Emkay Equity Advisory has come out with its first quarter (April-June) earnings estimates for the engineering & capital goods sector. The brokerage house expects Thermax to report a 38.1 percent degrowth quarter-on-quarter (growth of 6.2 percent year-on-year) in adjusted net profit at Rs 71.4 crore.
Revenues are expected to decrease by 33.5 percent Q-o-Q (0.8 percent Y-o-Y) to Rs 975.9 crore, according to Emkay Equity Advisory.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 37.9 percent Q-o-Q (up 7.8 percent Y-o-Y) to Rs 103.9 crore. Emkay Equity Advisory report on Thermax
Led by strong order inflows in FY13 and stable order backlog, decline in revenues to be marginal at 1 percent Y-o-Y to Rs 9.8 billion in Q1FY14E. Energy (-0.4 percent Y-o-Y to Rs7.6 billion), Environment (-3 percent to Rs 3.5 billion).
Expect EBITDA margins to improve by 80 bps Y-o-Y to 10.6 percent led by favourable revenue mix.
Led by strong operational performance, expect net profit to grow by 6 percent Y-o-Y to Rs714 million–growth in net profit comes after 4 successive quarters of decline. Ability to sustain order inflows remains crucial for earnings forecast.
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