www.rupeedesk.in
Cement stocks to remain weak in the coming week, as lower quarterly earnings from cement companies due to low sales realisation amid weak demand will continue to weigh on sentiment. The country's largest cement maker by volume, UltraTech Cement, on Monday posted a higher-than-expected 37.5% year-on-year fall in net profit for Oct-Dec at 3.69 bln rupees, and a mere 1.5% rise in net sales to 47.86 bln rupees.
During the quarter, power and fuel costs rose by 2% sequentially, while freight costs is likely to have risen 5% estimated. The Railways had introduced a 'busy-season charge' of 15% on basic rates for all commodities including cement with effect from Oct 1. Also, imported coal prices rose to $85 per tn from $70 per tn in September.
Cement stocks to remain weak in the coming week, as lower quarterly earnings from cement companies due to low sales realisation amid weak demand will continue to weigh on sentiment. The country's largest cement maker by volume, UltraTech Cement, on Monday posted a higher-than-expected 37.5% year-on-year fall in net profit for Oct-Dec at 3.69 bln rupees, and a mere 1.5% rise in net sales to 47.86 bln rupees.
During the quarter, power and fuel costs rose by 2% sequentially, while freight costs is likely to have risen 5% estimated. The Railways had introduced a 'busy-season charge' of 15% on basic rates for all commodities including cement with effect from Oct 1. Also, imported coal prices rose to $85 per tn from $70 per tn in September.
