October 12, 2016 / 16:00 IST
Kotak Securities has come out with its second quarter (July-September) earnings estimates for the automobiles sector. The brokerage house expects
WABCO India to report net profit at Rs 65.5 crore, down 11.3 percent quarter-on-quarter.
Net Sales are expected to decrease by 5.4 percent Q-o-Q (up 18.3 percent Y-o-Y) to Rs 507.5 crore, according to Kotak Securities.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 10.4 percent Q-o-Q (up 43.5 percent Y-o-Y) to Rs 93.5 crore.
Kotak Securities' report on WABCO India
We estimate revenues to increase by 18% yoy, led by higher content per vehicle due to mandatory ABS in MHCVs from October 1, 2016 and some growth in the after-market segment.
We expect EBITDA margin to decline by 100 bps qoq due to negative operating leverage led by weakness in MHCV industry volumes.
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