Ashish Bhandari, MD and CEO of Thermax, on Thursday said that some big projects are starting to show up. In an interview to CNBC-TV18, he said the company is seeing a recovery improvement of around Rs 1,500 crore per quarter with some big projects now starting to show up.
"So it's too early to say if it is recurring or it is a boom cycle like it was in 2010, but it is certainly more than just pandemic-based recovery, because it has held up for three quarters and the pipeline that we see continues to be robust,” he added.
Bhandari also said the company is seeing clear signs of a broad-based recovery in demand.
The second wave of the pandemic led to a sharp dip in India's capital expenditure. It is picking up now as projects planned before the second wave have begun to take shape.
Analysts say India is now at the cusp of a multi-year private sector capex cycle.
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“However, we should not expect mega projects, at least not in the industries that we touch... the kind we used to see 10 years ago. Because with the whole nature of energy changing, I do feel that the nature of projects will also change. We will see a lot of smaller, more decentralised projects than just relying on mega central projects,” he said.
On demand, Bhandari said, “We are seeing green shoots of recovery and private spending picking up from sectors like steel and cement. Food and pharma sectors have picked up, and we are seeing clear signs of a broad-based recovery.”
For the entire management interview, watch the video