Electrical Equipment industry in slowly recovering in arresting the decline FY20-21. It has now declined in absolute terms by 22% in 9 months till Dec.20 after registering decline of 28% in 1st HY and slippage of over 40% in Q1
In Q3, there has been recovery and posting positive growth for Rotating Machines (42%), LV Switchgear (8.4%) indicates some momentum /green off shouts in core sector and realty. Though, this growth especially for Rotating Machines is on low base.
Pick up in TLT, HV Breakers and Power Trf. by 8.4%, 14% and 1.4% respectively indicates some traction in HV transmission and sub-station installations, However, still there is a decline in Cable, Conductor, Insulators, Energy Meters, Dist. Transformers in double digit in Q3
Exports growth is visible In some product segments like LV Switchgear, Transmission Line Towers, Capacitors etc., Exports which was higher than imports for the 1st time till HY, has once again less than imports by about 5%
There are green shoots visible towards growth in overall economy due to sustained actions by Govt. of India like infusing liquidity, focusing on capex development by large CPSUs, pushing for momentum in infrastructure projects especially in RE and Transmission sectors, reducing PBG etc. However, industry is facing challenges like abnormal surge in raw material prices in addition to availability of the same, shortage of workforce, logistics etc.