According to a few analysts and industry watchers, the hikes in the prices of cement by various cement manufacturers are an indication of a possible growth in volumes and probable profitable for cement makers during the current quarter.
A recent report released by analyst firm Edelweiss says that cement prices have picked up — on an average — during the month of April.
“Average all-India prices rose 6.7 per cent month-on-month led by (the) western and southern markets where price jumped in double digits, followed by the eastern market (up 6 per cent month-on-month) and other regions,” the report said.
The report claims that cement off-take was “robust” in the eastern region of India, “stable” in the north and “marginally weak” in Uttar Pradesh.
PhillipCapital India said in a 27th April report that despite assuming flat volume growth for the sector, Q1 earnings are likely to surprise positively, driven by prices hikes.
“Given a favourable demand scenario, we understand cement prices have been raised across pockets by about 10 per cent and further price hikes of 3-5 per cent cannot be ruled out in May 2017. After the monsoon arrives, cement prices are unlikely to be increased until the end of H1FY18,” the report said.