Margins of cement companies to take further dent
News: Sharp spike in international coal/petcoke prices to further dent margins of all cement companies in the coming quarter.
Views: Ukrain Russia conflict has led to sharp spike in the international coal and petcoke prices which are alomost up over 55% in the past two weeks. This is going to increase the average cost by another Rs.350-400/t or Rs.18-20/bag in Q4 while recent price hikes of Rs.12-15/bag taken were not enough to pass on the cost. This may dent the margin further for all cement companies as against our earlier expectations of improvement in the margins in Q4FY22.