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Favourable winds blowing for cement sector, demand remains strong

Most of the majors have good balance sheets with low debt-to-Ebitda ratios

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3 min read Last Updated : Jun 02 2023 | 9:42 PM IST

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Cement companies witnessed speculative support from investors through FY23 amid hopes of a rebound. After capex announcements in the FY24 Budget, there was further interest due to expectations that government expenditure would boost earnings, besides a generic macro-recovery.

Cement earnings were under pressure in FY22 and FY23 due to high raw material and fuel costs; muted demand prevented them passing on the higher cost. Fuel prices are now moderating, which may reflect in earnings of cement companies going forward, once high-cost inventory is mopped up.

Imported coal prices have corrected 45-60 per cent in the past six months and petcoke

Topics : Cement sector Compass cement companies

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