Coal news and updates

As anticipated, the earnings of cement companies in the September quarter were lacklustre as sales volume growth for most companies, except for those having a significant exposure to South India, was subdued due to heavy monsoon rains. Construction activity during the June-September monsoon period is generally dull.

 

Volume growth was strong in the south due to higher demand, led by infrastructure spending in Andhra Pradesh and Telangana.

 

South-based cement firms such as India Cements Ltd, Dalmia Cement (Bharat) Ltd and Ramco Cements Ltd registered volume growth in the range of 10-20% year-on-year (y-o-y).

 

On the other hand, pan-India companies such as ACC Ltd, Ambuja Cements Ltd and UltraTech Cement Ltd saw a decline of 1-10% y-o-y in volumes in the quarter gone by.

 

Cement volumes in India increased by a meagre 3.3% in the September quarter, according to the Department of Industrial Policy and Promotion (DIPP).

 

While south-based cement makers scored on the volumes front, north-based companies saw better operating profits, aided by a higher price realization.

Source: Livemint.com