Nagarjuna Construction Q3 PAT seen up 29% at Rs 62 cr

Infrastructure firm Nagarjuna Construction is set to report standalone profit after tax at Rs 62 crore for the quarter ended December 2010, up 29% as compared to Rs 48 crore in same period the previous year.

Total income is seen going up by 24% at Rs 1,468 crore from Rs 1,187 crore (YoY).

Earning befoer interest, tax, deprecation and amortisation (EBITDA) is likely to go up by 25% at Rs 148 crore versus Rs 118 crore and EBITDA margin is seen steady at 10%.

Factors to watch:

-Expected pick-up in order inflows and better execution might improve revenue growth
-Effective management of fixed expenses are expected to keep margins in line with Q2FY11
-Expected rise in interest costs might impact PAT
-Company will need to post a revenue growth of >25% in H2FY11 to meet its revenue growth guidance of 20% for FY11
-Company had an order flow guidance of Rs 10000 crore for FY11; will need to add Rs 6500 crore new orders in H2FY11 to meet target
*Company added new orders worth Rs 2200 crore during October and November 2010; expects to add another Rs 4300 crore through the rest of FY11
-Company