Thermax Q2 PAT may dip 20.3% at Rs 72.6 cr: Motilal Oswal
Sales of Thermax are expected to increase by 24.2 percent Q-o-Q (down 10.1 percent Y-o-Y) to Rs 1,071.5 crore, according to Motilal Oswal.
October 31, 2013 / 14:51 IST
Motilal Oswal has come out with its second quarter (July-September) earnings estimates for the capital goods sector. The brokerage house expects Thermax to report a 44.5 percent rise quarter-on-quarter (down 20.3 percent Y-o-Y) in net profit at Rs 72.6 crore.
Sales of Thermax are expected to increase by 24.2 percent Q-o-Q (down 10.1 percent Y-o-Y) to Rs 1,071.5 crore, according to Motilal Oswal.Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to rise by 31 percent Q-o-Q (down 12.4 percent Y-o-Y) to Rs 106.6 crore.Motilal Oswal's Report on Thermax:The domestic ordering environment remains muted, particularly given the tight liquidity conditions. In 1QFY14, excluding the Reliance order, domestic order intake was just INR 5.2 billion and compares with an average of INR 9 billion-11 billion/quarter during April-December 2012.Execution is likely to remain constrained, particularly for the Energy business. In 2QFY14, we expect energy business revenues to decline
12 percent Y-o-Y and environment business revenues by 4 percent Y-o-Y.Increasing exports is a priority across businesses. The Chairperson stated in the recent issue of fireside, "We have to continue to focus
on the export market and try and make up for the shortfalls in domestic order bookings".Consolidated PAT has been impacted by losses in subsidiaries (down 21 percent in FY13). However, in 1QFY14, subsidiaries reported PAT of INR 27 million (after seven consecutive quarters of losses), largely driven by improved performance in Danstoker and lower losses in Chinise subsidiaries (expect PAT breakeven by the end of FY14).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. 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!
