Rail freight hike may impact cement margins: India Ratings

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.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Travelcafe
moneycontrol.com

Home » News » Economy

Mar 01, 2013, 07.28 PM | Source: Moneycontrol.com

Rail freight hike may impact cement margins: India Ratings

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.

Like this story, share it with millions of investors on M3

Rail freight hike may impact cement margins: India Ratings

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.

Post Your Comments

Share Cancel

(more)

, India Ratings |

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. In the event cement manufacturers are unable to pass on the rail freight cost hike, their operating margins may reduce by 75bps-100bps.

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.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Rail freight hike may impact cement margins: India Ratings

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login