BHEL Q2: Analysts expect margins to remain under pressure

State-run power equipment manufacturer BHEL is set to announce its results for the quarter ended September 2012 today. Analysts on an average expect subdued revenues due to sluggish order inflows. Even margins are expected to remain under pressure due to increased pricing pressure and negative operating leverage, say analysts. Profit after tax is likely to go up by 2.4 percent year-on-year to Rs 1,446 crore in the three months ended September 2012 and net sales are seen going up by 11.2 percent to Rs 11,448 crore from Rs 10,299 crore during the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to go up by 12.7 percent YoY to Rs 1,930 crore in the second quarter. Analysts feel the operating profit margin will rise by 20 basis points to 16.9 percent versus 16.6 percent YoY. Declining commodity prices and rupee depreciation are expected to improve BHEL’s competitive positioning. more at: http://www.moneycontrol.com/news/result-poll/bhel-q2-analysts-expect-margins-to-remain-under-pressure_774421.html