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ICICI Securities Report
Our channel checks suggest industry volumes likely declined by mid-single digit YoY during July 2020 – broadly similar to those witnessed during June 2020.
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Volumes in North, Central and East regions (least impacted by Covid-19 outbreak) likely grew in high single digit YoY also aided by better rural housing demand and pre-election spending; while volumes are still meaningfully down YoY in both West and South regions.
Average pan-India prices are up 3% YoY even as prices corrected by Rs 1012 per bag month on month across most regions with the onset of monsoons.
We maintain our positive stance and see an upside risk to consensus estimates.
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