ICICI Securities has come out with its first quarter (April-June) earnings estimates for the Capital Goods sector. The brokerage house expects Texmaco to report a 3.4 percent degrowth quarter-on-quarter (degrowth of 365 percent year-on-year) in net profit at Rs 10.9 crore.Sales are expected to decrease by 2.9 percent Q-o-Q (up 146.8 percent Y-o-Y) to Rs 222 crore, according to ICICI Securities.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 16.5 percent Q-o-Q (down 520 percent Y-o-Y) to Rs 11.5 crore.ICICI Securities's report on TexmacoWe estimate sales to grow by 76 percent Y-o-Y to Rs 2.4bn aided by non IR wagon dispatch and pick-up in foundry exports. EBITDA margin to increase by 8pps to 5.2 percent vs EBITDA loss in Q1FY16. PAT to be at Rs 109mn, vs loss of Rs 41mn in Q1FY16. Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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