IVRCL-IVRCL Q1 PAT seen down 10% at Rs 25 cr

Infrastructure company IVRCL is expected to report a fall of 10% (YoY) in profits for the first quarter of FY12. During the period, standalone profit after tax of the company is likely to be at Rs 25 crore as against Rs 28 crore in the corresponding quarter last fiscal.

However, standalone total income is seen going up 15% to Rs 1,275 crore from Rs 1,106 crore year-on-year.

Operating profit margin is seen declining at 9.04% in April-June quarter versus 9.11% in the year ago period.

Expectations

Expect moderate topline growth and marginal dip in margins

Expect significant contraction in bottom line due to expectation of much higher interest costs

Company has strong order book position
-Order book at the end of Q4FY11 stood at Rs 21600 crore
-Total order inflows for the quarter stood at Rs 890 crore
* Rs 500 crore worth of orders came from the buildings segment

Ability to manage working capital cycle needs to be watched