Deleveraging and stronger operational performance is likely to boost India Cements net profit for the December quarter, according to a CNBC-TV18 poll. Its Q3 net profit is seen jumping 591 percent year-on-year to Rs 38 crore from Rs 5.5 crore in the same quarter last fiscal, analysts surveyed have said.

During the quarter, the cement firm's total income may rise 19 percent to Rs 1,120 crore against Rs 937 crore YoY. Its Q3 operating profit is seen rising 22 percent at Rs 187 crore against Rs 153.65 crore while margins may stand at 16.7 percent compared to 16.4 percent (YoY).

Analysts polled by CNBC-TV18 expect 18 percent (YoY) uptick in sales volumes to 2.25 metric tonnes on higher infrastructure spend in newly-created regions in Andhra Pradesh and Telangana. This coupled with a low base is likely to push up the volumes. Furthermore, sales in the South of India have been more resilient than the other regions, which is likely to aid volumes.

Meanwhile, the company reduced debt by around Rs 100 crore in the first half of FY17 and are targeting an overall repayment of Rs 250 crore n FY17. It is also seeing this deleveraging to continue to show through FY17. The company’s realisations are expected to be flattish, which may impact its EBITDA margins. A rise in petcoke prices could also swing the margins.

The fuel mix for the firm consist of 80 percent petcoke and 20 percent domestic coal. Key issues to watch out for in Q3 earnings will be visibility on Andhra Pradeshh demand recovery, post demonetisation demand, especially in South India and pricing outlook in the region.