With significant rise in input costs, cement companies' operating profit per tonne in Q1FY23 could experience a decade-high fall year on year. Jefferies estimated that average Ebitda/t for this quarter for cement companies under its coverage to decline ~Rs451 YoY / Rs45 QoQ to Rs958 (the YoY decline would be one of the highest in the past 10 years). Companies with exposure to the southern markets could experience sharper decline in their unit Ebitda because these companies have not been able to increase their prices this quarter, while companies with exposure to other geographies were able to take small increases for a short period in this quarter.
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