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.
ICICI Direct Report
Underlying cement demand continued to remain healthy with companies reporting record-high capacity utilisation rates in Q4 FY23. Overall volumes for our coverage universe grew 13.2% YoY to 69.0 million tonne (our estimate: 66.6 million tonne). Capacity utilisation rates improved ~ 390 basis points YoY to 91% (Q3 FY23: 80%).
Industry leader UltraTech Cement Ltd. led from the front with healthy growth of 16% YoY to 30.5 million tonnes. It continued to gain market share as the company operated at nearly 100% capacity utilisation rate in March 2023.
The Adani twins (ACC Ltd., Ambuja Cements Ltd.) also recorded healthy utilisation rates (95% plus ) despite challenges faced by the company regarding the shutdown of plant operations in Himachal Pradesh for 50 days.
Among the pack, Ramco Cements Ltd. (south player) outperformed with robust growth of 47% YoY to 4.7 million tonne driven by new capacity addition (in Kurnool, Andhra Pradesh) and sharp uptick in utilisation rates (85% versus 66% in Q4 FY22).
The pricing scenario remained weak during the quarter as companies focused on higher volumes to gain market share (multiple price hike attempts were not absorbed by the market).
While prices in north and central region remained stable, prices in south (especially down south) were weak (drop of Rs 15-20/bag). For Q4 FY23, blended realisations declined 1% QoQ to Rs 5680/tonne.
Companies indicated that current cement prices are flat or marginally negative versus Q4 FY23 and price hikes are only probable post the monsoon season.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
