Adani Wilmar, Ambuja Cements to share Q3 results today; here’re earning previews for 2 Adani group firms

Adani Wilmar Ltd and Ambuja Cements Ltd are two Adani group firms that are scheduled to report their December quarter earnings today. While Ambuja Cements is expected to report a strong 50 per cent-plus growth in profit on a muted sales, Adani Wilmar is likely to see degrowth on fall in sales.

Axis Securities expects Ambuja Cements to report 50 per cent YoY jump in net profit at Rs 533 crore compared with Rs 369 crore in the same quarter last year. Revenue is seen rising 5 per cent to Rs 4,350 crore on a similar growth in volumes and higher realisations. It sees Ebitda margin expanding 670 basis points to 21.9 per cent 15.2 per cent YoY. Ebitda per tonne to be 45 per cent higher at Rs 1,176 on YoY, owing to lower cost while cost per tonne is seen falling 8 per cent to Rs 1,176.

ICICI Securities sees profit for Ambuja Cements to rise 54 per cent to Rs 568.20 crore on 1.9 per cent fall in sales at Rs 4,049.20 crore. It sees Ebitda margin at 21.1 per cent and Ebitda per tonne at Rs 1,222. Ambuja Cement's volumes are estimated to stay broadly flat, both on a YoY and QoQ basis. "Assuming realisation growth of 2 per cent QoQ, expect Ebitda per tonne to rise 35 per cent YoY," it said.

In the case of Adani Wilmar, the Adani firm recently came out with its December quarter update. Nuvama Institutional Equities, which has a coverage on Adani Wilmar stock, expected consolidated revenue and Ebitda to fall 13 per cent and 56 per cent YoY for the quarter against its initial expectations of falls of 11.4 per cent and 55 per cent YoY, respectively.

"We expect edible oils value to slip 21 per cent YoY, Industry Essentials value to remain flat YoY and Foods/FMCG value growth to be 28 per cent YoY. Standalone Q3 volumes are likely to grow 6 per cent YoY, but value shall decline 15 per cent YoY. Branded oil and foods did well due to festive/wedding season, recording best-ever volumes with their rural sales remaining robust. We anticipate GM/Ebitda to decline 125bp/193bp YoY. Adani Wilmar shall keep using regional approaches to push deep penetration. Price cuts in edible oil stay a concern," it said.

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