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November dispatches jump on low base…
Cement majors report aggregate dispatch growth of ~22% YoY
Major cement players have reported a sharp rise of 22.2% YoY in cement
dispatches in November 2011, mainly due to the lower base of last year.
However, on an MoM basis, cement dispatches got slashed by 3.3% on
lower offtake due to a slow pick-up in construction activity across regions.
Jaypee outperformed other players with ~43% YoY growth in dispatches
followed by Shree Cement with ~41% YoY. Ambuja and UltraTech
reported YoY growth of 28.9% and 16.3%, respectively, in dispatches
while dispatches growth for ACC was a mere 4% YoY due to the higher
base last year. Other midcap cement players such as JK Lakshmi and
Heidelberg Cement reported growth of 23.4% YoY and 37% YoY,
respectively.
On an MoM basis, the aggregate dispatch remained lacklustre and dipped
~3.3% due to lower post festive season pick-up in demand. Except
Ambuja, all major cement players reported a decline in dispatches
numbers. Shree Cement and ACC reported a 7.3% and 7.1% decline in
dispatches, respectively.
In October 2011, overall industry dispatches grew 0.6% YoY due to the
higher base last year. However, dispatches surged 13% on an MoM basis
on the back of a marginal pick-up in demand due to the post festive
season pick up in demand.
Cement prices up by | 20/bag MoM in November
All-India average cement prices surged by ~| 20/bag in November 2011
across all regions and stood at ~| 267/bag. This major hike was seen in
the eastern and western region where prices increased by ~| 30/bag and
| 25/bag, respectively.
Industry outlook
All-India cement demand is expected to grow by 4.5% in FY12E against
4.4% in FY11 as the consumption has been subdued during the year and
grew by 3.5% YoY in April-October 2011. For November 2011-March
2012, we expect demand to grow by 6% YoY as it is expected to pick up
post the festive season. However, the slowdown in construction activities
would remain a key concern. The utilisation rate is expected to decline
further to 75% in FY12E and would remain at the same level in FY13E on
account of high additions in effective capacity as against incremental
demand. However, utilisation is expected to start improving from FY14E
onwards as incremental demand is likely to keep pace with the additions
in effective capacities.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
November dispatches jump on low base…
Cement majors report aggregate dispatch growth of ~22% YoY
Major cement players have reported a sharp rise of 22.2% YoY in cement
dispatches in November 2011, mainly due to the lower base of last year.
However, on an MoM basis, cement dispatches got slashed by 3.3% on
lower offtake due to a slow pick-up in construction activity across regions.
Jaypee outperformed other players with ~43% YoY growth in dispatches
followed by Shree Cement with ~41% YoY. Ambuja and UltraTech
reported YoY growth of 28.9% and 16.3%, respectively, in dispatches
while dispatches growth for ACC was a mere 4% YoY due to the higher
base last year. Other midcap cement players such as JK Lakshmi and
Heidelberg Cement reported growth of 23.4% YoY and 37% YoY,
respectively.
On an MoM basis, the aggregate dispatch remained lacklustre and dipped
~3.3% due to lower post festive season pick-up in demand. Except
Ambuja, all major cement players reported a decline in dispatches
numbers. Shree Cement and ACC reported a 7.3% and 7.1% decline in
dispatches, respectively.
In October 2011, overall industry dispatches grew 0.6% YoY due to the
higher base last year. However, dispatches surged 13% on an MoM basis
on the back of a marginal pick-up in demand due to the post festive
season pick up in demand.
Cement prices up by | 20/bag MoM in November
All-India average cement prices surged by ~| 20/bag in November 2011
across all regions and stood at ~| 267/bag. This major hike was seen in
the eastern and western region where prices increased by ~| 30/bag and
| 25/bag, respectively.
Industry outlook
All-India cement demand is expected to grow by 4.5% in FY12E against
4.4% in FY11 as the consumption has been subdued during the year and
grew by 3.5% YoY in April-October 2011. For November 2011-March
2012, we expect demand to grow by 6% YoY as it is expected to pick up
post the festive season. However, the slowdown in construction activities
would remain a key concern. The utilisation rate is expected to decline
further to 75% in FY12E and would remain at the same level in FY13E on
account of high additions in effective capacity as against incremental
demand. However, utilisation is expected to start improving from FY14E
onwards as incremental demand is likely to keep pace with the additions
in effective capacities.
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