Cement Q3 Results Review - Expansion In Capacities Accompanied By Strong Revenue, Margin Growth: DRChoksey

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..DRChoksey Research Report.The cement sector experienced healthy sales volume growth, propelled by government-supported infrastructure projects and housing segment expansion. However, compared to the previous quarter, demand faced challenges due to unseasonal rains, festive season impacts, labor shortages, and election-related factors. In Q3 FY24, industry-wide sales volume increased YoY, ranging from 6.0% (UltraTech Cement Ltd.) to 15.6% (ACC Ltd.). All companies witnessed sequential growth, except Ramco Cements Ltd., which observed a 13% QoQ decline. The average realisation for companies under our coverage was Rs 5,509. ACC leads the industry with higher-than-expected sales volume growth of 15.6% YoY and a notable 9.9% QoQ increase. The utilisation rate came in at 92.0%, with blended realisation reaching Rs 5,526. Shree Cement Ltd. also witnessed robust growth, with sales volume reaching 8.9 million tonnes and a 8.8% YoY increase in blended realisation to Rs 5,510 per tonne, UltraTech Cement showed resilience, achieving a 6.0% YoY and 2.0% QoQ increase in sales volume, with blended realisation improving to Rs 6,127 per tonne.Despite facing challenges, Ramco Cements achieved a solid 10% YoY growth in sales volume, although a 13% QoQ decline was attributed to adverse weather and festive season factors. Nonetheless, the company saw an increase in capacity utilisation to 74%, with blended realisation reaching Rs 5,265 per tonne..Click on the attachment to read the full report:.PSBs - Sustained Profitability To Drive Stock Performance: Motilal Oswal.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 Q3 Results Review - Expansion In Capacities Accompanied By Strong Revenue, Margin Growth: DRChoksey

Our preferred pick is Shree Cement, given its focus on stronger product mix, capacity expansion initiatives and robust operating leverage potential.

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