NCC Q2 PAT seen down 41% at Rs 27 cr

NCC (formerly known as Nagarjuna Construction) is expected to report a standalone profit after tax of Rs 27 crore in the second quarter of FY12, a fall of 41% as compared to Rs 46 crore in the corresponding quarter of last fiscal.

Total income is seen going up by 6% to Rs 1,276 crore from Rs 1,201 crore during the same period.

EBITDA on standalone basis is likely to go up by 2% to Rs 126 crore in the July-September quarter of FY12 versus Rs 123 crore in a year ago period.

Operating profit margin is expected to be at 9.88% versus 10.27% year-on-year.

Expectations

Revenue growth expected to be moderate

High interest cost and working capital cycle impacting bottom line
* Debt at the end of FY11 stood at Rs 2484 crore on a standalone basis; Rs 4574 crore on a consolidated basis
* Debt/Equity on standalone basis stood at 1.04 times; D/E on a consolidated basis stood at 1.78 times

Company announced orders worth Rs 630 crore during the second quarter

Key factors to watch for --

Pick up in order intake and improvement in EBITDA margin need to be watched

Ability to manage interest costs needs to be watched