With the monsoon season coming to an end, cement companies are likely to post higher revenue numbers, said research reports. “Cement prices declined by Rs 14-15 per bag sequentially due to the seasonal impact of the monsoon. However, after the weakness witnessed in July and August, cement prices are already showing signs of revival in several pockets – especially in West and North India,” said a report from Kotak Institutional Equities.
However, analysts say that the sector could have been affected by the above-normal monsoon in some parts of the country as well as a transport strike in the south. All-India cement dispatches increased by 8.5 per cent year-on-year in July-August 2011. “However, such strong growth has come on a low base and, hence, cannot be construed as a signal of pick-up in demand,” said a report from Angel Broking.
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