GVK Power Q2 PAT seen up 8% at Rs 46 cr

GVK Power and Infrastructure is expected to report a consolidated profit after tax (PAT) of Rs 46 crore in the second quarter of FY12, a growth of 8% as compared to Rs 43 crore in the corresponding quarter of last fiscal.

Consolidated net sales are seen going down 5% to Rs 476 crore from Rs 503 crore during the same period.

EBITDA is likely to go down 15% to Rs 123 crore in the July-September quarter of FY12 versus Rs 145 crore in a year ago period.

Operating profit margin is expected to be at 25.82% versus 28.89% year-on-year.

Top line is likely to decline on account of lower PLF as the interim arrangement with RLNG for gas supply got over in June.

Company is yet to consolidate MIAL operations --- consolidation will take place in Q3FY12.

Key developments in Q2FY12

Company reported the acquisition of 14% stake in BIAL and acquisition of Hancock coal mines in Q2FY12
* Increased stake in BIAL to 43.5% by buying 14.5% stake from Siemens
* Company also bought Hancock coal mines for USD 1.26 billion through GVK Coal Developers

Key factors to watch for

-Traffic growth in airports and PLF for power plants
-Funding for GVK's projects and Hancock deal remains a key challenge going forward