ACC, Ambuja Cements to report Q3 earnings today, shares gain

Cement major ACC is expected to post 50 per cent year-on-year jump in net profit for the July to September quarter on account of higher realisation. A brokers' poll by NDTV sees net profit to rise to Rs 251 crore in the September quarter over Rs 168 crore last year.

Sales are seen rising 14 per cent year-on-year at Rs 2,446.5 against Rs 2,150 crore last year.

Shares in ACC, India's fourth largest cement company by market value, traded 1.15 per cent higher at Rs 1,444 at 11.50 a.m.

Price increases in all regions are likely to boost average realisations by 13 per cent year-on-year at Rs 4,411 per tonne. Overall dispatches though likely fell 4.2 per cent year-on-year to 5.45 MT. Ebitda margins, a key measure of profitability, are expected to rise 7 per cent year-on-year to 17.3 per cent.

Ambuja Cements, India's second biggest cement firm by market cap, is likely to report 98 per cent year-on-year jump in net profit on account of higher realisation. Net profit is expect to growth at 339 crore against Rs 171.5 crore last year. Sales are seen up 21.6 per cent year-on-year at Rs 2,195.5 crore against Rs 1805.1 crore.

Dispatches are seen growing at 0.9 per cent year-on-year at 4.85MT while average realisation is seen up 19 per cent year-on-year to Rs 4476 per tonne. Ebitda margin is seen up 8.1 per cent year-on-year at 25.4 per cent.

Shares in Ambuja Cements traded with nearly 2 per cent gains at Rs 207 on the BSE.

Shares in both firms have run up sharply over the last few weeks. Rakesh Arora of Macquarie Capital Securities (India) advised investors to book profits in ACC saying there are risks on the downside.

"At 20 per cent price earnings multiple (PE), there is hardly any upside to be made in ACC," he added.