Thermax Q3 earnings may be weak, profit seen down 2% to Rs 75cr

Pune-based engineering company Thermax's third quarter earnings are expected to be weak with profit falling 2 percent year-on-year to Rs 75 crore and revenue down 4 percent to Rs 1,103 crore, according to analysts polled by CNBC-TV18.

Operating profit may fall 15 percent to Rs 112 crore and margin may contract 136 basis points to 10.1 percent on yearly basis.

What to expect this quarter-Lower orderbook may lead to muted topline and profitability-No order announcements were reported for the 4th consecutive quarter-Decline in revenue led by lower opening order book at Rs 5200 crore (down 15 percent YoY)-Order inflow Rs 500-1000 crore-Fall in commodity prices may aid margins-Increase in other income; reduction in tax might support bottomline

Things to watch out for-Order inflow and orderbook situation-Commentary on impact and benefits of stricter emissions norms on power & powerequipment companies-Performance of TBW JV and international subsidiaries-Sustainability of margins in energy segment (Q2FY16 at 11 percent)-Improvement in environment business