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.
Cement demand recovered in November 2022 on a low base while Oct was dull due to the festive season. But Dec-22 is expected to be in-line with last year, which was a good month.
In Q3 FY23, increase in prices by Rs 20/bag across regions has been absorbed.
Even though input costs have been softening, the last few quarters have been difficult to navigate for the cement industry due to incessant cost inflation.
Also, demand has been muted, which has made it difficult for players to take price hikes. Companies have tried to take some price hikes in bits and pieces but the same has not been successful.
Q3 FY23 is likely to be better and with more price hikes in Dec-22, companies would be able to absorb 60-70% of the spike in costs.
Companies are consciously making efforts to manage their costs through direct dispatches, less warehousing, tweaking rail/road dynamics and increasing the usage of blended cement.
Click on the attachment to read the full report:
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.