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January volumes grow ~11% YoY (~7% YTD)…
Major cement players have reported an aggregate increase of ~12% YoY
in cement dispatches in January 2012 mainly on account of a lower base
last year and a pick-up in demand during the month post festive season.
On an MoM basis also, cement dispatches reported moderate growth of
~3.2% due to a pick-up in construction activities across regions. Jaypee
outperformed other players with ~27% YoY growth in dispatches
followed by Shree Cement with ~18% YoY. UltraTech and ACC reported
YoY growth of ~11% and ~9%, respectively, in dispatches while Ambuja
reported ~4.3% YoY growth. JK Lakshmi and Heidelberg Cement
reported growth of ~7% YoY and ~6% YoY, respectively. On an MoM
basis, aggregate dispatches increased ~5%, due to a pick-up in demand
post festive season. Jaypee and J.K cement reported a sequential jump of
~13% and ~11% in dispatches, respectively.
In January 2011, overall industry dispatches grew ~11% YoY due to a low
base and marginal recovery in post festive demand. However, dispatches
in January 2012 increased by ~3.2% on a MoM basis.
Cement prices up by ~| 10/bag MoM in Jan’12
All-India average cement prices increased ~| 10/bag in January 2012 and
stood at ~| 270/bag. Prices in the western, southern and eastern regions
have seen an increase of | 5-15/ bag during the month while prices in the
central regions have seen a stability in prices. According to our discussion
with dealers, cement prices are expected to remain at the same levels or
may increase in the coming months if demand continues to remain
strong.
Industry outlook
All-India cement consumption is expected to grow by 6.5% in FY12E
against 4.4% in FY11 and 10.2% in FY10. The dispatches grew ~7%
during April 2011-January 2012 mainly led by ~15% YoY growth during
Nov-Jan. The demand picked up during the period mainly on account of
low base and increase in offtake from construction activities post
monsoon. However, the demand has been subdued during Apr’11-Oct’11
period and grew by just 3.5% YoY as the consumption from the housing
and infrastructure segments remained sluggish. The capacity utilisation
rate is expected to decline further to 76% in FY12E from 77% in FY11 and
87% in FY10. This is on account of ~ 19 MT additions in effective capacity
as against incremental demand of ~14 MT during the period.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
January volumes grow ~11% YoY (~7% YTD)…
Major cement players have reported an aggregate increase of ~12% YoY
in cement dispatches in January 2012 mainly on account of a lower base
last year and a pick-up in demand during the month post festive season.
On an MoM basis also, cement dispatches reported moderate growth of
~3.2% due to a pick-up in construction activities across regions. Jaypee
outperformed other players with ~27% YoY growth in dispatches
followed by Shree Cement with ~18% YoY. UltraTech and ACC reported
YoY growth of ~11% and ~9%, respectively, in dispatches while Ambuja
reported ~4.3% YoY growth. JK Lakshmi and Heidelberg Cement
reported growth of ~7% YoY and ~6% YoY, respectively. On an MoM
basis, aggregate dispatches increased ~5%, due to a pick-up in demand
post festive season. Jaypee and J.K cement reported a sequential jump of
~13% and ~11% in dispatches, respectively.
In January 2011, overall industry dispatches grew ~11% YoY due to a low
base and marginal recovery in post festive demand. However, dispatches
in January 2012 increased by ~3.2% on a MoM basis.
Cement prices up by ~| 10/bag MoM in Jan’12
All-India average cement prices increased ~| 10/bag in January 2012 and
stood at ~| 270/bag. Prices in the western, southern and eastern regions
have seen an increase of | 5-15/ bag during the month while prices in the
central regions have seen a stability in prices. According to our discussion
with dealers, cement prices are expected to remain at the same levels or
may increase in the coming months if demand continues to remain
strong.
Industry outlook
All-India cement consumption is expected to grow by 6.5% in FY12E
against 4.4% in FY11 and 10.2% in FY10. The dispatches grew ~7%
during April 2011-January 2012 mainly led by ~15% YoY growth during
Nov-Jan. The demand picked up during the period mainly on account of
low base and increase in offtake from construction activities post
monsoon. However, the demand has been subdued during Apr’11-Oct’11
period and grew by just 3.5% YoY as the consumption from the housing
and infrastructure segments remained sluggish. The capacity utilisation
rate is expected to decline further to 76% in FY12E from 77% in FY11 and
87% in FY10. This is on account of ~ 19 MT additions in effective capacity
as against incremental demand of ~14 MT during the period.
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