Cement consumption to grow by 10% in March qtr: P Lilladher

Prabhudas Lilladher has come out with its earnings estimates on cement sector for March quarter FY12. According to the research firm All-India cement consumption is expected to grow by 10% to ~64m tonnes in the quarter

Prabhudas Lilladher results estimates on cement Sector

All-India cement consumption is expected to grow by 10% to ~64m tonnes in the  quarter on the back of a strong momentum in the Western, Northern and Central  region, while, consumption for the full year FY12 is expected settle at ~225m tonnes  with growth of 7%, in line with our estimates.

Thanks to continued buoyancy in demand from Housing, Industrial and  Infrastructure sector, Western region’s consumption is expected to grow by 11% YoY  for the quarter despite a high base (+15% YoY and +20% in Q3). On the similar lines,  consumption in Central region grew by 14% on the back of a strong rural demand  and election-driven demand in UP. Northern region’s consumption grew by 14% in  the quarter, aided by a low base with 4% growth and strong demand in Punjab and  Rajasthan. Southern region demand witnessed 7% YoY growth, thanks to a negative  base of 5% and growth in Tamil Nadu. Growth in Eastern region’s consumption is  expected to remain subdued on the backdrop of high base of 11% and demand slowdown  in Bihar and Jharkhand.   

(Rs in million)

Company		Q4FY12E	Q4FY11	YoY gr. (%)	Q3FY12	QoQ gr. (%)
UltraTech Cement	Sales	53,693	44,901	19	45,719	17.4
	EBITDA	11,785	10,210	15.4	9,649	22.1
	PAT	7,285	7,268	0.2	5,695	27.9
Ambuja Cement	Sales	26,425	22,071	19.7	23,291	13.5
	EBITDA	6,868	6,116	12.3	4,211	63.1
	PAT	4,549	4,075	11.6	3,267	39.3
ACC	Sales	30,752	25,562	20.3	26,474	16.2
	EBITDA	6,608	5,581	18.4	3,863	71.1
	PAT	4,182	3,502	19.4	4,632	-9.7
Shree Cement	Sales	15,106	10,701	41.2	12,586	20
	EBITDA	4,563	2,959	54.2	3,324	37.3
	PAT	1,609	897	79.3	592	171.7

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