Sintex Industries Q1 PAT seen down 34% at Rs 62 cr

Plastic products manufacturer Sintex Industries' consolidated profit after tax is likely to decline by 34% year-on-year and 29% quarter-on-quarter to Rs 62 crore for the quarter ended June 2012, according to CNBC-TV18 estimates.

First quarter is generally a weak quarter for the company. Analysts on average expect the company to post a fall of 12% YoY and 5% QoQ in total income of Rs 977 crore during the first quarter of FY13 due to slowdown in monolithic business and its international custom moulding business.

EBITDA is seen going down by 28% YoY and 15% sequentially to Rs 136 crore.

Margins are also likely to remain under pressure in the prefab and monolithic segments. Operating profit margin is expected to decline at 13.9% as against 17% in a year ago period and 15.6% in previous quarter.

Monolithic business – key challenging business vertical for the company

Analysts expect a slowdown in the monolithic business due to delayed payments and a stagnant order book

The company continues to face problems at 7 out of 19 sites under operations of its monolithic division

Pre-fab business

Pre-fab business is expected to report strong growth

Custom moulding business

Overseas custom moulding business is likely to face macroeconomic headwinds led by slowdown in key markets of US / EU.

Domestic custom moulding business is likely to improve sequentially on the back of settling of labour issues at Maruti

Currency depreciation could lead to mark-to-market losses

FCCB concerns

Company had raised USD 290 million via FCCBs in 2008, which will be due in March 2013

Company has USD 110 million unused cash from FCCB proceeds.