Crompton Q1: KR Choksey expects net to fall 38% at Rs 53 cr
KR Choksey expects Crompton Greaves to report a 111 percent growth quarter-on-quarter (degrowth of 38 percent year-on-year) in net profit at Rs 53 crore.
August 05, 2013 / 17:33 IST
KR Choksey has come out with its first quarter (April-June) earnings estimates for the capital goods sector. The brokerage house expects Crompton Greaves to report a 111 percent growth quarter-on-quarter (degrowth of 38 percent year-on-year) in net profit at Rs 53 crore.
Revenues are expected to decrease by 9 percent Q-o-Q (up 10 percent Y-o-Y) to Rs 3,089 crore, according to KR Choksey.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 69 percent Q-o-Q (down 21 percent Y-o-Y) to Rs 131 crore.EBITDA margin or operating profit margin is likely to be at 4.3 percent in June quarter as against 2 percent in March quarter and 5.9 percent in a year ago period.KR Choksey on Crompton GreavesGrowth in domestic consumer segment of 18 percent and moderate growth in power system segment to aid consolidated sales growth 10 percent. Execution in international power system segment needs to be watch out for.We expect margins to be subdued at 4.3 percent as European operations will take couple of quarters to stabilize coupled with pricing pressure in the industry. Impact of transfer of projects/ Rework/ rejections on margins needs to be watch out for.Higher interest cost on account of acquisition of ZIV to further impact PAT. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
