Cement Q1 Results Preview - Margins To Remain Stable Despite Cost Pressure, Lower Sales Volume: ICICI Direct

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ICICI Direct Report

Localised curbs, which are effective in a majority of states, could cause revenues to drop in cement sector by more than 17% QoQ in Q1 FY22E from Q4 FY21, especially in rural pockets.

In terms of non-trade sales, some key major infrastructure project would continue to support the demand, however, on a moderate scale due to limited labour availability.

Retail demand remained weak in May 2021 while it reported a strong recovery in June 2021 ahead of monsoon.

In terms of prices, while majority of price hike taken during April first week were rolled back post imposition of restrictions, June saw average price hike of 6.5% QoQ with east, south and west region witnessing hike of over 11.8%, 8.6%, 7.5%, respectively.

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