Ambuja Cements net seen down 45%; realisation may be weak

Ambuja Cements is likely to report weak December quarter earnings due to tax credit of Rs 43.80 crore. Its net profit may stand at Rs 181 crore in October-December quarter (Q4CY15), down 44.9 percent from Rs Rs 328.6 crore in year-ago period. According to a CNBC-TV18 poll, its total income in Q4 may skid 1.9 percent at Rs 2360 crore against Rs 2404.9 crore in year-ago period.

In Q4FY15, operating profit is likely to slip 11.5 percent at Rs 317 crore versus Rs 358.2 crore while operating profit margin may stand at 13.4 percent versus 14.9 percent (YoY).

Analysts polled by CNBC-TV18 say topline may dip due to weak realisations though volume growth is expected. Sales volumes may grow 3 percent (YoY) to 5.6 metric tonnes.

However, realisations may be under pressure led by significant price correction in West and Northern markets. Ambuja cements has no presence in South.