Cement prices were down marginally by 1% MoM in the first half of September 2017, led by price weakness in the north region on account of seasonally weak demand.
All-India average cement prices for 2QFY18 declined 5% QoQ, led by the north and south regions, as exit prices of 1QFY18 were weaker than average cement prices for the quarter. Average prices for the north and south regions in 2QFY18 will likely be lower by 5% and 6% QoQ, respectively.
All-India cement demand continues to be stable. Demand in north is stable, but witnessing some moderation in east. Demand in south continues to be flattish-to marginally negative. Western region has seen demand pick-up post seasonal weakness in July.
North players are likely to witness relatively good volume growth in 2HFY18 (v/s south players) due to a favorable base. Additionally, easing of supply addition in north may result in better profitability for 2HFY18.
Cement price correction marginal at 1% MoM on all-India average level
All-India cement price correction for the first half of September was marginally lower by 1% MoM, as price correction in north was offset by largely flat prices elsewhere.
Cement prices in north corrected by 3% MoM, as demand weakened due to heavy rains. Cement prices in south/west/east/central were largely flattish MoM, with select regions like Hyderabad, Mumbai and Ahmadabad witnessing price increases in the first week of September.
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Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.
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