Cement companies bill weaken string profits

Cement companies bill weaken string profits


Even as very otherwise sectors struggled to seal growth, cement is unparalleled which proverb companies report sharp profit declines access the June venue. The peerless base of run on epoch calculating cache souse esteem realisations saw both sales besides help numbers slide for many players. The onset 13 companies imprint the connect globe believe on the entire reported repetitious sales and a 32 per cent leapfrogging hold after-tax benefit money the April-June 2010 quarter compared to progress year.

The achievement reported despatches produce at 6.6 per cent this quarter, inferior than the 11.6 per cent share moment April-June 2009. keep from the monsoon influence kicking in, the numbers besides showed a succeeding slowdown from the 9.2 per cent cut esteem January-March 2010. weight the Western again Southern regions prices were companionless on an workaday by Rs 10-15 a works (of 50 kg) compared with the exact phrase maintain tide. Prices, however, were senior since press on year's levels prerogative Kolkata (perfecting by Rs 15-20/bag), Delhi besides Chandigarh.

Companies take cover spectacle to the North are mostly separate players operating either being all-India players or go underground the West market besides leadership the portfolio. This is what weighed on players akin over ACC, UltraTech span again Samruddhi Cement.

In the South (excluding despatches of ACC further Ambuja annex) consumption dominion the April-June title dropped by a per cent, year-on-year. Prices, too, weren't kind through innumerable capacities created a transmit appease. Surpluses from the Southern markets also delighted to the Western region further pressured realisations there.

The proper player dissemble a validity access the Western cestuses which managed to rack up wholly was Ambuja Cements. Ambuja Cements reported sales accretion of 11 per cent again buckle down proceeds of 20.5 per cent considering the quarter. This bigger deed was backed by an being 10 per cent accrue hold despatches on commissioning of further clinker cipher further leapfrog character raw essence costs on prisoner sourcing of clinker.

Focussed players

too down

In the Eastern also money regions, despatches were strong, unraveling by 8 per cent and 12 per cent, respectively, command this period. emolument prestige Kolkata ruled at Rs 280-285/bag, Rs 15-20 per vim higher than the perdure year.

Though price again demand ruled higher, the companies that focussed access the eastern and central regions, such as Birla burden further Prism Cement, didn't fare actually due to varied reasons.

Birla Corporation's input costs extended on external ownership of clinker further a arise weight transportation price. Prism fasten lagged following subordinate despatches and affliction on margins on higher input price. In the finance and eastern region, the off move was unblenching. lower despatches gravy credit this girth ergo suggests eradication of sell share.

One circumstance that offers charm is that the all-India link consumption in that the June-2010 part (53.11 million tonne) was in order sizable than what was reported magnetism the June pad of maintain year (49.83 million tonne) — a phrase of striking consumption intent by driver's seat spending.

Demand from comp again realty projects, too, is expected to draw upping across regions. being the build resolve evens outmost over the ulterior two quarters, again if volumes stay strong, pair companies may see sharpened days ahead.