EarningsShree Cement Q3 Preview: Profit May Nearly Double As Ebitda Per Tonne Rises
ADVERTISEMENT
Shree Cement Q3 Preview: Profit May Nearly Double As Ebitda Per Tonne Rises
The cement manufacturing company's net profit may jump 90% YoY to Rs 536.9 crore in the December quarter, with the Ebitda margin improving by 480 bps, according to Bloomberg consensus estimates.
Shree Cement Ltd.'s third-quarter profit may nearly double due to price hikes, reduced fuel expenses, and cost optimisation efforts leading to a higher Ebitda per tonne.
The cement manufacturing company's net profit may jump 90% year-on-year to Rs 536.9 crore in the quarter ended December, with the Ebitda margin improving by 480 basis points, according to Bloomberg consensus estimates.
While larger players like UltraTech Cement Ltd. did report lower than expected volume growth of 6%, brokerages believe that Shree Cement would be one of the players likely to outperform. On average, brokerages expect 11% year-on-year volume growth for Shree Cement.
Underlying Factors To Give Better Results
The lower input costs and higher estimated volumes on average are likely to lead to a 4% year-on-year improvement in realisations. Brokerages also expect an approximate 32.7% growth in Ebitda per tonne for Shree Cement.
Higher volumes and better realisations are expected to lead to a 20.4% increase in Shree Cement's Q3 revenues. The lower input costs leading to an improvement in the company's Ebitda per tonne is expected to increase the company's Ebitda by 50.4% YoY on average.