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Crompton margins likely to decline in Q3
Transformer manufacturer Crompton Greaves' net sales are seen going up by 12% to Rs 2,693 crore from Rs 2,397 crore year-on-year. EBITDA is likely to go down 26% to Rs 252 crore from Rs 340 crore during the same period.
Transformer manufacturer Crompton Greaves is expected to report a consolidated profit after tax of Rs 140 crore in the third quarter of FY12, falling 40% as compared to Rs 233 crore in a year ago quarter.
Net sales are seen going up by 12% to Rs 2,693 crore from Rs 2,397 crore year-on-year. EBITDA is likely to go down 26% to Rs 252 crore from Rs 340 crore during the same period.
Operating profit margin is expected to be falling at 9.37% in the quarter ended December FY12 versus 14.19% in the corresponding quarter of last fiscal.
Expectations
- Expect moderate revenue growth aided by overseas subsidiaries and partially by the rupee depreciation
- Expect slowdown to continue in the domestic power segment
- Margins expected to decline YoY but improve QoQ due to cooling of commodity prices on a QoQ basis
- Expect consequent de-growth in PAT
Management so far has been unsuccessful in meeting its guidance of higher R&D expense and therefore reduced tax rate of 15%
