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Last Updated : Aug 07, 2012 04:20 PM IST | Source: CNBC-TV18

Punj Lloyd likely to turn profitable in Q1 YoY

Punj Lloyd is set to declare its first quarter results of the financial year 2012-13 today. Analysts on an average expect the profit after tax at around Rs 5 crore as against loss of Rs 12.3 crore in a year ago period, but the profit is likely to fall by 44.5% quarter-on-quarter.

 
 
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Punj Lloyd is set to declare its first quarter results of the financial year 2012-13 today. Analysts on an average expect the profit after tax at around Rs 5 crore as against loss of Rs 12.3 crore in a year ago period, but the profit is likely to fall by 44.5% quarter-on-quarter.


Net sales are seen going up by 17% YoY to Rs 2,650 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to go up by 16% YoY to Rs 210 crore during the same quarter. However, sales and EBITDA are seen going down by 12.8% and 17.7% QoQ.


EBITDA margin is likely to decline by 10 basis points YoY and 50 basis points QoQ to 7.9% in the quarter ended June 2012.


Analysts expect the company to continue on its trajectory of improvement in operational performance.


Revenue growth is expected to be driven by healthy order book, sustained order inflow momentum and execution of existing order backlog.


Analysts feel EBITDA margin is expected to hold up around 8% level this quarter as well.


Company will continue to face challenges from higher interest and depreciation charges, which will negate operational gains and leading to a muted bottomline for Q1FY13


Analysts expect infrastructure segment to be the largest contributor to the revenues.


Although, the company has not reported any orders on the exchanges in the quarter gone by, analysts expect order inflow momentum to remain robust.


Order book / order inflow


Total order inflow in the previous financial year 2011-12 stood at Rs 13,817 crore as against Rs 9,978 crore in FY11.


In the previous quarter that is fourth quarter of FY12, the total order inflow was at Rs 1,453 crore.


As of April 30, 2012, company has healthy order backlog of Rs 27,276 crore.


Brokerages are keenly watching for continued momentum in order inflows, consistency in maintaining healthy EBITDA margin (over 8%) and efforts by the management to bring down the interest costs.


According to analysts, main concerns for the stock are uncertainty over receivable claims; increased leverage on the company’s balance sheet and auditor qualifications; stretched working capital; and low & volatile operational margins.


Punj Lloyd’s leverage remains as high as 1.54 times of net debt / equity of FY12

Earlier, the management said the company was looking to maintain EBITDA margin in the range of 8-11% and it would continue to explore opportunities in Southeast Asia, Middle East and Africa.

First Published on Aug 7, 2012 09:43 am
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