Cement - Earnings to be impacted by lower realizations - Angel Broking

We expect our coverage cement universe to report a sharp earnings decline, impacted by lower realizations, as the demand scenario continues to remain sluggish. Volume growth for our cement universe is expected to be 4.1% yoy on a low base. But we expect a 1.2% yoy decline on the revenue front, mainly due to lower realization. Owing to lower realizations we also expect most of the companies under our coverage to post a decline in margins on a yoy basis. Overall we expect a 259bp yoy decline in OPM for our cement universe.

Source : Equity Bulls

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