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Slow demand, input cost mattered most to cement cos in Q2

Pricing pressure and low demand from the real estate sector continues to plague the cement sector even in the July-September quarter squeezing toplines of cement majors, say analysts

October 11, 2011 / 16:12 IST
     
     
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    Moneycontrol Bureau


    Low price regime and sluggish demand from the real estate sector continues to squeeze toplines of cement companies even in the July-September quarter, say analysts. While the coal price rise is well known, most other raw material prices have been rising steadily for the past few quarters---making it difficult for the industry to return to profitability anytime soon.


    Though cement despatches grew by around 8% on low base during the quarter under review, demand is yet to reflect strength. In addition to this, an increase in effective excise duty rates will lower cement manufacturers
    first published: Oct 11, 2011 11:40 am

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