Cement Sector Q3 Results Preview - Cost Pressure To Ease, Demand Outlook Encouraging: Axis Securities

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Axis Securities Report.Traditionally, second half of the year stands out to be a favourable period for cement producers from a demand perspective as it revives after the end of the monsoon season. Post witnessing soft demand in Oct-22 due to festivity, demand revived sharply in Nov-22 and the trend continued in Dec-22 as well, which was driven by higher retail and institutional demand. Institutional demand was more robust led by increasing construction activity in most of the regions as Q2 FY23 had been impacted due to an extended monsoon. Construction activity also picked up on account of lower commodity prices of building materials. For companies under our coverage, we expect cement volume/revenue to grow at 9%/14% YoY owing to better demand and higher realisations. However, Ebitda/adjusted profit after tax is expected to contract by 11%/20% YoY, led by higher energy prices, though we see a sharp improvement in Ebitda/profit after tax on a QoQ basis. We estimate overall cement industry demand to grow in the range of 9-10% in FY23..Click on the attachment to read the full report:.FMCG Q3 Results Preview - Slow Pace Of Earnings Recovery In Staples: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cement Sector Q3 Results Preview - Cost Pressure To Ease, Demand Outlook Encouraging: Axis Securities

For companies under our coverage, we expect cement volume/revenue to grow owing to better demand and higher realisations.

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