India Cements is expected to report net profit at Rs 25 crore in first quarter of FY16 against net loss of Rs 2.96 crore in the year-ago period, according to average of estimates of analysts polled by CNBC-TV18.
Revenue is seen falling 9 percent year-on-year to Rs 1,120 crore, impacted by lower sales volume that is expected to decline by 13 percent Y-o-Y to 2.25 million tonnes. Realisations may drive topline led by strong pricing trend in the South India.
Operating profit is seen rising 19 percent year-on-year to Rs 190 crore and margin may expand 400 basis points to 17 percent in June quarter, driven by higher realisations and fall in international coal prices (it imports more than 70 percent of coal requirement).
Key issues to watch out for would be improving political/economic environment & resolution of AP issue, demand & pricing outlook, especially in South India and timeline & capex plan over Tamil Nadu plant expansion of 2.6 million tonnes.
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