Cement Sector Q3 Earnings Preview: Another Strong Quarter; Upgrades To Continue, Says ICICI Securities
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ICICI Securities Report
After posting 40% YoY Ebitda growth during Q2 FY21, companies under our coverage are likely to post strong 31% YoY Ebitda growth during Q3 FY21 led by 8% YoY volume growth with average Ebitda/tonne rising 21% YoY (Rs 191/tonne) to Rs 1,096/tonne.
Realisations are likely to decline 2.7% QoQ (Rs 129/tonne) though it would still be up 3% YoY (Rs 141/tonne).
Similarly, total cost/tonne may rise 1.8% QoQ (Rs 70/tonne), but would still be down 1.5% YoY (Rs 50/tonne).
Key trigger to watch out for - seasonal price hikes that usually start in mid-January as peak construction period sets in and also necessitated by cost escalations this time.
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