KR Choksey has come out with its first quarter (April-June) earnings estimates for the construction and real estate sector. The brokerage house expects BGR Energy to report a 55 percent degrowth quarter-on-quarter (decline of 28 percent year-on-year) in net profit at Rs 24 crore.
Revenues are expected to decrease by 40 percent Q-o-Q (up 5 percent Y-o-Y) to Rs 641 crore, according to KR Choksey.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 39 percent Q-o-Q (down 3 percent Y-o-Y) to Rs 85 crore.
EBITDA margin or operating profit margin is likely to be at 13.3 percent in June quarter as against 13 percent in March quarter and 14.4 percent in a year ago period. KR Choksey report on BGR Energy
We expect subdued growth in sales as EPC contract are nearing completion and lull in order inflows.
Low margin oder (TRN project) and change in sales mix to lead to decline in margin on a Y-o-Y basis.
Higher interest expense to erode earnings.
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