After poor results over recent months, cement producers are likely to have performed better over September, with industry analysts predicting a possible 7% increase in sales. Industry growth in June, July and August was 2.5%, 1.63% and 2.13% respectively.
A domestic broker commented on the reasons for the growth: "The growth is not on the back of rise in demand. Rather, it is due to the poor performance of industry in the corresponding month last year," adding that demand had not yet been created by the construction industry.
Last year, a delayed monsoon season led to stronger sales until August, which dropped by 5% when heavy rains struck in September. Demand is expected to return this year from November.
Figures that have been released for September include Ambuja Cements, where sales rose by almost 9%. UltraTech sales rose 2.7%, while despatches from Jaiprakash Associates rose 61%. The rest of the industry’s figures should be released this week.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/06102010/cement_sales_showing_promise_in_india/