Cement Sector Update - Higher Input Costs Dent Margins Sharply: Nirmal Bang

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Q2 FY22 earnings of cement companies were characterized by higher input costs and flat pricing. As the demand was dismal due to seasonality, higher input costs could not be passed on to the consumers and hence there was a sharp decline in margins. The sector (aggregate for 16 companies) reported its lowest Ebitda margin in the last 8 quarters at 21%, down 460 basis quarter-on-quarter. Key factors contributing to margin pressure were: (1) elevated coal and petcoke prices (2) availability issues for domestic coal (3) higher diesel prices (4) higher packing costs due to elevated crude prices and (5) higher other expenses (due to maintenance shutdowns and higher advertising & packing costs). .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Cement Sector Update - Higher Input Costs Dent Margins Sharply: Nirmal Bang

Cement Sector Update - Higher Input Costs Dent Margins Sharply: Nirmal Bang

Choose a plan