Wednesday, October 31, 2012

Thermax Q2 in-line with forecast, net down 11% to Rs 91 cr


Thermax  's net profit fell lower than expected 11 percent year-on-year to Rs 91 crore in the September quarter Net sales, which too were in-line with forecast, dropped over 9 percent to Rs 1,181 crore from Rs 1,303 crore during the same period.

Analysts on an average had expected net profit of Rs 84 crore on net sales of Rs 1,181 crore for the quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) slipped to Rs 121.7 crore from Rs 140 crore YoY. EBITDA margin declined 50 basis points to 10.3 percent in the quarter.

During the quarter under preview, the capital goods makers had an order backlog of Rs 4412 crore, as against Rs 5770 crore which it had in the corresponding quarter last year.

Thermax in a filing to the exchanges said that despite a tight working environment domestically and globally it cold post decent numbers. Analysts, however say that muted ordering activity in the past two quarters have kept the topline growth under check.

Going ahead, experts feel issues related to fuel (coal) and increasing competitive intensity (in the BTG space) are an overhang on order inflows and margins for the company in the long term.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd 

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