11 March 2020 Demand trends have been weak in south India over the past few quarters, particularly in Andhra Pradesh (due to the lack of new construction awards) where volumes are down by ~5% YoY. Demand in AP is likely to remain weak for another 6-9 months. Demand has picked up since Dec19, but TRCL would likely see only 5-6% volume growth in FY21 due to constraints on clinker capacity. In the longer term, TRCL is likely to continue delivering higher volume growth than the market. Prices in TRCLs operating markets of south and east have been muted in FY20, particularly with weak prices in AP impacting pricing in adjacent states. Prices in south have been trending down for the past 11 months and are lower by ~INR25/bag (7%) in FY20. Prices in east have also been weak and are lower by ~INR30/bag (8%) in the past 10 months.