Earnings outlook: ACC quarter net seen down

Earnings outlook: ACC quarter net seen down
21 July 2010

Lower net realisations and despatches in Apr-Jun are likely to pull India’s leading cement maker ACC Ltd’s net profit down 23% from a year ago to INR3 .72bn rupees, a NewsWire18 poll of 11 brokerages showed.   
Net sales during the period is seen falling 2% to INR20.49bn. Sequentially, net profit and net sales for Apr-Jun are likely to decline 8% and 3%, respectively.   
Net sales is seen falling due to the 1.3% YoY decline in despatches to 5.35Mt owing to capacity constraints faced by the 26.3Mt company for over two quarters pending ramp up of its recently expanded capacities, said a pre-earnings note from Motilal Oswal Securities.
In contrast, the industry’s average despatches grew 9.1% in Apr-Jun.     Net profit estimates for ACC varied between INR3.41bn and INR4.13bn, while for revenue ranged between INR19.11bn and INR22.09bn.  
The Holcim group company will detail its second quarter earnings Thursday.
Published under Cement News