Q3 earnings preview: Cement sector

While revenues might remain muted, operating profit is expected to contract due to lower prices and higher costs

The going has not been very good for large-cap cement stocks in the third quarter, given their underperformance compared to the Sensex. The third quarter results are expected to see large cement companies reporting a contraction in earnings as cement prices have not risen materially after the Competition Commission of India’s order. In December, cement prices saw a decline across markets as they fell between three to 11 per cent across India. Even in the southern markets, where prices have largely been static, cement prices declined, especially in Hyderabad. A section of analysts ...