Motilal Oswal sees the EBITDA margin expand by 630 bps YoY to 20 percent and the adjusted PAT rise 61 percent
Ambuja Cements, on October 18, is likely to report strong double digit growth in September quarter earnings, driven by operating income and lower tax cost.
Brokerages expect year-on-year (YoY) profit to increase in the range of 40-109 percent for the third quarter while earnings before the interest, tax, depreciation and amortisation (EBITDA) growth could be in the range of 35-70 percent, backed by higher realisation though volumes may decline YoY due to weak demand in west.
"Volume is expected to fall 3.5 percent YoY, but realisations are expected to expand by 5.6 percent YoY. Due to higher realisations and lower costs, EBITDA is expected to increase 73.4 percent," said Prabhudas Lilladher which expects the profit growth around 73 percent YoY.
The company follows January-December as its financial year.
Motilal Oswal sees the EBITDA margin expand by 630 bps YoY to 20 percent and the adjusted PAT rise 61 percent, compared to same quarter in 2018, but the revenue may fall 3 percent YoY.Key issues to watch out for would be volume growth outlook, status on various on-going expansions, cement pricing outlook and sustainability and cost curve trend in CY19.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.