Cement Sector Q3 Earnings Preview: Another Strong Quarter; Upgrades To Continue, Says ICICI Securities
A worker holds up processed cement at a factory (Photographer Dario Pignatelli/Bloomberg)

Cement Sector Q3 Earnings Preview: Another Strong Quarter; Upgrades To Continue, Says ICICI Securities

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.

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.

Click on the attachment to read the full report:

ICICI Securities Cement Q3FY21 Preview.pdf

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