Thermax Q1 PAT seen up 13% at Rs 74.7 cr

Thermax is expected to report a 13% rise in first quarter FY12 profit after tax to Rs 74.70 crore against Rs 66.17 crore in the year ago period.

Net sales are seen going up 21% to Rs 952.51 crore from Rs 789.78 crore year-on-year.

EBITDA is likely to go up 16% to Rs 111.06 crore from Rs 95.97 crore. But operating profit margin is expected to be at 11.66% versus 12.15% year-on-year.

Revenue traction is expected to remain strong owing to execution of large-value orders.

Thermax is going to report fall in margin led by higher execution of EPC orders.

Order book

Order backlog as of March 31st 2011 stood at Rs 6446 crore ((up 8% YoY))

Energy division contributed Rs 5400 crore and environment division contributed Rs 960 crore

Key factors to watch for -

Order intake particularly in the EPC segment to be watched out for

Order intake concerns linger as order finalizations are taking longer due to various macro concerns like high interest rate and inflation

Need to watch for management outlook, ability to sustain order inflow momentum and progress in boiler ventures