Thermax, Alstom T&D India hit 52-week low

Thermax (Rs 704) and Alstom T&D India (Rs 338) hit their respective 52-weeks on the BSE in intra-day trade.

Shares of Thermax and  Alstom T&D India, hit their respective 52-week low on the Bombay Stock Exchange (BSE) in intra-day trade on Friday.

Alstom T&D India dipped 3% to Rs 338, extending its fall after reported disappoint set of numbers for the quarter ended March 31, 2016 (Q4FY16). Since May 3, the stock declined 11% as compared to 1% rise in the S&P BSE Sensex.

The company reported a sharp 45% decline in net profit on back of 29% drop in net sales for the quarter ended March 31, 2016 (Q4). The company said sales were mainly impacted by realignment of revenue recognition milestones and phasing of project and export sales during the last quarter.

Order intake in Q4FY16 increased 10% at Rs 10,949 crore over the previous year quarter.

“Total order book at Rs 79,697 crore provides decent revenue visibility for the next two years. However, overall transmission and distribution (T&D) ordering still remains sluggish as major capex has already been done by Power Grid Corporation of India limited (PGCIL) and the State Electricity Boards (SEBs),” according to analyst at Motilal Oswal Securities.

Thermax, on the other hand, slipped 4% to Rs 704 on the BSE in intra-day trade. Since January 29, the stock has underperformed the market by falling 16% compared to 2% gain in the benchmark index post December quarter (Q3FY16) results.

The company had posted 11% decline in net profit on back of 8% fall in the operating revenue. Order book at end of Q3FY16 stood at Rs 4,767 crore (down 23% YoY). 

It is scheduled to announce January-March quarter results on May 25, 2016. Analysts at Prabhudas Lilladher expect weak sales due to low order carry.

“We expect inflow to be down 5% YoY to Rs 800 crore in Q4F16, due to lack of large order finalization in the system. Demand for base business is driven by sectors like food processing /dairy/pharma/tyres/beverages etc. Enquiry from large core sectors like steel, oil & gas/power/fertilizer remains muted and Thermax expects recovery in this sector to be few quarters away,” the brokerage house said in a results preview.