Motilal Oswal: Cement Pricing And Volumes Decline Seasonally, But Remain Resilient YoY

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Our channel checks reflect expected seasonal weakness, with both cement demand and prices declining month on month in August.However, we remain constructive on the sector as YoY trends are still supportive of the current run-rate of volumes, and margins continue to be above consensus estimates.While variable costs are expected to rise from Q3 FY21 on account of higher costs of petcoke (up 5% YoY) and diesel (up18% YoY), total costs should still be under control given expected lower fixed costs this year (lower spends on sales promotion, travel, rent, repairs, and so forth).August is seasonally the weakest month of the year for cement volumes, weighed by heavy monsoon rainfall across most parts of the country.Data for the past 25 years suggests August volumes are 12% lower than the annual average..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Cement Pricing And Volumes Decline Seasonally, But Remain Resilient YoY

Motilal Oswal: Cement Pricing And Volumes Decline Seasonally, But Remain Resilient YoY

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