India Cements Q4 PAT seen down 26% to Rs 48 cr

India Cements will announce its fourth quarter (January-March) results today. According to CNBC-TV18 poll, analysts on an average expect the company's profit after tax to slip 26 percent year-on-year to Rs 48 crore during the quarter.

However, net sales are seen going up by 8 percent to Rs 1,202 crore from Rs 1,116 crore Y-o-Y, led by higher sales volume and higher cement prices Y-o-Y.

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Sales volumes are expected to grow by 2.4 percent Y-o-Y (10 percent sequentially) to 2.66 mt. Cement prices rose Rs 10-15 per 50 kg bag during the quarter.

IPL revenues: Analysts expect revenues from IPL at Rs 58 million in Q4FY13 as against Rs 2 million in Q4FY12 and Rs 90 million in Q3FY13.
 
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall 6 percent Y-o-Y to Rs 202 crore and operating profit margin is seen declining 250 bps Y-o-Y to 16.8 percent during the quarter.

Analysts feel the company, going ahead, will be benefited from commissioning of its captive power plant and Indonesian mines, and lower interest costs as a result of scaling down of capex plans.

Investors should watch out for following key issues:

-Demand and pricing outlook, especially in South India

-Expected timeline for supplies and potential cost savings from captive coal blocks in Indonesia and AP power plant

-Roadmap for increase in stake in Trinetra (Rajasthan plant)