>Industrials and Power Utilities (JM FINANCIAL)

■ Industrials will continue with good results. However, the transformer sector – which includes ABB, Areva and smaller transformers companies like Voltamp, Emco and Indo Tech Transformers – is an exception, as demand <>

■ T&D EPC companies’ results are likely to improve on enhanced order inflows and improving international T&D demand.

■ Power Utilities - NTPC will post good results because of 4% higher generation while Tata Power will see de-growth in revenues (-4.8%) due to flat generation.

■ Our top picks for the sector remain BHEL, Crompton, Kalpataru Power and Suzlon.

■ India has added ~3.7 GW in 3Q FY10 (8.1 GW in 9M FY10).

■ Base deficit stood at 9.5% for 3Q FY10, while peak deficit remained at 12.7%. Higher gas and nuclear availability offset lower hydro generation.

■ Lower seasonal demand and higher volumes led to decline in spot rates (average price of Rs5.3/kWh, while the peak was at Rs8/kWh on power exchanges.

To read the full report: INDUSTRIALS & POWER UTILITIES