Earnings outlook: ACC quarter net seen down

Earnings outlook: ACC quarter net seen down
Published: 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.