Cement Industry Outlook For Q2

Cement Companies To Perform Better in September 2015 Quarter

With the recent hikes in retail cement prices in the north cement markets, and the continued good retail prices elsewhere, particularly in the south, cement companies are expected to put up a better show in the coming Q2 results though cement industry analysts, expect sales growth in the three months ending September to also remain subdued because of the monsoon season.

Some other aspects to be considered while arriving at better projections for the September quarter are that, while raw material costs as a percentage of net sales remained stable at around 17.8%, power and fuel costs were the lowest in around five years because of a decline in overall prices of cement industry consumables pet coke and coal. Moreover, with prices of key raw materials such as crude dropping sharply, margin recovery will be seen in the September quarter.