Monsoon and slowdown in infra project plays spoilsport
Cement dispatches decline in June due to south-west monsoon and slowdown in infrastructure projects. ACC, Ambuja Cements and UltraTech Cement have reported a fall in sales in June over the previous month. However, ACC's production and sales are higher compared to last year as the company had added substantial capacity in the December quarter of last fiscal. The output and sales of Ambuja Cement and UltraTech Cement were almost flat when compared year-on-year. A bout of price cuts announced by the cement companies in June had failed to stem the falling demand. The other reason for the sharp fall in sales is increase in loan rates. Due to this, many builders have postpone their launch of new real estate projects. Many infrastructure projects were also delayed due to labour shortage and high cost of funds.