Cement Sector Q2 Review - Volumes Shall Continue To Drive FY22-25E Earnings Recovery: Dolat Capital

On YoY basis, all companies reported decent revenue growth in Q2 FY23.

<div class="paragraphs"><p>A handyman prepares cement mix. (Source: freepik)</p></div>
A handyman prepares cement mix. (Source: freepik)

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Dolat Capital Report

Our universe (13 stocks) reported revenue of Rs 396.6 billion in Q2 FY23, up 15.1% YoY (down 8.8% QoQ) led by up 9.8% YoY in volume to 70.5 million tonne (down 6.8% QoQ) coupled with up 4.9% YoY in blended realisation/tonne to Rs 5,628 (down 2.2% QoQ).

Ebitda declined sharply by 44.1% YoY to Rs 41.5 billion (down 44.5% QoQ) and blended Ebitda/tonne decreased by 49.0% YoY to Rs 588 (down 40.5% QoQ) due to up 19.6% YoY in blended cost/tonne to Rs 5,039 (up 5.7% QoQ), which was partially offset by up 4.9% YoY in blended realisation to Rs 5,628 (down 2.2% QoQ).

Accordingly, adjusted profit after tax witnessed sharp de-growth of 71.3% YoY to Rs 10.5 billion (down 72.2% QoQ) in Q2 FY23.

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Dolat Capital Cement - Q2FY23 Results Review.pdf


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