Will Damanis’ 2nd biggest holding deliver healthy Q4 numbers today?


NEW DELHI: India Cements, where seasoned investor Radhakishan Damani and his brother Gopikishan held over 21 per cent stake as of last available shareholding data, is set to announce its March quarter results later on Monday.

Analysts largely expect the N Srinivasan-led cement maker to report profit in the Rs 40-75 crore range on double-digit sales growth. Analysts said higher demand in southern markets would aid volume growth, while cost-saving measures and strong YoY realisations should drive operating performance.

Anand Rathi expects the company to report Rs 73.2 crore profit, up 18 per cent sequentially. The cement maker had reported Rs 111 crore loss for the year-ago quarter. Sales are projected to rise 25.4 per cent YoY to Rs 1,444 crore, up 24.5 per cent sequentially. Operating profit margin is seen at 16.4 per cent.

The brokerage expects the company to report 8 per cent volumes growth at 2.86 million tonnes against 2.65 million tonnes a year-ago. Realisations are seen improving 16.1 per cent to Rs 5,051 per tonne from Rs 4,352 per tonne YoY. Ebitda per tonne is seen spiking 225 per cent to Rs 828 per tonne from Rs 255 per tonne.

Reliance Securities pegs profit figure at Rs 75.10 crore, up 21 per cent sequentially. It projects Ebitda to rise 244 per cent YoY to Rs 232 crore and sales to grow 16.5 per cent YoY to Rs 1,342 crore.

Damani brothers held 21.14 per cent stake in the cement maker as of March 31, which was worth Rs 1,328 crore as of Friday’s close.

Motilal Oswal Securities, meanwhile, has some muted expectations. It sees profit at Rs 59.50 crore on a 13 per cent sales growth of Rs 1,301 crore. This brokerage expects March quarter volumes rising mere 1 per cent at 2.68 million tonnes while expecting a flat realisations at Rs 4,849 per tonne. Blended Ebitda per tonne is seen at Rs 776, the brokerage said.

“We estimate India Cements volumes to rise 25 per cent QoQ (up 11 per cent YoY). We also estimate realisations to dip 2 per cent QoQ (up 10 per cent YoY). With increase in fuel cost, estimated Ebitda per tonne will dip 28 per cent QoQ. However, due to the low base, the Ebitda per tonne t will be up 2.5 times YoY,” said Edelweiss Securities.



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