BGR Energy Q2 PAT seen down 19% to Rs 42 cr

BGR Energy's profit after tax is likely to fall by 19 percent year-on-year to Rs 42 crore in the second quarter of FY13.

Net sales are seen going up by 1.2 percent to Rs 781 crore from Rs 772 crore during the same period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to decline 5 percent YoY to Rs 105 crore in the quarter.

EBITDA margin is seen falling by 85 basis points YoY to 13.4 percent in the September quarter due to higher execution of EPC orders.

Analysts feel the revenues would decline on account of slower execution and high interest costs would continue to impact the profitability negatively.

Company was awarded 1 BTG (thermal power) project of 2x660MW in West Bengal worth Rs 1,900 crore.

Order book for the company stood at Rs 14,577 crore as on September 2012, including bulk tenders of Rs 8,600 crore from NTPC + Rs 2,200 crore of EPC + Rs 3,000 crore of BOP.

Investors should watch out for order pipeline and inflow guidance.

Profitability in the NTPC bulk tenders (in which BGR has reportedly bid aggressively) and improvement in company's deteriorating working capital cycle will also be watched by the street.