How does the coal shortage impact India#39;s cement companies?

Trading Calls - Equity F&O

Given that the cost savings from fuel efficiencies are near optimum levels, the recent jump in coal prices poses a fresh threat to the margin profile of all cement manufacturers

How does the coal shortage impact India's cement companies?

PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

One of the most critical trends since the onset of the pandemic has been global supply shortages. In the past few months, we have seen severe shortages across many products, from semiconductors to lumber to chemicals. The new pressure emerging from coal appears more severe than others owing to the fossil fuel’s strong link with manufacturing and energy sectors. The current situation has the potential to have a detrimental effect on cement companies as power and fuel expenses constitute…