Indian profits forecast to decline

India’s cement producers are expected to report a decline in profits for the July-September 2022 quarter, according to Mumbai-based brokerage house KR Choksey. The brokerage predicts poor results in the short-term as the industry sees a wave of consolidation taking place, along with huge capital expenditure plans announced by the industry’s leading players.

KR Choksey predicts a 19.2 per cent YoY fall in net profit for UltraTech in the 2QFY22-23 with the QoQ picture showing a 33 per cent decline. ACC Ltd is expected to post a 47.6 per cent YoY contraction in net profit with a 3.8 per cent fall on a QoQ basis.

Ramco Cement’s net profit is projected to decline sharply by 65.4 per cent YoY and 32.9 per cent QoQ, reports Investing.com, while Shree Cement is expected to see its net profit tumble by 48.2 per cent YoY but post a 4.4 per cent improvement QoQ in the 2QFY22-23.