Brent near record high: See why your cement stocks may take a hit

Brent crude surged to trade near a 1-year high and this has had a negative impact on cement companies.

With crude oil prices moving up, it has its repercussions at both petcoke as well as on coal prices. According to Motilal Oswal for every $10 increase per tonne on coal as well as petcoke, it could impact the cost of production by around Rs 40 to 50 per tonne that is close to around 5 percent of the EBITDA per tonne that they delivered in the past quarter.