Crompton Greaves is expected to report a 37.3 percent growth in consolidated profit after tax Rs 80.2 crore in July-September quarter compared to Rs 58.4 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18.
Net sales may increase 9.5 percent to Rs 3,508 crore in the quarter ended September 2014 from Rs 3,205 crore in corresponding quarter last fiscal driven by overseas business especially due to growth from international power systems.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen going up by 12.2 percent year-on-year to Rs 181 crore and margin may expand by 20 basis points to 5.2 percent in the quarter gone by.
Standalone business is expected to report a 9-10 percent revenue growth led by consumer business while industrial and power systems business may continue to remain muted.
Analysts expect overseas business of Crompton to show better profitability during second quarter on the back of restructuring initiatives.
They expect subsidiaries to report a loss of Rs 50 crore during the quarter. Order inflows for September quarter are expected to be around Rs 2,700-2,850 crore.
Key issues to watch out for are margin expansion in the power systems segment, given higher exports and increase in contribution from switchgears; improvement in the overseas automation and systems business performance, given execution of recent better margin order wins; and performance improvement in Hungary / Canada
Meanwhile, on July 17, 2014, the company had said it will look to de-merge its consumer business as a separate listed company. Company formed a panel to examine all aspects of demerger, listing.
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