Cement Q1 Result Preview - Resilient Quarter; Profitability Intact Despite Cost Rise: ICICI Securities

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

While year-on-year as well as quarter-on-quarter comparison in Q1 FY22E is not meaningful given the varying degree of lockdown/restrictions due to Covid, industry is expected to post ~45% year-on-year growth in volumes with almost stable Ebitda/te year-on-year on a reported basis.

On a quarter-on-quarter basis, volumes are expected to be down ~20% quarter-on-quarter vs usual ~10% quarter-on-quarter decline, while average Ebitda /te may rise 8-9% quarter-on-quarter despite cost escalations.

We expect average realisation to rise 5% quarter-on-quarter (Rs 230/te) and 2.6% year-on-year (Rs 130/te) and total cost/te to increase ~3% both quarter-on-quarter and year-on-year (Rs 120/te).

Consensus earnings are yet again likely to be upgraded given better-than-expected prices sustaining till date in seasonally weak monsoon necessitated by cost escalations.

Click on the attachment to read the full report:

DISCLAIMER

This 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 author entity 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.