UltraTech Cement Q2 profit may fall 38 per cent
UltraTech Cement, which has Pan India presence, is expected to show a 38 percent decline year-on-year in standalone profit at Rs 370 crore but revenue from operations may grow 4 percent to Rs 6,380 crore.
According to average of estimates of analysts polled by CNBC-TV18, operating profit during the quarter is seen falling 2 percent to Rs 1,135 crore and margin may shrink around 100 basis points to 17.8 percent compared with same quarter last fiscal.
UltraTech numbers are not totally comparable due to acquisition of Jaiprakash Group’s cement assets.
Analysts expect sales volumes growth of 11 percent at 12.4 million tonnes due to inorganic expansion, but Ultratech volumes are likely to be flattish.
Profitability may impact due to higher consolidation cost of Jaypee plants, lower realisations and higher freight & energy costs. PAT may also hit by higher interest and depreciation cost.
Key issues to watch out for would be volume growth recovery and outlook; cement pricing outlook and sustainability; and update on Jaiprakash Associates acquisition.