Cement Sector Check - Strong Volumes Improve Clinker Utilisation: Motilal Oswal

"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. .Motilal Oswal Report.After an initial hiccup in demand during early Q3 FY23; we believe cement demand recovered strongly over the quarter. We estimate 10% YoY volume growth in Q3 FY23 (three-year compound annual growth rate at 5.4%), aided by strong infrastructure and real estate demand as well as the low base effect of last year (sales volumes dipped 2.6% YoY in Q3 FY22). We expect 12% YoY volume growth for our coverage universe in nine months FY23 and estimate 4% YoY volume growth in Q4, thus translating into a volume growth of 10% YoY for FY23. We believe that clinker utilisation for our coverage companies has improved to 81% in Q3 FY23; up 4.5% YoY and 5.0% QoQ. Clinker utilisation in Q4 is estimated to be at 89.4%; largely in line with the utilisation trend of Q4 FY19 (90.7%) when the industry began to exhibit pricing power. Demand trend in early-January 2023 has remained strong and hence, we do not see any major risks for our Q4 FY23 volume growth assumptions (Q4 historically is the best quarter for cement demand)..Click on the attachment to read the full report:.Cement Q3 Results Preview - Pick-Up In Volumes, Easing Cost Pressure To Aid Margin Recovery: ICICI Direct.DISCLAIMERThis 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."

Cement Sector Check - Strong Volumes Improve Clinker Utilisation: Motilal Oswal

Clinker utilisation in Q4 is estimated to be at 89.4%; largely inline with the utilisation trend of Q4 FY19.

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Cement Sector Check - Strong Volumes Improve Clinker Utilisation: Motilal Oswal

Clinker utilisation in Q4 is estimated to be at 89.4%; largely inline with the utilisation trend of Q4 FY19.

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