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A 10-minute scan: cement
The prompt
Your interview tomorrow is with an office that works on building materials. Run the scan for cement. Then check the core unit economics: a plant in India sells cement at INR 5,000 per tonne (illustrative). Its costs per tonne are power and fuel INR 1,200, freight INR 1,100, raw materials INR 800 and other costs INR 1,100. What is EBITDA per tonne (earnings before interest, tax, depreciation and amortization; here, price minus these cash operating costs), and what is yearly EBITDA for a plant with 5 million tonnes of capacity running at 70 percent utilization?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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