India Cements earnings outlook

India Cements earnings outlook
15 January 2010

South India’s largest cement maker India Cements Ltd is likely to post a mere 4% year-on-year rise in Oct-Dec net profit at 646 mln rupees, due to a fall in net realisation, according to a NewsWire18 poll of seven brokerages.

Net sales are seen falling 1% to INR8.68bn rupees, which includes revenue of INR85m from Indian Premier League franchise, and other operating income.

Third-quarter volume growth is seen up 35% at 2.7Mt, which includes 1Mt of clinker. The company’s volume growth is seen well above pan-India average growth of 26%.

However, the robust growth in volume is likely to be offset by a nearly 15% on year slide in net realisation for the quarter.
Published under Cement News