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Capital goods sector may suffer 5% de-growth in Q2

October 30: The capital goods sector is likely to see a 5% de-growth in the second quarter (Q2) of 2013-14 (FY14) versus the same quarter last year, an analysts' report said.
Further, the capital goods sector is expected to witness around 23% year-on-year (y-o-y) decline in EBITDA and 32% y-o-y decrease in profit after tax (PAT) for the said quarter, the India Strategy report by Motilal Oswal said.

Among the major companies in the sector, BHEL, Cummins India, Siemens and Thermax are likely to suffer de-growth in sales, EBITDA and PAT on an annual basis.

There is low appetite for new projects in the sector due to a number of factors, including the general economic slowdown, Reserve Bank of India's liquidity tightening measures, delayed payment from customers, delay in project approvals and rupee depreciation, among others.