Economy & Market
Better days ahead
After three quarters of extremely poor financial performance, Q4FY14/Q1CY14 could be a relatively better quarter for cement companies. Marginal demand recovery, sustained price hikes (due to production discipline and supply constraints in certain regions) and benign coal costs could mean strong q-o-q EBITDA growth. However, cement stocks of large companies have rallied 20-30 per cent in the March 2014 quarter but earnings growth is yet to catch up with expectations.