Views on BGR Energy 3QFY2014 results - Angel Broking

Views of Mr. Amit Patil (Research Analyst - Capital Goods, Angel Broking) on BGR Energy 3QFY2014 results:

BGR's top-line and bottom-line performance below estimates

"BGR Energy (BGR)'s top-line and bottom-line performances were below our estimates. The company reported subdued 3.8% yoy growth in its top-line to Rs. 836cr. The Construction and EPC contract segment grew by 5.7% yoy to Rs. 789cr while Capital goods segment declined by 19.8% yoy to Rs. 47cr. On the operating level, the company reported 158bp yoy contraction in EBITDA margin to 12.2%. Although, EBIT margins of Construction and EPC contract segment were flat yoy, sharp contraction in margins of capital goods segment led to contraction of blended margins. Consequently, profit declined by 19.5% yoy to Rs. 33cr. We recommend Accumulate rating on the stock with a target price of Rs. 120."

Source : Equity Bulls

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