Strong volumes seen leading Q3 revenues for domestic cement players

Weak pricing, higher cost of production to hurt EBITDA/tonne of large players

The domestic cement sector is expected to witness volume-led revenue growth in the quarter ended December with strong demand from semi-urban and rural regions, mainly for housing, likely to lend firm support.

During Q3FY21, the demand for cement registered a 6-7 per cent year-on-year growth compared to the 5 per cent year-on-year growth seen in the preceding quarter, Antique Stock Broking said in its report.

The recovery been driven by the rural segment, followed by a pickup in tier-2 cities and infra segment along with a mild recovery in the urban segment, said the report.

While the demand was good