TAKING THE PULSE: Indian cement companies are expected to post higher net profit and revenue in the quarter ended Dec. 31, helped a rise in product prices and increased sales volumes.

According to Systematix Shares & Stocks, these companies are likely to post an improvement of 100-700 basis points in operating margins despite higher fuel and freight costs, as product prices rose 18%-26% from a year earlier.

COMPANIES TO WATCH:

Ultratech Cement Ltd. (532538.BY) - Reporting Jan 21

Market Expectations: The Aditya Birla group company is expected to post a 48% rise in net profit to INR4.72 billion and a 21% rise in sales to INR44.82 billion, according to the average of estimates from 10 analysts polled by Dow Jones Newswires.

Key Issues: According to brokerage Prabhudas Lilladher, costs likely rose 14% due to higher fuel and freight expenses, but its operating margin still likely expanded 411 basis points from a year earlier to 23.2%.

ACC Ltd. (500410.BY) - Reporting date yet to be announced

Market Expectations: The Indian unit of Swiss cement-maker Holcim Ltd. is expected to post a 53% rise in net profit to INR2.39 billion and 23.5% growth in sales to INR24.18 billion in the past quarter, show the average of estimates from 10 analysts.

Key Issues: "We expect operating profit margin [at ACC] to improve 500 basis points on year to 15.7%, driven by higher realizations [product prices]," said Motilal Oswal Securities.

Ambuja Cements Ltd. (500425.BY) - Reporting date yet to be announced

Market Expectations: The company, also a unit of Holcim, is projected to post a 57% rise in net profit to INR3.02 billion, according to estimates from 10 analysts. Its sales are expected to increase 28% to INR22.84 billion.

Key Issues: Edelweiss Securities expects Ambuja's sales to increase 10%. According to ICICI Securities, the company's average product prices in the past quarter rose 20% from a year earlier to INR4,249 a metric ton.

-By Prasenjit Bhattacharya, Dow Jones Newswires; 91-11-4356-3358; prasenjit.bhattacharya@dowjones.com