The engineering and capital goods companies are believed to have sailed through the March 2021 quarter, which started off with economic activity reaching pre-Covid levels but ended with localised restrictions in place. Despite this, analysts believe a healthy order pipeline, pro-growth government policies supported by higher capex allocation in the Union budget, and production-linked incentive (PLI) scheme for the sector may aid their earnings in the March quarter (Q4FY21). “With all segments viz. Metro, Roads, Rail, Water, Manufacturing, etc. witnessing strong ordering, the capital goods companies stand to benefit from replacement demand and greenfield expansion,” said a report by HDFC Securities.