India first quarter market expectations
Indian cement companies are expected to post higher net profits and sales in the first quarter of the current fiscal (April-June FY13) thanks to improved prices and higher demand.
However, gains in profits for most cement companies will be impacted by rising costs owing to higher railway-freight charges. Besides, rupee depreciation will increase the cost of imported coal, a key raw material and fuel for the industry, according to brokerage Kotak Securities.
Market expectations for ACC, a Holcim Group company which is to report on 26 July, see an average estimate of six analysts forecast net profit to rise nine per cent to INR3.66bn (US$66m) while sales are expected to increase 13.5 per cent to INR27.28bn.
Holcim's other Indian concern, Ambuja Cements will also report on the same day as ACC. An average estimate of five analysts forecast the Holcim unit's net profit to rise 31% to INR4.54bn while sales are expected to rise 17 per cent to INR25.43bn.
The country's leading cement producer, UltraTech Cement, is forecast to post a 15% rise in sales to INR50.22bn, according to an average estimate of six analysts while net profit is expected to increase 4% to INR7.1bn. According to Motilal Oswal Securities cement sales volume will grow 6% on year while product prices increased by 6.7 per cent to INR4014/t. (Source: Fox Business)