Economy & Market
Telangana demand boosts cement sales
Robust demand from the Telangana region was the sweet spot in the performance of both India Cements and Ramco Cements. New road and irrigation projects, and planned housing for weaker sections of society should push up cement demand and eventually prices. Analysts believe that it could make up for five years of subdued growth in the south, partly precipitated by surplus capacity.
India Cements sold 18 per cent more cement in the quarter under consideration when compared with a year ago. Ramco sold 12 per cent more. Better still, both firms´ sales shot up by about 28 per cent when compared with the December quarter.
The deluge softened cement prices, dragging down realisations for both firms.
Therefore, net revenue of India Cements and Ramco grew only marginally, although they bettered forecasts on the Street.
Meanwhile, the southern firms have cashed in on the benefits of captive power generation over the last few years, through both thermal and renewable energy routes.