Construction, engineering and other capital goods companies are likely to have a mix of average to good March quarter results, say analysts. The big companies may deliver stronger March quarter results, especially after the lukewarm December quarter performance in the industry.

While the larger companies like  Larsen & Toubro (L&T), ABB India and KEC International are likely to perform better due to diversified businesses and large order books, other firms like diesel and natural gas engine manufacturer Cummins India,  whose clients are primarily private sector, may struggle due to persistent weakness in domestic consumption and in the global economy. The company's main customer segments in telecom, IT and IT enabled services, and data centres are seeing weaker spending and pressure on margins. (Some analysts however, remain optimistic about Cummins India's prospects over the next 12 months - HDFC Securities for instance issued a buy call on the company in February, with a target for its share price of Rs. 1070). 

BHEL has been bullish on new, large order announcements. However, analysts have noted that a good number of projects in its order book look to be in trouble due to cash flow issues and clearances among customers. Thanks to aggressive budget allocations in power transmission, roads and railways, companies with a larger share of government orders are set to perform better in the coming quarters.  Kalpataru Power Transmission for example, is broadening its projects in the railways EPC sector and power transmission sector and is scaling up its business in pipelines. Revenue share of pipeline and railways has already increased to 15% for the company and the management has projected this rising to 20-25% in the coming financial year.

The exchange rate is another factor that will likely impact firms, with the rupee strengthening against the dollar and the RBI expressing a willingness to let it appreciate to some extent. This would have an impact on firms focused on exports, such as Coal India.