Shree Cement Q2 PAT seen up 3.2 times to Rs 192 cr

Shree Cement is set to announce its results for second quarter of financial year 2012-13 today. Analysts on an average expect profit after tax to grow by 3.2 times year-on-year to Rs 192 crore in the quarter.

Revenue is expected to go up by 6 percent YoY to Rs 1,335 crore and EBITDA (earnings before interest, tax, depreciation and amortisation) is likely to rise by 9.5 percent to Rs 365 crore during the same period.

EBITDA margin is seen improving to 27.3 percent in the October-December quarter as against 26.5 percent in a year ago period.

Investors should watch out for volume and pricing outlook for North India; pet coke price trend and update on any forward agreements for merchant power; and update on cement capacity addition and capex plans.

According to analysts, key challenge in cement space is that lower realizations and higher freight cost would impact cement business profitability.