Ambuja Cements is expected to report topline growth of around 6.5 percent in the fourth quarter of the fiscal year 2018-19 on Tuesday. Analysts expect a total net profit of around Rs 320 crore.
In terms of dispatches, the number of around 6.5 million tonnes is expected. The company is functioning at around 85-90 million tonne capacity utilisation level. So it is very difficult for the company to report higher than that in terms of volumes.
Realisations will get a boost from western India. The company has no exposure to the south, where prices have gone through the roof. In north India as well as east, the price hike was towards the end of the quarter. So that will more or less not replicate in these numbers.
In terms of margins, the street is talking about 17-17.5 percent. That will be more or less stable or could be a bit of a downtick. The analysts will have to keep an eye out on input cost and how exactly the operating leverage should play out there and north and east India – the benefits of those prices will come later.