Building Material Q2 Results Preview - Expect Insipid Quarter Across Segments: ICICI Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.We expect building material companies under our coverage to report a tepid Q2 FY25. Pipe companies are expected to report volume growth of 6–15% YoY due to a slack in demand coupled with falling PVC prices in the first half of Q2, which resulted in dealer de-stocking. Ebit/kg of pipe companies is expected to remain muted YoY (except Finolex Pipes Ltd.) due to low operating leverage and some inventory losses, as PVC resin prices declined ~14% in first half of Q2 FY25. For ceramic companies, we expect demand to remain modest with Kajaria /Somany Ceramics reporting volume growth of 10%/4% YoY; Cera Sanitaryware may see flattish YoY revenue growth in Q2 FY25. Operating margins of ceramic companies will likely decline 32–57 bps YoY despite stable raw material prices, due to higher operating cost..In the plywood segment, we expect volume growth of 9%/7% YoY for Century Plyboards/Greenply Industries with operating profit margin declining 20 bps/14 bps YoY (-130 bps/-35 bps QoQ) due to higher raw material prices. In MDF, domestic volume for Greenpanel Industries may remain flattish, whereas for Century Plyboards it may grow 51.3% YoY (due to a low base and commissioning of new plant in Q4 FY24) with adjusted operating profit margin declining 9.3%/14.2% YoY for Greenply/Century Plyboard amid continued raw material pressures and various schemes offered by players due to heightened domestic competition..Click on the attachment to read the full report:.Housing Finance Companies Q2 Results Preview - Better Quarter With Pick-Up In Disbursals, NIM: PL Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Building Material Q2 Results Preview - Expect Insipid Quarter Across Segments: ICICI Securities

For ceramic companies, the brokerage expects demand to remain modest with Kajaria /Somany Ceramics reporting volume growth of 10%/4% YoY.

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Building Material Q2 Results Preview - Expect Insipid Quarter Across Segments: ICICI Securities

For ceramic companies, the brokerage expects demand to remain modest with Kajaria /Somany Ceramics reporting volume growth of 10%/4% YoY.

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