Mar 01, 2013, 07.28 PM | Source: Moneycontrol.com
According to India Ratings, the proposed 5.79% increase in rail freight as per the Railway Budget 2013-2014 may negatively impact the margins of the cement industry.
, India Ratings |
The cement manufacturers of South India will be particularly affected, given the unfavorable demand-supply situation may not be in a position to pass on the increased cost. However, cement players based in the rest of India would be able to pass on a significant portion of the cost increase.
The railway freight hike may potentially increase the cement price by INR2 to INR4 per bag.
Around 50%-60% of the freight expense of a typical cement company is related rail freight. This is essentially 15%-18% of total costs. Around 10.5%-11.0% of rail freight (by volume) is attributable to the cement industry. This is second only to coal which accounts for 45%-47% of the rail freight.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
The 10-year yield could trade in a range of 6.75-6
The 10-year benchmark yield is likely to trade in
The 10-year benchmark yield could trade in the 6.7
The new 10-year yield is likely to stay in the 6.7
We believe, the RBI is unlikely to rush with any r