We expect industry volume to grow by 10% YoY in FY24. Input cost reduction should almost bottom out in Q4 FY24, in our view. Owing to fuel cost cool-off and higher green power share, we estimate our coverage universe margin will recover by Rs 170 per metric tonne YoY in FY24. Further owing to the higher fuel cost base in H1 FY24, rising green power share and price hike taken by companies in April 2024, we estimate a margin recovery of Rs 100 per mt in FY25. We expect a similar Rs 100 per mt margin recovery in FY26 too, aided by better pricing and lower cost. We have maintained our FY24/25/26E industry volume estimates. But we cut Ebitda estimates by 5/2% for FY24/25E respectively, owing…
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Cement Q4 Results Preview – Weak Pricing Dampens Industry Margin: HDFC Securities
