Cement Sector Q4 Preview - Low Base, Higher Demand To Improve Earnings: Nirmal Bang
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Nirmal Bang Report
Fourth quarter is always the best quarter for cement companies and we expect our coverage cement companies to report:
- robust YoY growth in volume primarily due to the low base of Q4 FY20,
- sequentially lower Ebitda/million tonne on account of cost inflation, and
- 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.
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