Sales volumes were a shade better than analysts’ expectations. On a positive note, cement realisations were higher by about 1.5%, which cushioned the fall in volumes.A greater benefit for the company has come in the form of lower costs which improved operating efficiencies.
As such, blended realizations increased marginally due to price hikes in the eastern and southern markets. Lower power costs also buoyed margins, but some of that was offset by an increase in raw material costs.The summer months are usually better for cement manufacturers and they are also able to take some price increases.
This time cement companies were not able to capitalise on this opportunity as prices are still below last year’s levels. In fact, the management.