India Cements Q2 PAT may fall 64% to Rs 17.5 cr: Poll

Chennai-based India Cements will declare its results today for the quarter ended September (second quarter) 2013. Watch out for cement demand and pricing outlook of the company, especially in South India; expected timeline and potential cost savings from captive coal block in Indonesia and AP power plant; and roadmap for stake increase in Trinetra Cement (Rajasthan plant).

According to a CNBC-TV18 poll, analysts on an average expect net sales of the company to rise 1 percent year-on-year to Rs 1,137 crore while PAT may fall 64 percent on yearly basis to Rs 17.5 crore in the quarter gone by due to lowe realisation.

Sales volumes are expected to be better year-on-year, but realizations are likely to be poorer Y-o-Y though sequentially pricing has improved.

Sales volumes are expected to grow by 3.7 percent Y-o-Y (down 2 percent Q-o-Q) to 2.6 million tonne. Analysts feel better pricing environment (strong uptick in Andhra Pradesh) may result in 2 percent sequential growth (down 2.2 percent Y-o-Y) in realisation.

Earnings before interest, tax, depreciation and amortisation are seen going down 19 percent Y-o-Y to Rs 169 crore during September quarter, driven by a fall in realisation, higher freight cost and other expenses.

India Cements imports majority of coal requirement (more than 70 percent), but any benefit of fall in international prices offset by rupee depreciation.

Operating profit margin may decline 360 basis points to 14.9 percent in second quarter from 18.5 percent in a year ago period.

Meanwhile, its IPL revenues are expected to be at around Rs 7 crore in September quarter from IPL as against Rs 5.2 crore in a corresponding quarter of last fiscal.