Economy & Market

Earnings of cement firms may recover

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A report by Religare Research shows that the earnings of cement companies will recover only from the second half of 2013-14 (from September 2013) when the demand for cement rises and these firms regain their pricing power. Therefore, the firm expects earnings of cement companies to remain under pressure during Apr-June quarter and Jul-Sep quarter. The report attributes the muted prospect for earnings by cement companies during these two quarters to lacklustre demand and muted realisations. The topline of cement firms may decline 4 per cent on a year-on-year basis and c may fall 29 per cent and profit after tax by a whopping 32 percent in the June quarter, the report expects. Volumes declined for most companies, except those with a presence in south India. The volume of firms operating in the north or west may fall sharply, the report expects.

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