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Informist, Friday, Jul. 18, 2025

MUMBAI – Shares of Indian cement companies are likely to take cues from the June quarter earnings of companies in the sector next week, including UltraTech Cement and ACC. The medium- to long-term outlook remains bullish, primarily on the back of likely better demand post-monsoon, further improvement in the government's capital expenditure, and better pricing, an analyst tracking the sector at a domestic broking firm said.

The government's capital expenditure in Apr-May rose 54.1% on year to INR 2.21 trillion. "If you ask me about the next few months, I'd say we need to wait till the monsoon season settles. I don't see any big negatives (for the sector). Growth is intact," the analyst said. Among the cement companies this week, Sagar Cement rose the most by almost 11%, while Shree Cement was the biggest laggard and fell 1.4%.

Investors await the June quarter earnings of cement companies to identify the trends and management expectations for the upcoming quarter. The combined revenue and net profit of ACC, Ambuja Cements, Shree Cement, and UltraTech Cement are expected to rise by 16% and 39% year-on-year, respectively, according to estimates compiled by Informist from broking firms. 

UltraTech is scheduled to release its results Monday and is likely to post strong earnings growth for the reporting quarter. The cement major is likely to report a 28% on-year growth in its consolidated net profit to INR 21.76 billion and 18% growth in revenue to INR 213.37 billion, according to the average of estimates from eight broking firms. The robust result will be supported by volume growth and an increase in sales realisation, coupled with benign input costs, broking firms said. 

Double-digit earnings growth is also anticipated for ACC, which is scheduled to release its results Thursday. Its consolidated net profit is seen rising 55% on year to INR 5.59 billion and revenue is projected to grow 12% to INR 57.56 billion, as per the average of estimates from 10 broking firms. The strong growth will be driven by higher realisation, incentives, and a marginal reduction in its cost structure despite the slight rise in energy costs, YES Securities said in its earnings preview report.  

TOP HEADLINES
* Ambuja Cements gets letter with no objection from NSE for Sanghi Ind merger
* Earnings Outlook:UltraTech sales seen up YoY on inorganic volume, price hike

Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:

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Reported by Anjana Therese Antony
Edited by Saji George Titus

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