8 February 2020 India Cements (ICEM) 3QFY20 results highlight the demand slowdown in South India. Overall, volumes declined 10% YoY with pricing down 4% QoQ on demand weakness while EBIDTA/t reduced 12% QoQ led by lower realizations. We maintain our FY20/FY21E estimates and that demand revival in the South and subsequent pricing improvement will remain the key monitorables. Volumes declined 10% YoY to 2.66mt in 3QFY20. Blended realizations declined 4% QoQ to INR4,478/t due to weak prices in the South. Thus, net sales declined 10% YoY to INR11.9b (v/s est. EBITDA/t came in at INR484/t (in-line). However, given the lower volumes, EBITDA was down 5% YoY to INR1.3b (5% lower than est.).