Q3 results preview: Cement firms' earnings, profitability likely to decline

Pricing weakness to chip away at earnings: Single-digit demand growth, realisations to dip

Indian cement makers may report single-digit growth in volumes, while their profitability could take a hit in the third quarter of the current financial year (Q3FY25). 

A Bloomberg analysts’ consensus shows both earnings before interest, tax, depreciation, and amortisation (Ebitda) and profit after tax declining for most cement makers in the quarter under review. 

In the absence of major price hikes, lower realisations will impact profitability on a year-on-year (Y-o-Y) basis, according to analysts. Cement prices during the quarter under review remained depressed for the most part, except for a price hike taken towards the end. 

Analysts with Nuvama, in