ACC Ltd's Q1 PAT may decline 40% on higher expense: Poll

ACC Ltd is expected to post around 40 percent year-on-year drop in profit in June quarter on higher depreciation and freight cost, states CNBC-TV18 poll. The cement firm had posted Rs 414 crore profit in corresponding quarter of last year.

Sales could also decline over 4 percent to Rs 2800 crore as demand remained weak in most markets  Analysts also expect EBITDA margins to shrink around 800 bps to Rs 14.5 percent. Read This: Ambuja Cements, ACC down after Holcim tweaks stakes Factors likely to impact ACC’s numbers
-Volumes may be flattish on weak demand
-Despatches growth will almost be flattish and may grow hardly a percent Y-o-Y.
-Average realisations are likely to decline 5-6 percent Y-o-Y
-Feedback from cement dealers suggests that in 1Q FY14, pan-India cement prices were down around 6 percent Y-o-Y 
-Prices were weak in most other parts of the country
-Prices in south market gained (q-o-q) in Q2CY13 but extremely weak demand will hit topline.
-ACC has the highest exposure to east and central India.
-Demand is likely weakest in north India, while east and central India was relatively better. Incase net profit comes in much lower:
Watch out for any “Provisioning for Competition Commission of India (CCI) penalty”:
COMPAT served an interim order directing cement companies to deposit 10% of the total penalty levied by the CCI
ACC's penalty amount was Rs. 1148 crore and hence 10 percent will be around Rs.114.7crore Key issues to watch out
-Volume growth recovery and outlook
-Cement pricing outlook, considering volatility in 2QCY13
-Progress in ongoing capex for 5MT Jamul expansion
-Any Commentary with regard to merger of the cement twins