Anand Rathi: Cement Sector Q2 Earnings Preview - Sturdy Profitability Amid Weak Demand Environment  

Anand Rathi: Cement Sector Q2 Earnings Preview - Sturdy Profitability Amid Weak Demand Environment

A man sits atop bags of cement on a truck. (Photographer Prashanth Vishwanathan/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Anand Rathi Report

While volume recovery is expected to have been slow in Q2, a seasonally weak quarter due to monsoon, profitability however is expected to be firm on the dual benefits of high cement prices and low production cost YoY because of lower crude prices and cost-saving measures.

For the companies we cover, we expect revenue to have dipped 6% YoY whereas Ebitda and profit after tax would have risen respectively 17% and 43%.

Risks: Demand slowdown, rise in pet-coke prices, labour non-availability.

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Anand Rathi India Cement Q2FY21 Result Preview .pdf
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