After a disappointing second quarter in which margins fell to multi-quarter lows, cement manufacturers will see some relief as cost pressures ease. Analysts believe that a recovery in cement demand and the continuation of price increases will be critical to earnings growth.

Prices for imported coal fell 19 per cent in the last month, according to analysts' data, after remaining elevated at $250-350 per tonne between March and October. Pet coke prices have risen slightly since mid-October, but analysts say they are still 29 per cent lower than first-quarter prices on average.

According to Motilal Oswal Financial Services analysts, the decline in coal and pet coke prices should result in an average cost reduction of at least Rs 150 per tonne in Q3 FY23.

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