Cement Sector Q4 Preview - Low Base, Higher Demand To Improve Earnings: Nirmal Bang
A bricklayer spreads cement as he builds a wall for a new home. (Photographer Simon Dawson/Bloomberg)

Cement Sector Q4 Preview - Low Base, Higher Demand To Improve Earnings: Nirmal Bang

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.

Nirmal Bang Report

Fourth quarter is always the best quarter for cement companies and we expect our coverage cement companies to report:

  1. robust YoY growth in volume primarily due to the low base of Q4 FY20,
  2. sequentially lower Ebitda/million tonne on account of cost inflation, and
  3. increased debt repayments, owing to improved cash flows.

Demand across various segments like rural housing, affordable housing and infrastructure was buoyant in Q4 FY21.

We believe that most cement companies operated at full clinker utilisations across North, Central and West regions, thereby providing operating leverage.

South region reported positive demand growth after reporting contraction for a long time.

Click on the attachment to read the full report:

Nirmal Bang Cement Sector-Q4FY21 Earnings Preview - 8 April 2021.pdf

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