Crompton Greaves' third quarter consolidated profit after tax is seen rising 41.7 percent year-on-year to Rs 87.9 crore, according to the average of estimates of analysts polled by CNBC-TV18.
Net sales are likely to increase 6.4 percent to Rs 3,566 crore during October-December quarter from Rs 3,352 crore in same quarter last fiscal.
Operating profit may jump 18.5 percent year-on-year to Rs 198 crore and margin may expand 60 basis points to 5.6 percent in the quarter gone by.
Company may report a steep jump in Y-o-Y profits due to low base of last year.
Topline growth may be reasonably healthy on account of healthy execution in domestic business and ramp up in international business in Q3.
Domestic business-On the domestic front, analysts expect the consumer segment to show a healthy growth, while power and industrial segments are likely to record moderate growth-Margins of the domestic business are expected to remain stable in both power and consumer segments; some improvement in case of the industrial segment may be seen
International business-Overall loss of subsidiaries may be at around Rs 55 crore-Analysts expect healthy order execution in the overseas subsidiaries, which may drive international revenues
Key things to watch out for:-Clarity on the promoters’ stake sale recently and listing timeline of the demerged consumer business-Order inflow guidance for FY15/FY16-Outlook on demand prospects of company’s domestic power and industrial segments-Guidance on the performance of the loss-making subsidiaries
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