Cement sector exits Q4 with flat prices

For cement companies, the March quarter (Q4FY23) was a wash in terms of cement price movements. Elara Securities (India) Pvt. Ltd.'s most recent dealers channel check revealed that the average retail retail price across India fell by $8 per 50kg bag on a month-on-month basis to $371 in March. As a result, the average cement price across India is expected to rise by around 2% year-on-year base, but can remain essentially stable in Q4FY23.

According to the Elara report of March 28, attempts at price increases have not been successful. due to the volume push, lower than expected demand and larger discount offers.

Unseasonal rainfall and labour shortages in some regions also had a negative impact on construction activities and the demand for cement.

Investors should prepare for an increase in muted sequential realizations in the coming quarter earnings as a result.

According to the region, the price per bag fell by 5 in central India, then in the north, west, east, and South. The monthly decline in South India was the largest with Rs. 10 per bag. Prices in this region have been declining for some time, mainly due to fierce rivalry for market share. Although the June quarter is generally good for the cement industry, a price increase is expected. in April.