I’m fairly convinced that WFH culture might continue even after the crisis subsides. Mentioned some of the second order impacts I could think of due to this here:
One of those is a crack on commercial real estate. I was worried about its impact on APL Apollo as 78% of revenues came from Construction & Infrastructure in FY19.
Found list of customers in FY16 Annual Report. Pasting here for reference.
Infrastructure customers: Delhi Metro, Mumbai Metro, Bengaluru Metro, Hyderabad Metro, Kolkata Metro, Kochi Metro and Jaipur Metro, L&T, Gammon, Afcons, BL Kashyap, CPWD, GMR, Engineers India, MHADA and ACE among others.
Power and Gas customers: BHEL, HP, IGL, GGL, BP, Suzlon, MRPL, NTPC, Cairn Energy, Mahindra and Susten among others.
Pre-Engineering customers: Zamil, Kirby, Tiger, Pennar and many more.
Corporate customers: Adani, Reliance, Ashok Leyland, Tata, DLF, SAIL and many more.
Customers which have some exposure to Commercial Real Estate in this list => BL Kashyap, DLF, L&T, Engineers India.
Pre-Engineering customers may have some exposure too but reading up a bit on the internet about these suggest they are mostly used in warehouses, but experts can comment.
Overall, doesn’t look very worrying after going through the list of customers. However, might take some extra time for company to get back onto growth due to issues like migrant labour, but that is a risk I’m willing to take, not the WFH shift (if it really materializes).
Discl: Invested in APL Apollo recently. Might consider adding more in the future. Request investors to do their due diligence before buying / selling APL Apollo. I’m not an investment advisor.