Capital goods and engineering companies have had a good first six months of the current financial year despite a slowdown due to low demand during the general elections. Meanwhile, companies have received new orders worth more than Rs.2 lakh crore. The top five companies in the engineering sector, Larsen & Toubro, Hindustan Aeronautics, Bharat Heavy Electricals, KEC International and Kalpataru Projects International, have jointly received new orders worth Rs 2.04 lakh crore. These companies have received new orders from key sectors like defence, private and government energy sector, international trade. Apart from the country, these companies have also received many contracts from abroad.
Hindustan Aeronautics is likely to get orders worth Rs.47 thousand crores this year In the quarter ended September 2024, L&T received orders worth Rs 47,500 crore. In the six months of April-September, L&T received orders worth a total of Rs 1.18 lakh crore. BHEL and HAL received orders worth Rs 27,000 crore and Rs 26,000 crore respectively during the second quarter. During the first six months of FY2025, BHEL received new orders worth Rs 36,480 crore, which is 9% higher than last year. HAL's management expects new orders worth Rs 47,000 crore during this financial year.
Growth in investment: Increase in orders will increase spending and investment by companies Due to the increase in the order book, some of the major capital goods and engineering companies are collectively planning to invest over Rs 11,500 crore this year for new facilities. L&T, which has the largest order book, plans to invest Rs 4,800 crore in semiconductors, electrolysers and data centres. While KEC International has an investment plan of 350 crores and Kalpataru approximately 500 crores.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
