BL reported that cement sector has been one of the outstanding performers of India Inc in the June quarter with the sales of 11 listed companies expanding nearly 23% relative to the same period last year. Net profits expanded by a healthy 36%. However, there has been a significant North-South divide in the numbers; with players based in the North managing much higher growth rates in volumes and profits than those in the South.
While North based players averaged a 63% profit growth, the South based ones managed a mere 3%. Growth for the southern companies was more price led while northern players witnessed strong expansion in despatches.
| North | Sales | Profit |
| UltraTech Cement | 31 | 58 |
| Grasim Industries | 18 | 69 |
| ACC | 15 | 79 |
| Shree Cement | 51 | 163 |
(Change in YoY)
| South | Sales | Profit |
| India Cement | 10 | 2 |
| Madras Cement | 25 | 2 |
| Dalmia Cement | 27 | 16 |
(Change in YoY)
The strong show from the North was due to demand recording a 22% increase and prices climbing INR 7 per bag to INR 8 per bag during the quarter. Higher spending on infrastructure building in Delhi leading to the Commonwealth Games and the stimulus spending on infrastructure spurred cement demand. Cement companies in the region posted 15% to 30% growth in sales, the highest quarterly growth seen in recent quarters.
(Sourced from BL)
