Cement Q2 Results Preview - Quarter Affected By Heatwaves, Monsoon: PL Capital

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..PL Capital Report.We expect our cement coverage universe to report revenue/Ebitda/PAT degrowth of ~5%/14%/40% YoY (de-growth of 15%/24%/45% QoQ) given the sharp decline in pricing in a quarter affected by monsoon and heatwaves. Demand was tepid due to weak construction activities and lack of government projects. The start of the quarter was weak due to heatwaves followed by monsoon across regions, which led to decline in demand and slowdown in construction activities. Pricing remained under pressure (declined 2-4% QoQ) across regions, especially for South and East where prices fell on average 4-5% QoQ. There were multiple attempts to hike prices by companies during the quarter, but due to monsoon, floods and lack of infrastructure activities, price hikes had to be rolled back, which kept cement realizations under pressure. We expect demand to gradually improve once monsoon recedes and government spending on infrastructure projects picks up followed by price hike announcements by companies across regions, which would aid H2 FY25 earnings. We cut FY25E Ebitda by 6-10% on weak H1 and expect earnings to improve as demand picks up from Q3 FY25. Key monitorables to watch out are: demand scenario amid festivals,sustainability of recent price hikes, andintensifying competition..Click on the attachment to read the full report:.Indian Cement Sector Q2 Results Preview - Soft Demand, Lower Prices Continue To Hurt Earnings: Systematix.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.

Cement Q2 Results Preview - Quarter Affected By Heatwaves, Monsoon: PL Capital

The brokerage expects demand to gradually improve once monsoon recedes and government spending on infrastructure projects picks up followed by price hike announcements by companies across regions.

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Cement Q2 Results Preview - Quarter Affected By Heatwaves, Monsoon: PL Capital

The brokerage expects demand to gradually improve once monsoon recedes and government spending on infrastructure projects picks up followed by price hike announcements by companies across regions.

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