Sintex Q1: Analysts say PAT may grow 37% to Rs 64.1 cr
Sintex' total income is seen going up by 11.7 percent to Rs 1,207 crore in April-June quarter from Rs 1,081 crore in a year ago period, driven by continued performance momentum in pre-fab and domestic custom moulding business segments. Even the base was low in a year ago quarter.
July 12, 2013 / 13:33 IST
Sintex Industries is set to declare its first quarter earnings today. Analysts on an average expect the plastic products manufacturer to report 37.1 percent growth year-on-year in profit after tax of Rs 64.1 crore, according to CNBC-TV18 poll.
After adding back the forex loss, the profit after tax for first quarter of previous year stood at Rs 75.7 crore. Hence, on an adjusted basis, the street is expecting a decline in profit by 15 percent on a Y-o-Y basis.Analysts feel the forex element could swing the result off the estimates.Out of USD 140 million worth of foreign currency convertible bonds (FCCBs), the company is hedged for USD 60 million. The street expects mark-to-market (MTM) loss of Rs 30 crore.Total income is seen going up by 11.7 percent to Rs 1,207 crore in April-June quarter from Rs 1,081 crore in a year ago period, driven by continued performance momentum in pre-fab and domestic custom moulding business segments. Even the base was low in a year ago quarter.Meanwhile, its earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to go down by 1.3 percent year-on-year to Rs 175 crore and operating profit margin is seen falling by 190 basis points to 14.5 percent versus 16.4 percent.Analysts feel the project execution challenges will keep the margins under pressure. Margins slipped 215 basis points in fourth quarter on a Y-o-Y basis.SegmentsProblems with company’s overseas custom moulding business (which contributes around 25 percent to revenue) will continue due to slowdown in Europe.Performance of domestic custom moulding business (which is 20 percent of total revenue) would continue to show improvement on the back of orders from non-automotive sector.Monolithic segment (around 20 percent contribution to revenue) will continue to remain sluggish in April-June quarter as well.Management GuidanceOn a consolidated basis, Sintex has guided towards revenue growth of 15 percent and EBITDA margin improvement of 100 basis points for FY14.Segementally, for FY14, the company has guided towards 25-30 percent revenue growth in pre-fabs (20 percent contribution to revenue) and 20 percent growth in custom moulding business (around 45 percent of total revenue).In January-March quarter, plastic products manufacturer had announced the acquisition of two bankrupt assets that are engaged in custom moulding in Germany and Poland at a consideration of Rs 170 crore.Also Read - NSE to exclude Sintex from F&O effective August 30 Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
