Cement Sector Update - Volume improvement continued in May 2022 By JM Financial Research
Volume improvement continued in May’22
The railway freight data for May’22 indicates a minor improvement in demand on MoM basis. Volumes transported through railways reported a 2% MoM growth in May’22 with pick up in demand in majority of the regions. In comparison to last year, transported volumes in May’22 reported strong growth of 30% YoY, owing to a low base. Volumes in May’22 were also 3% higher than average volumes in Jan-Feb’22, (March volumes are typically lumpy and not comparable). The cumulative volumes for Apr-May’22 period is up 15% and 43% vs the volumes transported in Apr-May’21 and Apr-May’19 period (election months) respectively. Over last 4 years, YTD volumes grew by 6.4% CAGR. Key Findings
Demand was healthy in May’22
* Volumes transported through railways in May’22 reported growth of 2% MoM (+30% YoY given lower base due to lockdowns).
* Volumes in May’22 were also 3% higher than average volumes in Jan-Feb’22 as March month volumes are lumpy and not comparable.
* Overall FY23YTD volumes grew by 6.4% CAGR over last 4 years (Due to elections and Covid impact, data for last 3 years is not comparable).
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