The cement sector is once again grappling with pricing pressure due to sluggish demand that prevailed throughout March. After raising prices early this year, companies had expected government spend on infra to pick up toward the end of FY13, but in a bid to control fiscal deficit, it cut budget by Rs one lakh crore.
However, Shailendra Chouksey, Wholetime Director, JK Lakshmi Cement expects spurt in construction activity due to upcoming elections in various states in the next one year. Projects like Gram Sadak Yojana and Indira Awaas meant for rural development will be expedited by state governments, he anticipates.
In an interview to CNBC-TV18, Chouksey said, "One can expect cement prices to correct in current calendar year." He also said that demand was better in the first half of FY13 on improved orders from various sectors. Read This: Hold JK lakshmi Cement; target Rs 138: Firstcall Research
On the proposed 5.79 percent increase in rail freight as per the Railway Budget 2013-14, Chouksey said his company may pass on 3-3.5 percent of the hike to consumers.
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