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The drop in Crompton Greaves' profit may be on account of lower losses from subsidiaries. Some analysts believe Crompton‘s turnaround story will play out during April-June quarter while some still believe strain in profitability witnessed in FY12 / FY13 is likely to persist at least in the near-to-mid term.
KR Choksey expects Crompton Greaves to report a 111 percent growth quarter-on-quarter (degrowth of 38 percent year-on-year) in net profit at Rs 53 crore.
Motilal Oswal expects Crompton Greaves to report a 201.6 percent growth quarter-on-quarter (degrowth of 22.5 percent year-on-year) in net profit at Rs 76.2 crore.
Major broking firms are bearish on Crompton Greaves post dismal fourth quarter results. Morgan Stanley however, remains overweight on the stock.
Crompton Greaves' fourth quarter profit after tax will fall 30.2 percent year-on-year to Rs 70 crore because of continued losses in the subsidiaries.
Nirmal Bang has come with its March quarterly earning estimates for capital goods sector. According to the research firm, capital goods sector is expected to report subdued performance for an otherwise seasonally strong January-March quarter.
Kotak Securities has come with its March quarterly earning estimates for capital goods sector. The research firm expects aggregate revenue growth of capital goods sector to be 6.7% YoY in the Mar-ending quarter, driven mainly by L&T, Cummins, and other midcaps and aggregate PAT is expected to post modest growth of 2.7% yoy in Q4 FY13.