Cement Q4 Results Preview - Weak Pricing To Impact Profitability: Prabhudas Lilladher

Prabhudas Lilladher Report

We expect our cement coverage universe to report revenue/Ebitda/profit after tax growth of ~15%/3%/-1% QoQ (~8%/17%/0% YoY) given strong sequential volume growth aided by demand improvement since mid-quarter.

The start of the quarter was tepid due to harsh winters in the North and festivities in the South. East region largely remained under pressure due to fiscal challenges, which showed gradual recovery towards the end of the quarter.

Cement realisations were under pressure in Q4 FY24 as the price hikes undertaken in September-October 2023 were largely rolled back on muted demand.

Key monitorables to watch out are-

1. demand scenario amid Lok Sabha elections,

2. sustainability of recent price hikes undertaken, and

3. intensifying competition.

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