July 05, 2008

Cement realizations hit in January to March quarter

It is reported that the government’s measures to keep cement prices under check seem to have had a cascading effect on companies’ price realizations. Industry majors like ACC, Ambuja Cement and UltraTech have reported a drop or flat net realization per tonne.

Raw material cost was up by 11% YoY to INR 2,730 crore as against INR 2,465 crore in January to March 2008 quarter. Freight cost jumped by 9% YoY to INR 2,435 crore as against INR 2,236 crore.


Ambuja Cement’s realization dipped 3.4% to INR 3,448 a tonne as against INR 3,571 on sequential basis. Raw material cost zoomed 62% YoY to INR 255 crore as against INR 157 crore, while freight cost was up by 24% YoY to INR 274 crore as against INR 221 crore.

UltraTech Cement’s realization was down by 1% YoY on sequential basis at INR 3,796 a tonne as against INR 3,838.