Top three domestic cement players ACC, Ambuja Cements and UltraTech Cement posted a mixed performance in their cement dispatches for the month of February 2011.
ACC registered an impressive performance with a strong 17% growth in its dispatches whereas Ultra tech and Ambuja Cements dispatches grew in the range of 4% to 5%. The increase in cement off take is on account of a pickup in the infrastructure activity (though by a lower magnitude compared to previous year). On a sequential basis the cumulative dispatches of top players have declined by 1.8% mainly on account of a lesser number of operational days in the month of February.
In terms of demand, dealers have confirmed that the cement off take is picking up except in the southern region. In Maharashtra the key concern of poor availability of river sand has been resolved to a great extent with supply of river sand coming in from Karnataka, Gujarat and Maharashtra itself.
Cement prices during the month have increased in most parts of the country by INR 10 to INR 15 per 50kg bag in February 2011. The price hike during the month was largely supported by supply control and a pick up in the volume. Further with the announcement of the change in the excise duty structure for cement in the Union Budget 2011-2012, the cement manufacturers have increased prices by INR 6 to INR 8 per bag from March 1st 2011 across the country. The price hike announced post budget is higher than the incremental duty burden.
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