Economy & Market
Cement cos may post strong earnings growth in June quarter
Brokerages expect most cement companies to announce healthy earnings numbers for Apr-Jun 2012 because of decline in input prices and strong demand for cement amid delayed monsoon.
Angel Broking expects most cement players to post a reduction in their power and fuel cost owing to the reduction in coal prices.
But an 8 percent depreciation of rupeeyear-on-year, partly negated the 20 percent fall in import coal prices.
Demand peaked in May on delayed monsoon after a tepid March-April, when several northern states were hit hard owing to sand shortage which eventually led to a decline in construction activities.
It is learnt that companies used the opportunity to liquidate their piled up inventories together the industry was able to sell 20.25 million tonne compared with 17.9 million tonne last year.
And while sales rose around 9 percent during the quarter, realizations too improved as cement prices climbed by almost Rs 23 per bag to hit a record high price of Rs 295 per bag.