Sector outlook and recommendations: We expect the margin to further recover in Q1FY24 onwards, driven by further fuel cost cool-off and rebound in cement prices. Looking at current fuel trends, we believe input cost will cool off by INR 100-150 per MT QoQ in Q1FY24. We trim our industry unitary EBITDA estimates for FY23/24/25E by INR 10-20 per MT each on sub-par cement price increases. We expect the margin to rebound by INR 170/40 per MT YoY in FY24/25E respectively to INR 1,000/1,040 per MT. Hence, we remain positive about the sector. We maintain our BUY ratings on UltraTech, ACC, Dalmia Bharat, Nuvoco Vistas, Birla Corp, JK Lakshmi, and Orient Cements. We maintain ADD ratings on Ambuja Cement, Ramco Cements, Star Cement, Sagar Cements and Deccan Cement. We maintain REDUCE ratings on Shree Cement, Heidelberg Cement and JK Cement. Our top picks are UltraTech Cement, Dalmia Bharat, and JK Lakshmi. We estimate our coverage universe of 15 companies to deliver strong 9/14% YoY/QoQ volume growth (four-year CAGR: 7%) in Q4FY23. We expect strong volume offtake by UltraTech Cement, Dalmia Bharat, Nuvoco Vistas, Birla Corp., JK Lakshmi and Star Cement QoQ. We expect volume decline QoQ by ACC and Ambuja (Himachal plant shutdown). We estimate average industry utilisation of ~86% vs 78/85% QoQ/YoY