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We expect BHEL’s 1QFY12 revenues and PAT to increase by 15% and 13% YoY
respectively. We forecast material costs as a percentage of sles to increase by
1ppt, but the impact is broadly offset by employee costs falling as a
percentage of revenues.
L&T should report E&C revenue growth of 25% on a weak base. We expect
margins to decline in E&C by 60-70bps. Order inflows will again be watched
though orders announced for 1Q are running strong already at Rs130bn+.
JPA will report weaker profits YoY as margins come down in cement on higher
coal costs. Expect real estate and construction to post better Ebit YoY.
We expect a 15% YoY growth in consolidated revenues and 8% in PAT for
Crompton in 1QFY12. We believe that consumer and industrial business will
continue to grow sharply, while domestic power business is likely to disappoint
again. International business should benefit from appreciation of Euro
compared to 1QFY11 levels.
We forecast Mundra’s traffic to increase by 24% YoY, to 15.7mt in 1QFY12,
with strong growth in coal (+56% YoY) and container (+26% YoY) traffic. This
should translate into revenue and PAT growth of 30-31% YoY (to Rs5.4bn and
2.8bn respectively).
We expect ABB revenues to increase 25% YoY in 2QCY11 and Ebitda margins
to expand by 40bps, to 6.5%. We forecast Ebitda to grow by 33% YoY and
adjusted profit by 12% YoY. The company had a forex loss of Rs227m in
2QCY10, and consequently reported PAT should increase by 78% YoY, from
Rs383m in 2QCY10 to Rs682m in 2QCY11.
We expect IRB’s revenues to increase by 39% YoY to Rs7.1bn, driven
primarily by a 51% YoY growth in EPC revenues. Growth in Ebitda should be
lower at 19% YoY, due to higher proportion of EPC revenues. We expect
interest expense to rise sharply, and consequently PAT should expand by 3%
YoY, To Rs1.2bn.
We expect 400MW WTG sales for Suzlon in 1Q, resulting in a 63% YoY
increase in revenue, to Rs23.5bn. We expect Suzlon Wind to report Ebitda of
Rs1.4bn in 1Q. However, high depreciation and interest costs should mean
that the company again reports a loss at the PAT level.
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