Even though factory output in April - July period shrunk by 0.2 percent over the corresponding period of the previous year, the machinery and equipment manufacturing segment managed to record a growth of 9 percent during this period. However, the total output in the capital goods segment, as shown by the capital goods IIP, was sharply lower. According to an analysis done by Hindu Businessline, the revenue and earnings of the 180-odd capital goods companies over the last four quarters show that there are pockets of this space that are beginning to recover, partly due to the higher expenditure on infrastructure by the Centre. While revenue and profits of these companies recorded a 0.8 per cent and 33.4 per cent slump in the last four quarters to June 2016, there was a visible improvement in the June 2016 quarter. Sales and profit in the quarter grew 4.4 per cent and 5.5 per cent over the June 2015 quarter.