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Last Updated : Jan 31, 2013 01:51 PM IST | Source: Moneycontrol.com

Thermax may report 12% fall in Q3 profit on slow orders

Capital good maker Thermax is likely to see an around 11.8% (year-on-year) decline in net profit on slow execution of existing orders, according to CNBC-TV18 poll. Sales too will be down around 6.3% YoY, due to poor growth in order book. The company will announce Q3 number later in the day.

 
 
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Moneycontrol Bureau


Capital good maker Thermax is likely to see an around 11.8% (year-on-year) decline in net profit on slow execution of existing orders, according to CNBC-TV18 poll. Sales too will be down around 6.3% YoY, due to poor growth in order book. The company will announce Q3 numbers later in the day.


Overall, it has been a lackluster year so far for capital good sector and hence pressure on Thermax's topline and bottomline will continue in December quarter as well. Analysts on an average expect the company to report profit of Rs 84 against Rs 95 crore, YoY. Sales will be around 1189 crore versus 1269 crore,YoY.


The poll further states that so far, the Pune-based company has shown strong resilience in margins on softening commodity prices and cost efficiency measures, despite declining orders.


However, in Q3, EBITDA margins are expected to fall around 50 bps to 10.2%, YOY on rising costs and continued stiff competitive environment.


The company which manufactures industrial boilers and steam vaporisers is likely to pick up captive orders, post a sluggish environment that prevailed in H1FY13. Order inflow for the quarter is expected to remain healthy at Rs 1,400 crore versus Rs 600 crore, YoY.


Shares of the company were down around a percent to Rs 571 at 9:50 am.


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First Published on Jan 31, 2013 09:45 am
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