Subdued volumes upset earnings
While cement prices have been affected in the southern and western markets, volume growth has been adversely impacted in all regions in November following demonetisation, rating agency Icra said.
“In the southern market, the prices have shown a decline of Rs 30/bag in October and November together, with the current prices hovering around Rs 300/bag. On an average, in the southern market, the cement prices during 8M FY2017 stood at around Rs 305/bag, lower by Rs 20/bag when compared to 8M FY2016,” Icra said in a statement.
“On a Y-o-Y basis, the average cement price during 8M FY2017 around Rs 260/bag is down by Rs 10/bag, compared to 8M FY2016. The November prices for the East and the North remained stable at Rs 325/bag and Rs 335/bag, respectively,” it said.