ACC, a Adani group cement maker, is expected to report a double digit drop in profit for the March quarter on a muted single digit rise in sales. Margin may contract on year-on-year (YoY) basis, analysts said while expecting YoY volume growth in 5-6 per cent range.
Sharekhan expects profit for ACC to drop 26.3 per cent YoY to Rs 289 crore from Rs 392 crore in the year-ago quarter. Sales are seen rising 7.8 per cent YoY to Rs 4,774 crore from Rs 4,427 crore YoY. Operating profit margin is seen contracting 345 basis points YoY to 10.9 per cent.
Kotak Institutional Equities said ACC may report volumes of 8.3 million tonne of the quarter, up 6 per cent, thanks to a strong growth in January-February and seasonal tailwinds. It estimates blended realisations to increase 4.1 per cent YoY (0.2 per cent QoQ), led by muted prices towards the second half of the quarter.
The brokerage, which sees profit falling 21.6 per cent YoY to Rs 307 crore said costs per tonne may rise 7.5 per cent but may fall 3.2 per cent sequentially, largely led by power-fuel cost and operating leverage. Ebitda per tonne is seen at Rs 676 per tonne, down 17 per cent YoY, 38 per cent QoQ, led by lower costs.
Ahead of quarterly results, shares of ACC were trading at Rs 1,742, up 0.22 per cent.
Nirmal Bang Institutional Equities expects ACC to log 11.4 per cent drop in profit at Rs 347 crore for the quarter on a 4.1 per cent YoY rise in sales at Rs 4,606 crore. Ebitda is seen falling 1.2 per cent to 626 crore while Ebitda margin is expected to come in at 13.6 per cent against 14.2 per cent YoY.
Also read: Reliance Capital shares jump 3%; Hinduja Group entity emerges as sole bidder, offers Rs 9,650 crore