Cement Q1 Preview - Demand Softens On Covid 2.0; High-Cost Pressure To Curb Profitability: Anand Rathi
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Anand Rathi Report
Q1 FY22 cement demand was curbed by lockdown restriction (Covid-19 second wave).
April/May production fell 15%/13% month-on-month (Index of Industrial Production data).
Our channel checks show non-trade demand was firm.
Various infra activities, pre-monsoon demand and relaxed lockdown restrictions led to cement demand rising in June.
For companies we cover, we expect cement volumes to decline 12.2% QoQ; though, because of the low base, YoY volumes would have grown ~60.5%.
On high input costs, cement prices were hiked across regions in Q1, the highest being in the East and South where all-India prices rose 7.4% QoQ (flat YoY).
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.