Cement Q2 Earnings Preview - Double Whammy Of High Cost, Softened Prices To Weigh On Margins: KRChoksey
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KRChoksey Research Report
We expect the cement companies to remain resilient during the quarter, despite the confluence of negative factors such as seasonality, sand availability issue, and rising input cost, weighing on the sector.
Traditionally, Q2 has been a muted quarter, but Q2 will be relatively stable in the current fiscal due to the lower base and improving demand environment.
Overall, for Q2 FY22E, our cement coverage universe is expected to report sales growth of 8.4% YoY, and Ebitda will decline by 3.6% YoY.
On a sequential basis, most of the companies under our coverage are expected to report a de-growth, except for The Ramco Cements Ltd. which is expected to report a sales growth of ~14% mainly due to lower base.
The cumulative realisation for our coverage companies is expected to grow by ~4% YoY.
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