thursday report its earnings for the quarter ended June, while KEC International, Siemens India and Suzlon Energy will detail their results on Aug 2. Cummins India's Apr-Jun net profit is seen down 5% on year at 1.71 bln rupees and net sales are seen at 12.55 bln rupees, up 1% on year.
Similarly, the Indian subsidiary of German capital goods and engineering company, Siemens AG, is also likely to feel the heat of weak sales and depreciation of the rupee. Siemens sources more than 40% of its raw materials from overseas and hence could be hit by the fall in the value of the Indian currency.
Power and transmission line infrastructure provider, KEC International's profit is expected to slide in Apr by 40% year on year to 200 mln rupees. Low visibility of orders and execution of low margin orders is likely to have a negative impact on the company's performance in the quarter. Struggling wind farm equipment maker Suzlon Energy, which posted its biggest ever loss in Jan-Mar, is unlikely to see any significant improvement in Apr-Jun.
Most stocks of capital goods companies are seen trading down, as weak earnings in Apr-Jun has subdued investor sentiment. After sector bellwether Larsen & Toubro, energy and environment engineering solutions provider Thermax too posted disappointing Apr-Jun numbers. While recent order win leads to a revision of our order intake and revenue estimates, the same is already factored in current valuations. This coupled with weak demand in captive power (especially in large boilers) and power equipment markets limit growth prospects.
Generator sets and engines maker Cummins India will on Thursday report its earnings for the quarter ended June, while KEC International, Siemens India and Suzlon Energy will detail their results on Aug 2. Cummins India's Apr-Jun net profit is seen down 5% on year at 1.71 bln rupees and net sales are seen at 12.55 bln rupees, up 1% on year.
Similarly, the Indian subsidiary of German capital goods and engineering company, Siemens AG, is also likely to feel the heat of weak sales and depreciation of the rupee. Siemens sources more than 40% of its raw materials from overseas and hence could be hit by the fall in the value of the Indian currency.
Power and transmission line infrastructure provider, KEC International's profit is expected to slide in Apr by 40% year on year to 200 mln rupees. Low visibility of orders and execution of low margin orders is likely to have a negative impact on the company's performance in the quarter. Struggling wind farm equipment maker Suzlon Energy, which posted its biggest ever loss in Jan-Mar, is unlikely to see any significant improvement in Apr-Jun.
