Cement major ACC is expected to report substantial increase in September quarter (Q3CY19) profit due to higher operating performance.
Kotak Institutional Equities expects profit to rise 81.4 percent while Motilal Oswal sees 44 percent increase in bottomline.
At operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to rise in the range of 26-30 percent due to lower fuel cost.
"Fuel costs should decline due to lower pet coke and coal prices but the majority of benefit to come in Q4CY20," said Kotak Institutional Equities which expects margin to expand by 313 bps YoY.
Motilal Oswal, which has a buy call on ACC, expects margin to increase by 250 bps YoY to 15.4 percent in Q3.
The company follows January-December as its financial year.
According to brokerages, volumes are likely to fall a percent YoY due to weak demand in August and realisations may fall 3-4 percent QoQ for September quarter.
"We expect a 1 percent volume decline led by growth in July and September, partly offset by weak August volumes. We expect blended realisations to decline by 3 percent QoQ led by price declines in Central and West markets," Kotak said.
Key issues to watch out for would be cement pricing sustainability, volume growth and update on capacity expansion plans.
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